Company Number: 13053789

Analysis Date: 2025-07-29 14:56 UTC

1. Risk Rating: MEDIUM

Justification: Surya Estates Limited shows a significant increase in fixed assets over the last financial year, indicating potential investment or acquisition activity in real estate. However, the current liabilities have grown substantially and now approximate the total long-term liabilities, raising concerns about short-term cash flow pressures and solvency risk. The company remains a micro-entity with minimal equity and no employees, which may limit operational capacity.

2. Key Concerns:

• Liquidity Risk: The company’s current liabilities (£1,074,527) vastly exceed current assets (£4,474), resulting in a negative net current asset position (-£21,909) at the end of 2023, which may indicate challenges in meeting short-term obligations.
• Solvency Pressure: Although net assets remain positive (£4,057), this is a very thin equity buffer relative to total liabilities, suggesting limited financial resilience.
• Operational Sustainability: The absence of employees and the company’s micro-entity status suggest a possibly minimal operational structure relying heavily on management or external contractors, which could impact business continuity.

3. Positive Indicators:

• Compliance: The company’s accounts and confirmation statements are filed timely and are up to date, indicating good regulatory compliance.
• Asset Growth: Fixed assets nearly doubled from £607,860 in 2022 to £1,100,493 in 2023, which may reflect strategic asset acquisition and growth in the company’s real estate portfolio.
• Directors Stability: The same two directors have been in place since incorporation, which may indicate consistent management.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and the company’s plan to manage or refinance these obligations, especially given the liquidity mismatch.
• Obtain details on cash flow forecasts and any external financing arrangements supporting the fixed asset growth.
• Clarify operational model given no employees are reported—understand reliance on directors or third parties.
• Review any contingent liabilities or off-balance sheet commitments not reflected in the micro-entity accounts.
• Assess the valuation method for fixed assets to ensure the asset base is not overstated.