SWAN BALTI RAJ LIMITED

Executive Summary

Swan Balti Raj Limited exhibits weak financial fundamentals with negative net assets and working capital at the latest year end, reflecting insufficient resources to support credit. The company’s micro size and start-up status, combined with limited financial history and no profit data, heighten credit risk. Credit approval is not recommended until clear evidence of improved financial strength and cash flow stability is demonstrated.

SWAN BALTI RAJ LIMITED - Analysis Report

Company Number: 14517692

Analysis Date: 2025-07-20 17:18 UTC

1. Credit Opinion: DECLINE
   Swan Balti Raj Limited, incorporated in December 2022, is a micro-entity operating in the unlicensed restaurant and cafe sector. The latest financials to 31 December 2023 show net current liabilities of £29 and negative net assets of the same amount, indicating a weak balance sheet position. The company has minimal current assets (£1,582) offset by slightly higher current liabilities (£1,611), resulting in negative working capital. Given the negative equity and very limited asset base, the company currently lacks the financial strength to service debt or absorb financial shocks. No profit and loss data is available to assess earnings or cash generation, further increasing uncertainty. The business is effectively in a start-up phase with only one employee (the director), which adds to risk due to limited operational scale and financial track record. The sole director and 100% controlling shareholder is a young individual with no disclosed financial or management track record to mitigate concerns. Based on these factors, credit approval is not recommended at this stage without significant improvements in financial health and cash flow generation.

2. Financial Strength:
   The balance sheet shows total current assets of £1,582, primarily cash or receivables, against current liabilities of £1,611, leading to negative net current assets of £29. Total net assets and shareholders’ funds are also negative £29, indicating insolvency on a technical basis. There are no fixed assets reported, and no retained earnings or reserves to cushion losses. This weak capital structure and lack of tangible asset backing highlight high financial vulnerability.

3. Cash Flow Assessment:
   With negative working capital and no disclosed profit and loss details, the company’s liquidity position is precarious. The minimal current assets are insufficient to cover short-term obligations, suggesting potential cash flow challenges. The absence of operating cash flow data and minimal employee base imply limited revenue generation capacity at present.

4. Monitoring Points:

• Monitor forthcoming financial statements to assess profitability and cash flow trends.
• Track working capital improvements and any injection of equity or debt funding.
• Observe changes in current liabilities and any delays in creditor payments.
• Review management’s experience and any operational scale increase.
• Monitor sector conditions impacting unlicensed restaurants, especially post-pandemic recovery.