UCHAR PROPERTY LIMITED

Executive Summary

Uchar Property Limited is a recently formed micro-entity with a weak financial base characterized by negative net assets and a significant working capital deficit. The company’s current liquidity constraints and undercapitalization present a high credit risk. Without evidence of improved cash flows or capitalization, credit extension is not recommended at this stage.

UCHAR PROPERTY LIMITED - Analysis Report

Company Number: 14430898

Analysis Date: 2025-07-20 12:54 UTC

1. Credit Opinion: DECLINE
   Uchar Property Limited shows significant weaknesses for credit approval. The company is a recently incorporated micro-entity with a negative net asset position (£-8,163) and net current liabilities of £67,718. This indicates a fragile financial structure with working capital deficits and reliance on long-term creditors. The absence of profit and loss data limits visibility on operational performance, but the balance sheet signals undercapitalization and potential liquidity stress. Given these factors, extending credit without strong additional security or guarantees is high risk.

2. Financial Strength:
   The balance sheet as of 31 October 2023 reveals fixed assets of £226,450, but current assets of only £13,792 against current liabilities of £82,989, resulting in a working capital deficit. The company’s total liabilities, including creditors due after more than one year (£151,495) and accruals, exceed total assets, producing negative shareholders’ funds. This indicates inadequate capitalization and ongoing funding challenges. The company’s financial position is weak, with no retained earnings or reserves to buffer against losses.

3. Cash Flow Assessment:
   With net current liabilities of £-67,718, the company’s liquidity position is constrained. Current assets are insufficient to cover short-term obligations, suggesting potential cash flow difficulties. The filing does not provide cash flow statements or profit and loss accounts, but the working capital deficit combined with negative equity implies limited internal cash generation or external financing capacity. This raises concerns around the company’s ability to meet upcoming liabilities and service any new debt.

4. Monitoring Points:

• Monitor quarterly or interim financial updates, focusing on changes in working capital and net asset position.
• Observe any improvements in cash reserves or reductions in short-term liabilities.
• Track operational performance indicators once profit and loss data becomes available.
• Assess directors’ actions regarding capital injections or debt restructuring.
• Watch for timely filing of next accounts and confirmation statements to reflect ongoing compliance and financial transparency.