A MEHTA CONSULTANTS LTD

Executive Summary

A Mehta Consultants Ltd is a newly incorporated micro-entity showing stable but very modest financial health, with just enough assets to cover liabilities. The company’s financial "vital signs" indicate a fragile but solvent position typical of start-ups. Strengthening working capital and careful cash flow management are critical next steps to ensure sustainable financial wellness and resilience against shocks.

A MEHTA CONSULTANTS LTD - Analysis Report

Company Number: 15052770

Analysis Date: 2025-07-29 20:21 UTC

Financial Health Assessment for A Mehta Consultants Ltd (as of 31 August 2024)

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1. Financial Health Score: C

Explanation:
The company is in its first full financial year, showing a positive but very modest net asset position (£139). This reflects initial operations with minimal capital and low financial complexity. The company is solvent with current assets slightly exceeding current liabilities, but the financial base is fragile due to very limited resources. This score indicates a stable but vulnerable financial health typical of a new micro-entity startup.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£4,071	Indicates available short-term resources, mainly cash or receivables. Healthy for a startup.
Current Liabilities	£3,932	Obligations due within one year, almost equal to current assets, showing tight liquidity.
Net Current Assets	£139	Positive but very low working capital; a small buffer against short-term financial stress.
Net Assets (Shareholders’ Equity)	£139	Indicates the residual value of the company after liabilities; minimal capital base.
Number of Employees	1	Sole director/operator, which aligns with micro-entity status and minimal overheads.
Account Category	Micro	Benefits from simplified reporting but limited scale and financial flexibility.

Interpretation:
The company's "vital signs" show a fragile but currently stable condition. The slight surplus in current assets over liabilities is a key indicator of liquidity — the company can meet its short-term obligations but only just. The net assets reflect initial capital invested and retained earnings, which are minimal, typical for a young micro-business. No audit requirement and exemption status reduce compliance burden but also mean less external financial scrutiny.

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3. Diagnosis

• Financial Condition:
  The company exhibits the "symptoms" of a very young and small enterprise. The small positive net current assets suggest no immediate liquidity distress; the company can cover its short-term debts. However, the very thin margin between assets and liabilities signals potential vulnerability to any unexpected expenses or delays in revenue collection.

• Operational Health:
  With only one employee (the director), operational complexity is minimal, reducing overhead risks. The company operates in management consultancy, bookkeeping, and accounting activities, which typically require low capital investment but depend heavily on cash flow and client payments.

• Risk Factors:
  The primary risk is the limited financial cushion and very low equity base, which may limit the company’s ability to withstand shocks or finance growth without additional capital injections or credit facilities.

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4. Recommendations

• Strengthen Working Capital:
  Seek to increase current assets through either capital injection, improved receivables collection, or maintaining cash reserves to build a stronger liquidity buffer.

• Monitor Cash Flow Closely:
  Implement rigorous cash flow forecasting and management to avoid cash shortages, as the current tight liquidity margin offers little room for error.

• Plan for Growth Capital:
  Consider strategies to raise additional equity or secure credit lines to provide funding for expansion or to cover unforeseen costs.

• Maintain Compliance and Reporting:
  Continue adhering to filing deadlines and micro-entity reporting provisions to avoid penalties and maintain good standing.

• Risk Management:
  Prepare contingency plans for operational risks, as the company’s small size and limited resources make it vulnerable to client payment delays or unexpected expenses.

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