Company Number: 12599902

Analysis Date: 2025-07-20 17:37 UTC

1. Credit Opinion: DECLINE
   Ajmal Khurram Ltd presents significant credit risk based on its financial position. The company has been consistently reporting negative shareholders' funds and net current liabilities over multiple years, with an increasing deficit from £1,794 positive net assets in 2020 to a negative £7,624 in 2024. This indicates ongoing losses and erosion of capital, raising doubts about its ability to service debt or meet contractual obligations without additional external support. The lack of any employees and minimal current assets further diminishes confidence in operational capacity and financial resilience.

2. Financial Strength:
   The balance sheet is weak and deteriorating. Fixed assets are negligible (£1,306) and current assets have declined sharply to £38 in 2024. The company carries current liabilities of £8,968, creating a substantial negative working capital position (-£8,930). Negative total assets less current liabilities and shareholders’ funds indicate insolvency on a balance sheet basis. The micro-entity status and very low share capital of £2.00 also suggest limited financial buffer or shareholder support.

3. Cash Flow Assessment:
   There is no direct cash flow statement, but the very low current assets versus high current liabilities strongly imply liquidity stress. The company’s net current liabilities position has worsened year-on-year, which typically signals insufficient cash or near-cash assets to cover short-term obligations. The average number of employees is nil, indicating minimal operational activity and likely limited cash inflows. This profile suggests poor working capital management and weak cash generation.

4. Monitoring Points:

• Continued deterioration of net current assets and shareholders’ funds
• Ability to generate positive operating cash flows or secure additional funding
• Payment behavior and timely settlement of trade creditors and any financing facilities
• Any changes in business model or management that might improve financial performance
• Filing of future accounts and confirmation statements on time to monitor ongoing compliance