AMITHA VISHNU LIMITED

Executive Summary

Amitha Vishnu Limited is a nascent micro-entity in residential care with limited financial history and small asset base. The company shows solvency but tight liquidity and diminished equity, necessitating cautious credit extension with regular monitoring. Improved cash flow and working capital management will be key to supporting ongoing creditworthiness.

AMITHA VISHNU LIMITED - Analysis Report

Company Number: 14131188

Analysis Date: 2025-07-29 12:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Amitha Vishnu Limited is a micro-entity operating in residential care for the elderly and disabled with a short operating history since incorporation in May 2022. The latest financials show a positive net asset position (£267) but a marked decrease from £588 the prior year. Current liabilities have reduced but remain significant relative to current assets, indicating tight liquidity. The company’s ability to service debt is somewhat constrained by low current assets (£62) against creditors due within one year (£623). Given the limited financial history and tight working capital, credit should be extended with conditions such as regular covenant monitoring and limits on additional borrowing until stronger cash flow and asset growth are demonstrated.

2. Financial Strength:
   The balance sheet reflects a micro-scale operation with fixed assets under £1,000 and net assets of £267. Total assets less current liabilities have declined from £588 in 2023 to £267 in 2024, indicating some erosion of capital. The business remains solvent but with minimal equity buffer, which could be vulnerable to unforeseen expenses or cash flow disruptions. Shareholders’ funds have diminished, and the company is operating with very limited retained earnings. The small size and narrow asset base limit financial resilience.

3. Cash Flow Assessment:
   Current assets decreased sharply from £1,622 to £62, while current liabilities also decreased but remain high at £623, resulting in a negative net working capital of -£561 (reversing the prior positive £26). This suggests potential liquidity stress, with the company possibly relying on short-term financing or delayed payments to meet obligations. The low cash equivalent and debtor levels raise concerns about the ability to cover creditors on time without additional funding or improved cash inflows. Monitoring cash flow generation and working capital management will be critical.

4. Monitoring Points:

• Liquidity ratios (current ratio and quick ratio) and trends in working capital.
• Timeliness of supplier payments and aging of creditors.
• Cash flow statements to verify operational cash generation.
• Any changes in fixed asset investment or financing arrangements.
• Confirmation of no adverse director or credit conduct.
• Business growth indicators such as client intake or revenue development given the residential care industry.