ARKA HOUSE MANAGEMENT LIMITED

Executive Summary

ARKA HOUSE MANAGEMENT LIMITED is a micro-entity with extremely limited financial history and negligible net assets, reflecting an early-stage business with unproven creditworthiness. The current balance sheet and cash flow position do not support extending credit at this time. Close monitoring of future financial performance and operational development is recommended before reconsidering credit facilities.

ARKA HOUSE MANAGEMENT LIMITED - Analysis Report

Company Number: 14721350

Analysis Date: 2025-07-20 16:35 UTC

1. Credit Opinion: DECLINE
   ARKA HOUSE MANAGEMENT LIMITED is a newly incorporated micro-entity with minimal financial history and extremely limited net assets (£1). The company’s balance sheet shows current assets almost exactly equal to current liabilities, resulting in negligible working capital. Absence of profitability data and operating cash flows, combined with no employees and sole ownership by a single director, indicate very early-stage operations with no proven ability to service debt or meet commercial obligations. Given these factors, extending credit poses a high risk without further operational or financial track record.

2. Financial Strength:
   The company’s net assets stand at £1, reflecting an extremely weak capital base. Current assets are £40,709 but are almost entirely offset by current liabilities of £40,708, yielding a net current asset position of just £1. There are no fixed assets reported. This lack of tangible equity or buffer severely limits financial flexibility. The micro-entity status implies limited disclosure and small scale, offering little insight into future profitability or reserves. Overall, the balance sheet is fragile and does not support additional credit exposure.

3. Cash Flow Assessment:
   With no employees and early-stage incorporation, there is no evidence of positive operating cash flows or liquidity beyond the reported current assets. The near-zero net working capital position suggests the entity is just breaking even on current obligations. Without historical cash flow statements or profit and loss detail, it is impossible to confirm the company’s ability to generate sufficient cash to repay debt or sustain operations. The absence of cash reserves or retained earnings further undermines liquidity.

4. Monitoring Points:

• Track subsequent annual accounts for any improvements in net assets, profitability, and cash flows.
• Monitor director and shareholder changes given sole control by Mr. Baljeet Chima.
• Review any material changes in liabilities that could impact liquidity.
• Watch for any overdue filings or indications of distress such as late submissions or director resignations.
• Evaluate future business activity and contracts to assess operational viability and revenue generation.