ASMITA & A 3 LIMITED

Executive Summary

ASMITA & A 3 LIMITED exhibits ongoing financial weakness with negative net assets and poor liquidity, raising concerns about its ability to service debt or sustain operations without additional capital support. The company’s financial position has slightly improved recently but remains fragile, warranting a decline on credit grounds at this stage. Close monitoring of cash flows and balance sheet changes is recommended if credit reconsideration is necessary.

ASMITA & A 3 LIMITED - Analysis Report

Company Number: 12697227

Analysis Date: 2025-07-20 15:58 UTC

1. Credit Opinion:
   DECLINE. ASMITA & A 3 LIMITED demonstrates significant financial distress with negative net assets for multiple years, including the latest fiscal year ending 31 March 2024. The company’s current liabilities consistently exceed current assets, resulting in a negative working capital position and net liabilities of £13,403 in 2024, although this is an improvement from previous years. The absence of audit and reliance on micro-entity regime disclosures limit financial transparency. Given the ongoing losses, weak liquidity, and lack of substantial fixed assets, the company appears unable to reliably service additional debt or financial obligations at this stage.

2. Financial Strength:
   The balance sheet reveals continued erosion of equity with shareholders’ funds negative at £13,403 in 2024, improving slightly from a deficit of £21,599 in 2023. Fixed assets have decreased sharply from £242,767 in 2023 to £5,000 in 2024, indicating possible asset disposals or impairments. Current liabilities remain high relative to current assets, causing net current liabilities of £18,403. Total liabilities exceed total assets, and no long-term debt is reported for 2024, suggesting prior long-term creditors were settled or reclassified. Overall, the company’s financial position is weak and fragile.

3. Cash Flow Assessment:
   The company’s liquidity is poor, with current assets of only £2,469 against current liabilities of £20,872, resulting in a negative working capital position that raises concerns about the company’s ability to meet short-term obligations. The lack of cash or equivalents disclosure limits deeper cash flow insights, but the persistent negative net current assets imply cash flow constraints. The company’s micro-entity status and single-employee structure also limit operational scale, likely restricting cash inflows.

4. Monitoring Points:

• Track quarterly or interim cash flow statements if available to gauge liquidity improvements.
• Monitor any asset disposals or capital injections by the shareholder to strengthen the balance sheet.
• Review changes in current liabilities and creditor payment terms for signs of financial stress or renegotiations.
• Observe any updates to filing status or director changes signaling management actions to address financial difficulties.