BHARUN INC LTD

Executive Summary

BHARUN INC LTD exhibits negative net assets and insufficient liquidity to meet current liabilities, reflecting a fragile financial position. The company’s lack of operational cash flow and reliance on significant long-term liabilities without equity buffer raises credit risk concerns. Without clear evidence of capital support or improved cash flow, credit approval is not recommended at this time.

BHARUN INC LTD - Analysis Report

Company Number: 13815183

Analysis Date: 2025-07-29 14:57 UTC

1. Credit Opinion: DECLINE

BHARUN INC LTD presents a high credit risk profile. The company has operated at negative equity since inception, with net liabilities increasing slightly from £5,756 in 2022 to £6,229 in 2023. Current liabilities exceed cash on hand by a large margin (£141,149 liabilities vs. £2,220 cash), indicating a significant working capital deficiency. The absence of employees and minimal liquidity raise concerns about the company’s ability to meet short-term obligations. Without evidence of incoming cash flows or external funding, the risk of insolvency is elevated. Furthermore, the company’s dependence on a single controlling shareholder/director without a clear profit track record or audit reduces confidence in management’s financial stewardship. Therefore, credit facilities should be declined unless substantial mitigants or guarantees are provided.

2. Financial Strength:

The balance sheet shows fixed tangible assets valued at £132,950 with no depreciation charged, suggesting assets are held at cost and may lack liquidity. Net current assets are positive but minimal (£1,970), primarily from a small cash balance and nominal creditors falling due within one year (£250). However, significant long-term liabilities (£141,149) result in negative shareholders’ funds of £6,229. The company has not generated retained earnings to offset liabilities, indicating limited capital buffer. Overall, the financial structure is weak, with liabilities exceeding equity and limited current asset coverage.

3. Cash Flow Assessment:

Cash reserves are very low (£2,220), insufficient to cover current liabilities (£141,149). The company reports no employees and no disclosed revenue or profit figures, implying lack of operational cash inflows. The minimal working capital and low liquidity suggest the company may struggle to fund day-to-day operations or service debt. Absence of cash flow statements prevents a full assessment but the static cash position year-over-year and high liabilities point to cash flow constraints.

4. Monitoring Points:

• Track changes in net current assets and cash balances to identify any improvement in liquidity.
• Monitor any new borrowing or capital injections that might affect solvency.
• Review future account filings for profit generation or reduction in liabilities.
• Observe director actions or PSC changes that might signal restructuring or risk.
• Watch for overdue filings or negative credit events such as administration or receivership.