Company Number: 15014181

Analysis Date: 2025-07-29 13:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DAAR ALI LTD is a newly incorporated micro-entity with limited financial history. The company shows positive net current assets and a small positive net asset position, indicating initial solvency. However, the significant non-current creditor balance (£46,598) and provisions (£900) compared to very minimal equity (£1,387) suggest reliance on external funding or shareholder loans. Given the short operating period and modest scale, credit exposure should be limited and closely monitored. Approval is conditional on obtaining further operational performance data and confirmation of the nature and terms of the creditor balances.

2. Financial Strength:
   The balance sheet shows current assets of £49,210 against creditors due within one year of only £325, yielding strong short-term liquidity. The company’s total assets less current liabilities amount to £48,885, but after including long-term creditors (£46,598) and provisions (£900), net assets are a minimal £1,387. This indicates a leveraged position with thin equity buffer. The micro-entity status limits detailed disclosure, but overall financial strength is weak at this stage due to limited equity and reliance on creditor funding.

3. Cash Flow Assessment:
   The company has adequate working capital with net current assets of £48,885, suggesting sufficient liquidity to meet immediate obligations. However, the bulk of liabilities are long-term creditors that may represent loans or deferred payments, which could strain cash flow if not managed properly. The presence of only one employee and micro scale indicates low operational complexity and potentially low cash burn, but the lack of profit or retained earnings means cash flow generation capacity is unproven.

4. Monitoring Points:

• Track changes in creditor balances, especially long-term liabilities, to assess funding sources and repayment risk.
• Monitor cash flow statements when available for operational cash generation and debt servicing ability.
• Observe any increase in equity or retained earnings in future accounts to strengthen the capital base.
• Watch director Mr. Ali Abbas’s financial stewardship and operational progress given sole control and responsibility.
• Review next accounts filing for evidence of revenue growth, profitability, and improved financial resilience.