DIVYA SAXENA LIMITED

Executive Summary

Divya Saxena Limited currently exhibits weak financial health characterized by negative net assets and increasing creditor obligations, which undermines its ability to service debt. Given its limited assets, minimal cash reserves, and micro-entity scale, the company does not demonstrate sufficient financial strength or liquidity to support credit extension at this time. Close monitoring of solvency improvements or capital restructuring is essential before reconsidering credit facilities.

DIVYA SAXENA LIMITED - Analysis Report

Company Number: 12497691

Analysis Date: 2025-07-29 18:24 UTC

1. Credit Opinion: DECLINE
   Divya Saxena Limited presents a highly concerning financial profile for credit purposes. The company shows significant net liabilities (£29,526 as of 31 March 2024) due to creditors falling due after more than one year, which outweigh its current assets. Despite being a micro-entity, the negative net assets and increasing creditor balances over the last two years indicate poor financial health and risk of non-payment. The lack of positive working capital and the company’s micro size with only one employee also raise concerns about operational scale and resilience. Without evidence of improving cash flows or strengthened equity, extending credit would be imprudent at this stage.

2. Financial Strength:

• The balance sheet reveals current assets of only £357 against current liabilities of £29,883 (long-term creditors), resulting in a net liability position of £29,526.
• Shareholders’ funds are negative, reflecting accumulated losses or debt exceeding equity.
• Over the past two years, liabilities have increased markedly from £16,961 to nearly £30,000, deteriorating the company’s solvency position.
• The company holds minimal fixed and current assets, limiting collateral value.

3. Cash Flow Assessment:

• Current assets are negligible, almost entirely cash or equivalents, insufficient to cover short-term obligations.
• Negative working capital and substantial long-term payables suggest strained liquidity and poor cash flow management.
• The consistent presence of only one employee and minimal turnover (implied by micro-entity status) highlight limited operating cash inflows.

4. Monitoring Points:

• Watch for any material reduction in long-term creditors or injection of equity capital to improve solvency.
• Monitor cash balances and current liabilities closely for signs of liquidity stress.
• Track any changes in business model or operational scale that could enhance revenue generation.
• Review director’s reports or subsequent filings for strategic plans addressing financial weaknesses.