Company Number: 14762653

Analysis Date: 2025-07-19 12:14 UTC

Financial Health Assessment: HARI OM BUILDING LIMITED

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1. Financial Health Score: D

Explanation:
The company exhibits significant signs of financial distress, primarily due to net liabilities and negative shareholders' funds. While it is still active and compliant with filings, the balance sheet reveals a concerning liquidity and solvency position. This score reflects the early stage of operational challenges that require urgent management attention to avoid deterioration.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£211,063	Indicates investment in long-term assets; healthy for asset base.
Current Assets	£1,409	Very low liquid resources to cover short-term obligations; warning sign.
Current Liabilities	£91,103	Short-term debts significantly exceed current assets, leading to negative working capital.
Net Current Assets	-£89,694	Negative working capital ("symptom of cash flow distress") indicating potential liquidity problems.
Creditors due after one year	£125,747	Long-term liabilities exceeding total assets less current liabilities; suggests heavy debt burden.
Net Assets (Total Equity)	-£4,378	Net liabilities indicate insolvency on a balance sheet basis, a critical "symptom of financial strain."
Shareholders’ Funds	-£4,378	Negative equity implies that the company owes more than it owns, a serious red flag.
Employees	0 (including directors)	No employees may mean low operational activity or pre-revenue stage.

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3. Diagnosis

The financial "vital signs" of HARI OM BUILDING LIMITED reveal critical symptoms:

• Liquidity distress: The company has very low current assets (£1,409) against substantial short-term liabilities (£91,103), leading to a net current liability position of nearly £90,000. This is akin to a patient with poor blood circulation—insufficient liquid assets to meet immediate obligations.

• Solvency concerns: Net liabilities of £4,378 show that total liabilities exceed total assets, meaning the company is technically insolvent at the balance sheet date. This is a serious underlying business health issue, much like vital organ failure in a patient.

• Heavy debt load: The presence of long-term creditors (£125,747) exceeding net assets highlights ongoing obligations that the company may struggle to service without adequate cash flow or asset sales.

• No operational workforce: The absence of employees suggests minimal or no current trading activity, which may further strain cash flow generation.

Overall, the company is in an early but precarious state of financial health. The "symptoms" suggest that without corrective measures, the company risks worsening liquidity and solvency, potentially leading to insolvency proceedings if these issues persist.

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4. Recommendations

To improve financial wellness and stabilize the company’s condition, the following actions are advised:

• Enhance cash flow management: Immediate focus on increasing current assets, especially cash, is critical. This could include collecting receivables faster, delaying non-essential payments, or injecting additional capital.

• Restructure or refinance debt: Engage with creditors to negotiate more favorable terms, such as extending payment periods or reducing interest rates, to alleviate short-term pressure.

• Evaluate asset utilisation: Consider selling non-core fixed assets if possible to generate cash and improve working capital.

• Operational review: Assess business model viability given the lack of employees and current activity. If trading is limited, explore strategies to ramp up revenue or reduce overheads.

• Regular financial monitoring: Implement monthly cash flow forecasting and financial reviews to detect early warning signs and react proactively.

• Seek professional advice: Early consultation with insolvency practitioners or financial advisors can provide tailored restructuring options to safeguard business continuity.

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