Company Number: 14238307

Analysis Date: 2025-07-29 13:42 UTC

1. Credit Opinion: APPROVE
   IRSHAD TRADING LTD demonstrates a solid financial position with positive net assets and no current liabilities, indicating a strong ability to meet debt obligations. The company is active, recently incorporated in 2022, and operates in the advertising agency sector, with steady growth in fixed and current assets. The absence of overdraft or short-term debt points to prudent financial management. Director ownership concentration from a single individual with full control suggests clear decision-making but requires monitoring for governance risks.

2. Financial Strength:
   The micro-entity reports net assets of £315,800 at the year ending July 2024, up from £301,200 in the previous two years, reflecting modest but consistent growth. Fixed assets increased slightly to £250,000, and current assets improved from £55,000 to £65,000. Crucially, there are zero current liabilities, yielding a strong net current asset position of £65,800, which supports operational liquidity. Shareholders’ funds equal net assets, confirming no external debt financing. The balance sheet is healthy and shows no signs of financial distress.

3. Cash Flow Assessment:
   Current assets are predominantly sufficient to cover short-term obligations, with net current assets positive and growing. The absence of creditors due within one year suggests minimal trade payables or borrowings, reducing liquidity risk. The company’s working capital position is strong for its size, supported by an increase in current assets year-on-year. While detailed cash flow statements are not provided, the available data implies conservative cash management and strong liquidity.

4. Monitoring Points:

• Maintain oversight on director concentration risk, given the 75-100% ownership and control by Mr. Asif Butt.
• Monitor growth in current liabilities or any new debt facilities that might impact liquidity.
• Watch for changes in employee numbers or operating costs, as the workforce increased from 8 to 9, which may affect future cash flows.
• Keep track of the company’s revenue and profitability trends when available to ensure continued capacity to service any credit extended.