K S SEHGAL INVESTMENTS LTD

Executive Summary

K S Sehgal Investments Ltd is a dormant company with a weak and deteriorating financial position characterized by negative net assets and insufficient liquidity. The lack of trading activity and operating cash flow limits its ability to service debt or meet financial obligations. Credit facilities are not recommended at this stage without significant improvement in financial performance and capital structure.

K S SEHGAL INVESTMENTS LTD - Analysis Report

Company Number: 14111069

Analysis Date: 2025-07-29 18:16 UTC

1. Credit Opinion: DECLINE
   K S Sehgal Investments Ltd currently shows a persistently negative net asset position with net liabilities of £26,678 as of the latest accounts (May 2024). The company is categorized as dormant, indicating minimal or no trading activity, and has negative working capital that has worsened slightly over the last two years. The absence of trading profit and continued net liabilities suggest limited capacity to service debt or meet financial obligations. There is no evidence of revenue generation or operational cash flow to support credit extension.

2. Financial Strength:
   The balance sheet reveals a weak financial structure with current liabilities (£74,700) exceeding current assets (£48,022), resulting in negative net current assets (-£26,678). Total net liabilities have increased compared to previous years, reflecting an ongoing erosion of equity. The share capital is minimal (£300), and the company relies on external funding or shareholder support, which has not improved the financial position. Being dormant and with only one employee, the asset base is minimal, and the company shows no signs of asset backing to mitigate creditor risk.

3. Cash Flow Assessment:
   Cash flow appears constrained due to the dormant status and negative working capital. The company’s current liabilities outstrip current assets, indicating potential liquidity stress. There is no reported turnover or profit, suggesting no operating cash generation. This condition reduces confidence in the company’s ability to meet short-term liabilities or service new debt without additional capital injection or operational turnaround.

4. Monitoring Points:

• Track the company’s filing of accounts and confirmation statements to ensure compliance.
• Monitor any change in trading status from dormant to active, with focus on revenue generation and profitability.
• Watch for improvements in net assets and working capital position.
• Observe any changes in ownership or introduction of new capital injections.
• Keep an eye on director conduct or any adverse regulatory actions.