KRISH R LIMITED

Executive Summary

KRISH R LIMITED is a very young micro-entity with a leveraged balance sheet and significant working capital deficits, showing marginally positive net assets after initial losses. While the fixed asset base is stable, the company’s liquidity is weak, posing repayment risks. Credit approval is recommended conditionally with close monitoring of liquidity and debt service capability.

KRISH R LIMITED - Analysis Report

Company Number: 13928934

Analysis Date: 2025-07-20 12:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   KRISH R LIMITED is a very young micro-entity incorporated in 2022, operating in the real estate letting sector. The company shows a very modest net asset position (£91 positive at 2024 year-end) after previously negative equity. The balance sheet reveals a high level of long-term creditors (£120,995) nearly matching fixed assets, indicating leverage primarily through non-current liabilities. The company's current liabilities exceed current assets by a large margin, signaling working capital constraints. Given the early stage and limited financial data, credit approval should be conditional on enhanced monitoring and possibly requiring personal guarantees or security due to thin equity and weak liquidity.

2. Financial Strength:

• Fixed assets stable at £209,317 over three years, suggesting property or leased assets consistent with their SIC code.
• Current assets increased slightly to £6,342 but remain insufficient to cover short-term liabilities of £94,573, resulting in net current liabilities of £88,231.
• The company carries significant non-current liabilities (£120,995), which creates leverage but has not deteriorated year-over-year.
• Shareholders' funds improved from a negative £3,536 to a marginal positive £91, indicating minimal retained earnings or capital injections but still very thin equity buffer.

3. Cash Flow Assessment:

• The company’s current ratio is well below 1 (approx. 0.07), reflecting poor short-term liquidity and potential difficulty meeting immediate obligations without refinancing or cash inflows.
• Working capital deficit is substantial and persistent, showing limited operational cash flow or reliance on creditor funding.
• No P&L details are provided, making profitability and cash generation difficult to assess; however, improved equity suggests some positive movement.
• The micro-entity status means limited disclosure, but the tight liquidity position poses risk for loan servicing without external support.

4. Monitoring Points:

• Track improvements in working capital and current ratio to ensure the company can meet short-term debts.
• Monitor any changes in long-term debt levels and repayment schedules to assess refinancing risk.
• Watch for filings of next accounts and confirmation statements for timely compliance and transparency.
• Review any changes in asset valuations or impairments that could affect net assets.
• Evaluate management’s plans for improving profitability and liquidity, given the thin equity base.