Company Number: 13756882

Analysis Date: 2025-07-29 20:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   LASHMI LTD demonstrates improving financial metrics and asset growth, indicating positive business development. However, the presence of significant medium-to-long-term finance lease liabilities (£19,873) and rising tax liabilities require careful monitoring. The company’s ability to meet current obligations is sound, but the medium-term debt servicing capacity should be verified before extending substantial credit.

2. Financial Strength:
   The company’s net assets have grown substantially from £17,891 in 2022 to £65,347 in 2023, reflecting enhanced equity and retained earnings (£65,247). Fixed assets increased significantly, mainly due to motor vehicles acquired via finance leases. Current assets have more than doubled to £48,880, driven by increased debtors (£25,014) and cash balances (£20,366). Current liabilities rose to £20,839, largely due to taxation and social security obligations (£17,990). Overall, the balance sheet reflects a growing company with expanding asset base but with increased leverage through hire purchase agreements.

3. Cash Flow Assessment:
   Cash at bank (£20,366) combined with short-term receivables and stock provides a healthy liquidity buffer relative to current liabilities (£20,839), resulting in positive net current assets of £59,502. However, the substantial tax and social security creditor balance suggests timing of payments should be managed prudently. The company appears to have manageable working capital, but the medium-term cash flow impact of finance lease commitments must be assessed to ensure ongoing liquidity.

4. Monitoring Points:

• Track timely settlements of tax liabilities to avoid penalties.
• Monitor the servicing of finance lease obligations and their impact on cash flow.
• Watch debtor aging and collection efficiency to maintain liquidity.
• Observe profitability trends to ensure continued equity growth and dividend sustainability.
• Review any changes in directors’ conduct or ownership that could affect governance.