Company Number: 15199827

Analysis Date: 2025-07-29 19:25 UTC

1. Credit Opinion: APPROVE with reservations
   M S DAD PHARMA LTD is a micro-entity private limited company incorporated in October 2023, operating as a dispensing chemist in specialised stores (SIC 47730). The company shows a positive net current asset position (£28,773) and no overdue filings, indicating initial compliance and sound short-term liquidity. However, given its very recent incorporation and limited operating history (one year), credit exposure should be cautiously sized and subject to ongoing monitoring until a longer financial track record is established.

2. Financial Strength:
   The company’s balance sheet reflects net assets of £28,773, all represented by net current assets, with no long-term liabilities or fixed assets reported. Shareholders’ funds equal net assets, indicating no external debt and full equity funding. The absence of fixed assets suggests the business is asset-light, typical for a pharmacy dispensing entity, but also means limited collateral for secured lending. Overall, the balance sheet is clean but very modest in size.

3. Cash Flow Assessment:
   Current assets of £68,728 against current liabilities of £39,955 yield net current assets of £28,773, a positive working capital buffer that supports short-term obligations. The liquidity appears adequate for a small operation with only one employee. Nevertheless, the company’s cash flow profile is untested over multiple periods, and no profit & loss information is available, so assessment of cash generation and debt servicing capacity remains incomplete.

4. Monitoring Points:

• Monitor future annual accounts for profitability trends and cash flow adequacy.
• Watch for any increases in liabilities or deterioration in net current assets.
• Review management’s ability to scale operations and maintain compliance with regulatory requirements for pharmacies.
• Verify if additional funding is required as the business grows and how that impacts leverage and liquidity.
• Track director’s ongoing engagement and any changes in ownership or control that might affect governance.