MAK BUILDING SERVICES PVT LTD

Executive Summary

MAK BUILDING SERVICES PVT LTD is a micro entity with significant financial weakness, evidenced by negative net assets and inadequate working capital. Its current financial position and liquidity profile do not support a recommendation for credit approval. Close monitoring of cash flows, debt levels, and capital structure is essential before reconsidering credit facilities.

MAK BUILDING SERVICES PVT LTD - Analysis Report

Company Number: 13586570

Analysis Date: 2025-07-29 12:56 UTC

1. Credit Opinion: DECLINE
   MAK BUILDING SERVICES PVT LTD demonstrates a weak financial position with significant net liabilities (£18,734) as of the latest accounts. The company’s current liabilities substantially exceed current assets, indicating poor liquidity and an inability to cover short-term debts. The negative shareholders’ funds and the increasing creditor amounts falling due after more than one year raise concerns about ongoing solvency and repayment capacity. Given the micro entity status and minimal asset base, the company appears financially fragile and unable to comfortably service debt or credit lines at this stage.

2. Financial Strength:
   The balance sheet reveals net current assets of only £2,812 against total creditors due after one year of £21,546, resulting in negative net assets of £18,734. There are no fixed assets, and the company operates with minimal working capital. The deterioration from net assets of £3,717 in 2022 to negative £18,734 in 2023 suggests a worsening financial trajectory. The company is effectively insolvent on a balance sheet basis, which signals weak capitalization and limited financial resilience.

3. Cash Flow Assessment:
   Current assets of £2,812 (likely mostly cash or receivables) are insufficient to meet current liabilities of £21,546. This mismatch indicates a liquidity squeeze and potential cash flow difficulties. The company’s minimal scale (one employee) and low asset base imply limited operational cash generation. The lack of fixed assets also suggests little collateral available for secured lending. Working capital is negative, implying constrained day-to-day funding capability.

4. Monitoring Points:

• Improvement in net asset position and working capital levels
• Reduction in long-term creditors or restructuring of debt to manageable levels
• Evidence of positive cash flow from operations and increased turnover
• Directors’ actions to recapitalize or strengthen equity base
• Timely compliance with filing obligations and no adverse credit events or director disqualifications