MOKSHA GROUP LIMITED

Executive Summary

Moksha Group Limited shows growth in net assets and investment in fixed assets but faces liquidity challenges due to a significant drop in current assets and rising current liabilities. The company’s ability to meet short-term obligations requires careful oversight, though its overall financial position is stable for a micro-entity. Conditional credit approval is recommended, contingent on regular liquidity and cash flow monitoring.

MOKSHA GROUP LIMITED - Analysis Report

Company Number: 13188223

Analysis Date: 2025-07-20 14:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Moksha Group Limited demonstrates positive net assets and shareholder funds growth, signaling financial stability. However, concerns arise due to the sharp reduction in current assets from £91,767 in 2022 to £20,167 in 2023, alongside a doubling of current liabilities to £72,532. This mismatch reduces net current assets substantially and may pressure liquidity. The presence of long-term liabilities (£6,645) further impacts financial flexibility. Approval is conditional upon monitoring liquidity management closely and assessing cash flow adequacy to meet short-term obligations.

2. Financial Strength:
   The company’s net assets increased from £55,372 in 2022 to £62,647 in 2023, which reflects some retained earnings or asset revaluation. Fixed assets rose significantly from £583 to £121,657, indicating possible investment in long-term assets, which could support future operations but may reduce cash availability in the short term. Share capital is nominal (£2.00), so equity strength largely rests on accumulated reserves. Overall, the balance sheet shows a modestly growing company with adequate capitalization but some asset-liability mismatches.

3. Cash Flow Assessment:
   Current assets dropped markedly, primarily cash or equivalents, from £91,767 to £20,167, while current liabilities doubled to £72,532. This results in negative net current assets of £52,365 in 2023 compared to positive £54,789 the prior year, suggesting working capital constraints and potential liquidity stress. The company’s small employee base (2) helps contain overheads, but the deteriorated short-term liquidity requires close monitoring. The existence of creditors due after one year (£6,645) adds some medium-term financial obligations.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio to track short-term payment capacity.
• Cash flow from operations: Ensure ongoing positive cash generation to meet liabilities.
• Debtor days and creditor days: Monitor working capital cycle efficiency.
• Asset utilization: Review fixed asset investments for return on capital.
• Any change in liabilities structure, especially short-term debts.
• Director’s management of cash resources and debt servicing.