MOKSHA'S SOLUTIONS PVT LTD

Executive Summary

MOKSHA'S SOLUTIONS PVT LTD shows severe financial distress with negative net assets and substantial creditor reliance, undermining creditworthiness. Liquidity is critically weak, and the company’s ability to meet financial obligations is highly uncertain. Credit approval is not recommended without significant risk mitigation measures.

MOKSHA'S SOLUTIONS PVT LTD - Analysis Report

Company Number: 14282113

Analysis Date: 2025-07-29 19:36 UTC

1. Credit Opinion: DECLINE
   MOKSHA'S SOLUTIONS PVT LTD exhibits significant financial weaknesses that undermine its ability to service debt or commercial obligations. The company shows deep negative net assets (£-206,481) and net current liabilities (£-54,745) as of the latest financial year end (31 August 2024), indicating poor solvency and liquidity. The large increase in creditors falling due after more than one year (£151,736) suggests a reliance on longer-term liabilities, which raises concerns about repayment capacity and financial stability. Additionally, the business is relatively new (incorporated August 2022) with minimal current assets (£615) to meet current liabilities. The rapid growth in liabilities without commensurate asset growth or equity support indicates financial distress. Given these factors, approval for credit facilities is not recommended without significant mitigating information or guarantees.

2. Financial Strength:
   The balance sheet shows a severely weakened financial position. The company’s net liabilities worsened from £-2,576 in 2023 to £-206,481 in 2024, driven predominantly by a sharp increase in long-term creditors (£151,736) and short-term creditors (£55,360). Current assets remain negligible and unchanged (~£600), while employee headcount increased to 22, indicating rising operational costs likely funded by creditor financing or shareholder loans. Shareholders’ funds are deeply negative, indicating erosion of capital and accumulated losses. The micro-entity status limits the extent of financial detail, but the available data points to a fragile balance sheet with high risk of insolvency if cash flow issues persist.

3. Cash Flow Assessment:
   Liquidity is critically constrained. Net current assets are negative at £-54,745, revealing insufficient working capital to cover short-term obligations. Current liabilities exceed current assets by a large margin, and the company holds minimal cash or equivalents. The absence of a profit and loss account in the filings restricts insight into operational cash generation, but the balance sheet and increasing creditor balances imply cash flow deficits. The company’s ability to meet immediate payment demands or service debt without additional capital injections is doubtful.

4. Monitoring Points:

• Monitor creditor ageing and any defaults or late payments.
• Track changes in net current assets and net liabilities for signs of improvement or further deterioration.
• Watch for filing of profit and loss accounts to assess operational performance.
• Review any director or shareholder injections of capital or guarantees provided.
• Assess management actions toward restructuring liabilities or improving cash flow.
• Confirm compliance with filing deadlines and regulatory requirements to avoid penalties.