NUSANTARA LTD

Executive Summary

Nusantara Ltd is a very small, financially fragile company with minimal net assets and tight liquidity, limiting its ability to service debt or withstand financial stress. The absence of detailed profit and loss information and the minimal equity base present significant credit risk. Credit facilities are not recommended without material financial strengthening or collateral provision.

NUSANTARA LTD - Analysis Report

Company Number: 13164980

Analysis Date: 2025-07-20 18:55 UTC

1. Credit Opinion: DECLINE
   Nusantara Ltd is a very small, low-asset company with minimal net assets (£100) and no material fixed assets or reserves. The balance sheet shows net current assets of only £100, indicating extremely tight working capital. The company has no debtors and current liabilities almost equal to current assets, signaling limited liquidity buffer. No profit and loss data is provided, and the accounts are abridged and unaudited, limiting insight into operational performance. Given the very thin equity base and negligible net assets, the company currently lacks financial strength to reliably service debt or absorb economic shocks. The director and sole shareholder, Mr Qumar Islam, controls 100%, but there is no evidence of financial robustness or growth trajectory. Therefore, credit facilities are not advisable at this stage without substantial financial improvement or additional collateral.

2. Financial Strength:
   The company’s financial position is very weak. Shareholders’ funds stand at only £100, with no retained earnings or reserves. Current liabilities (£9,206) nearly offset current assets (£9,306), leaving just a £100 net current asset position. The company appears to operate with minimal capital and no fixed assets. Cash balances have increased from £2,076 in 2023 to £9,306 in 2024, but this is still minimal in absolute terms and matched by liabilities. The balance sheet is essentially break-even, indicating no financial cushioning. This thin capitalization and lack of asset backing present a fragile financial foundation.

3. Cash Flow Assessment:
   Cash on hand is minimal and closely matches current liabilities, suggesting very limited liquidity. There is no evidence of outstanding debtors to support working capital, and the company has no reported long-term debt. The absence of detailed profit and loss accounts restricts analysis of cash flow from operations, but the balance sheet indicates cash flow constraints. The company likely relies on the director’s financial support, as seen by advances and credits to directors that have been repaid. Overall, liquidity is tight, and working capital management appears marginal, risking difficulties in meeting short-term obligations without external funding.

4. Monitoring Points:

• Monitor upcoming filings for profit and loss data to assess operational performance.
• Watch for increases in net current assets and positive retained earnings development.
• Track liquidity ratios, especially current ratio and quick ratio, to ensure ability to meet liabilities.
• Observe any changes in director loans or external financing that may impact credit risk.
• Review any strategic business developments or capital injections that could improve financial resilience.
• Ensure timely filing of accounts and confirmation statements to avoid regulatory risk.