Company Number: 15169837

Analysis Date: 2025-07-20 19:15 UTC

1. Credit Opinion: APPROVE with monitoring.
   Parikrama Limited is a newly incorporated IT consultancy company showing a sound initial financial position. With net current assets of £38,319 and positive shareholders’ funds, the company demonstrates an adequate ability to meet short-term liabilities. The sole director has full ownership and control, indicating clear management oversight. However, as this is the first accounting period covering just over six months since incorporation, ongoing trading performance and cash flow generation should be closely monitored for consistency and growth before extending larger credit facilities.

2. Financial Strength:
   The balance sheet is healthy with total net assets of £38,319, all financed by equity, indicating no external debt at this stage. The company holds £81,232 in current assets, primarily cash (£70,444) and trade-related receivables (£10,788), against current liabilities of £42,913. The positive net current assets (£38,319) highlight a comfortable short-term solvency position. Absence of fixed assets is typical for a service-based startup.

3. Cash Flow Assessment:
   Cash reserves of £70,444 provide strong liquidity to support operational needs and immediate creditor payments. Debtors are low (£10,788) and primarily accrued income, reflecting early-stage billing cycles. Creditors of £42,913 include trade creditors and tax liabilities, which the company can cover comfortably with available cash. Working capital is solid, reducing short-term liquidity risk.

4. Monitoring Points:

• Revenue growth and profitability in subsequent periods to confirm sustainable cash generation.
• Timeliness of debtor collections and creditor payments to maintain working capital health.
• Any increase in liabilities or capital expenditure that might impact liquidity.
• Director’s ongoing commitment and any changes in ownership or management.
• Compliance with filing deadlines and accuracy of financial reporting as the company matures.