Company Number: 13134505

Analysis Date: 2025-07-29 20:02 UTC

1. Credit Opinion: DECLINE
   REHMAT SPICE LTD presents significant credit risk due to persistent and worsening negative net assets and net current liabilities over recent years. The company’s balance sheet shows a deteriorating financial position with net liabilities increasing from £1,352 in 2023 to £18,449 in 2025. The large current liabilities (£36,041) predominantly represent director loans, indicating reliance on related-party funding rather than external creditworthiness. Given this, the ability to meet debt obligations from operating cash flows appears weak, and the company is financially distressed.

2. Financial Strength:
   The company’s tangible fixed assets stand at £13,500 with accumulated depreciation, but these are insufficient to offset liabilities. The net current assets are deeply negative (£-30,564 in 2025), reflecting a working capital deficiency. Shareholders’ funds are negative and have deteriorated markedly over three years, indicating accumulated losses and erosion of capital. There is no indication of external long-term debt apart from minor tax/social security liabilities after one year. The company is classified as a micro entity but shows financial instability inconsistent with typical micro business profiles.

3. Cash Flow Assessment:
   Cash at bank is minimal (£1,352) compared to current liabilities of £36,041, resulting in liquidity stress. The negative net current assets and reliance on director loans suggest constrained operational cash flow and limited ability to service external debt or absorb financial shocks. No evidence of profitability or positive cash generating capacity is provided in the accounts, increasing risk of cash flow shortfall.

4. Monitoring Points:

• Regular review of updated financial statements for signs of improved liquidity or profitability.
• Monitor director loans and any related party transactions for sustainability and repayment plans.
• Assess cash flow forecasts and working capital management improvements.
• Watch for any restructuring, refinancing, or capital injections to strengthen the balance sheet.
• Track timely filing of accounts and confirmation statements to avoid compliance risks.