RESHMA BESSESAR LTD

Executive Summary

Reshma Bessesar Ltd is a newly formed micro company with a very weak balance sheet and minimal net assets, relying heavily on director funding. The company’s liquidity is strained, with cash just sufficient to cover immediate liabilities and questionable dividend payments. Given the absence of trading history and financial resilience, credit approval is not recommended at this time.

RESHMA BESSESAR LTD - Analysis Report

Company Number: 12767388

Analysis Date: 2025-07-29 19:02 UTC

1. Credit Opinion: DECLINE
   Reshma Bessesar Ltd is a very recently incorporated micro company with minimal financial history and extremely limited net assets (£1). The balance sheet shows current liabilities (£25,150) nearly equal to current assets (£25,151), resulting in negligible working capital (net current assets £1). Significant amounts are owed in corporation tax (£8,202) and director’s loan account (£16,348), indicating reliance on director funding rather than operational cash flow. There is no turnover or profit data disclosed, and the company paid dividends of £35,166 despite minimal equity and no clear profitability, raising concerns about cash flow management and sustainability. The company operates in social work activities without accommodation, a sector that may have variable income streams. Overall, the financial position and lack of trading history do not support extending credit at this stage.

2. Financial Strength:
   The company’s balance sheet is extremely weak. Fixed assets have been fully depreciated to zero. Current assets consist solely of cash (£25,151), which just covers current liabilities (£25,150), leaving no buffer for operational needs. The net asset position of £1 reflects the nominal share capital only. The director’s loan account is substantial relative to equity, suggesting external funding dependency. Absence of accumulated profits or retained earnings highlights that the company has not generated internal funds. This fragile balance sheet signals very limited financial strength and insufficient capital base to absorb shocks or support loan repayment.

3. Cash Flow Assessment:
   Cash flow appears very constrained given that cash on hand barely meets current liabilities. The director’s loan indicates reliance on shareholder support to finance operations. The payment of dividends totaling £35,166 despite minimal net assets and no reported profits suggests potential cash extraction that may impair liquidity. Without detailed profit and loss data, it is unclear if any positive cash inflows are generated from trading activities. The company’s liquidity position is precarious, with no demonstrated ability to service debt or build working capital beyond immediate obligations.

4. Monitoring Points:

• Filing of subsequent accounts and confirmation statements to track financial progress and compliance.
• Turnover and profit generation trends to assess operational viability and cash inflows.
• Changes in director’s loan account and dividend payments to monitor cash flow management and potential shareholder funding risks.
• Status of corporation tax liabilities and other accruals to evaluate timely settlement of statutory obligations.
• Any changes in net assets and working capital position to detect improvement or deterioration in financial health.