ROHIT BHATIA LTD

Executive Summary

ROHIT BHATIA LTD, a micro private limited company in domestic construction, shows improving financial strength with positive net assets and working capital growth over the last two years. The company maintains good compliance and liquidity, supporting its ability to service modest credit facilities. Continued monitoring of liquidity and operational expansion is recommended to ensure ongoing creditworthiness.

ROHIT BHATIA LTD - Analysis Report

Company Number: 13676519

Analysis Date: 2025-07-20 18:45 UTC

1. Credit Opinion: APPROVE
   ROHIT BHATIA LTD demonstrates stable financial footing for a micro-entity in the construction sector. The company shows a positive net asset position, growing net current assets, and increasing shareholders’ funds, indicating sound financial management and capacity to meet short-term obligations. No overdue filings or director disqualifications are noted, suggesting good compliance and governance. Given its micro size and modest scale, credit exposure should be limited; however, the company appears capable of servicing small credit facilities.

2. Financial Strength:
   The balance sheet reveals net assets of £8,485 as of 31 October 2023, doubling from £4,130 the prior year. Current assets increased to £11,475 while current liabilities declined to £2,990, improving working capital significantly. Shareholders’ funds match net assets, showing no external equity dilution. The company operates with minimal fixed assets disclosed, typical for a service-based construction business. This reflects a conservative financial structure with no apparent over-leverage or solvency concerns.

3. Cash Flow Assessment:
   The positive and growing net current assets position (£8,485) indicates adequate liquidity to cover short-term liabilities. The increase in average employee headcount from 2 to 3 suggests modest operational expansion, which may impact working capital needs but appears manageable. Absence of long-term liabilities or debt reported implies limited financial strain from interest or principal repayments. Cash flow generation appears sufficient for operational needs and repayment capacity of small credit lines.

4. Monitoring Points:

• Track continued growth in net current assets and net profit retention to ensure financial resilience.
• Monitor any increase in liabilities or external borrowings that could pressure liquidity.
• Watch for timely filing of accounts and confirmation statements to maintain compliance.
• Assess operational scale and profitability trends as the company grows from micro-entity status.
• Evaluate credit usage against cash flow to avoid overextension, given the small absolute scale of funds.