Company Number: 13277599

Analysis Date: 2025-07-20 11:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Sasiram Limited shows evidence of business growth through increased fixed assets and improved net assets; however, there is a significant long-term loan liability (£538,000) compared to modest net assets (£3,356). The company’s ability to service this debt depends heavily on cash flow generation from its real estate management activities. Given the large loan from related parties and limited liquidity, credit approval should be conditional on obtaining more detailed cash flow forecasts and confirmation of repayment plans to ensure obligations can be met.

2. Financial Strength:

• Fixed assets have increased substantially from £165,755 in 2023 to £537,916 in 2024, indicating investment in property likely underpinning the business operations.
• Net assets improved from £668 to £3,356, reflecting retained earnings accumulation (£2,688 profit in 2024).
• However, the balance sheet shows a large loan of £538,000 due after more than one year, creating leverage risks.
• Share capital is minimal (£2), which suggests limited equity buffer.
• Current assets are low (£8,779), with cash at £2,550 and debtors at £6,229, while current liabilities are modest (£5,339), resulting in positive net working capital (£3,440).

3. Cash Flow Assessment:

• Cash balances remain low and slightly decreased year-on-year (£2,994 to £2,550).
• Debtor balances have increased, which may indicate slower collections or growth in receivables.
• Current liabilities are well covered by current assets, but the company relies heavily on long-term loans to fund fixed assets.
• No employees are reported, which may limit operational expenses but raises questions on revenue generation capacity.
• The absence of a detailed income statement and cash flow statement restricts a full cash flow assessment; verification of stable income to service loan interest and principal is needed.

4. Monitoring Points:

• Monitor loan repayments and any additional borrowings from related parties.
• Track cash flow generation and liquidity regularly, especially debtor aging and cash conversion cycle.
• Watch for any changes in fixed asset valuations or impairments.
• Review updated management accounts to assess profitability and operating cash flows.
• Confirm ongoing compliance with filing deadlines and absence of director disqualifications or adverse governance issues.