Company Number: 13645443

Analysis Date: 2025-07-20 14:47 UTC

1. Credit Opinion: APPROVE
   Shikhar Limited shows a stable financial position with positive net assets and net current assets over the last two years. As a micro-entity with low operational complexity and a sole director/shareholder, it demonstrates prudent financial management. The company’s ability to maintain liquidity and positive working capital supports its capability to service debt. No negative operational or compliance flags are present.

2. Financial Strength:
   The balance sheet reflects a net asset base of approximately £80,476 as of the latest filing, consistent with prior years (£82,349 in 2023). The company holds no fixed assets, focusing on current assets (mainly cash or receivables) of about £125k against current liabilities of £44.8k, indicating sound short-term financial health. Shareholders’ funds match net assets, showing no debt or long-term liabilities, which reduces financial risk.

3. Cash Flow Assessment:
   Current assets comfortably exceed current liabilities, producing net working capital of £80,476, suggesting good liquidity and operational cash flow sufficiency. With no fixed assets and minimal employees, cash burn is likely low. The stable net current assets and no evidence of overdue filings or financial distress indicate manageable working capital cycles and no immediate liquidity concerns.

4. Monitoring Points:

• Maintain positive net current assets and monitor any increase in liabilities that may pressure liquidity.
• Watch for changes in cash flow patterns as the business grows or takes on debt.
• Review director’s operational activity and financial reporting timeliness to ensure ongoing compliance.
• Track business performance within the insurance auxiliary sector (SIC 66290) for any sector-specific risks.