Company Number: 12680821

Analysis Date: 2025-07-20 16:09 UTC

1. Risk Rating: MEDIUM
   While ARORA SUPERSTORE LTD is currently active and compliant with filing deadlines, its financials reveal a mixed picture. The company’s net assets are positive but marginal (£12,731 in 2024), and it carries significant long-term liabilities (£192,530 bank loans). However, recent improvement in net current assets and cash balances suggests some recovery in liquidity.

2. Key Concerns:

• High Long-Term Debt: The jump in creditors due after more than one year from £13,530 in 2023 to £192,530 in 2024 indicates a substantial increase in financial leverage, which may pressure future cash flows.
• Low Equity Base: Shareholders’ funds are minimal relative to the scale of liabilities and assets, limiting the company’s buffer against financial shocks.
• Reliance on Debtors for Liquidity: The large amount of debtors (£126,718 in 2024) includes a significant portion due after more than one year, which may strain short-term cash availability if not collectible in time.

3. Positive Indicators:

• Improved Working Capital Position: Net current assets swung from a negative £77,724 in 2023 to a positive £101,967 in 2024, showing better short-term financial health.
• Consistent Asset Base: Fixed assets remained steady at £103,294, indicating stable investment in tangible and intangible assets.
• Compliance and Governance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue notices, reflecting sound administrative practices.

4. Due Diligence Notes:

• Detail on Long-Term Debt: Investigate the nature, terms, and covenants of the increased bank loans to assess repayment risk and impact on cash flow.
• Debtor Analysis: Clarify the composition and collectability of debtors, especially the large amount classified as due after more than one year.
• Profitability and Cash Flow Trends: Review management accounts and cash flow statements beyond the filleted accounts to understand operational performance and sustainability.
• Director and Ownership Stability: Monitor any changes in key personnel or ownership structure given recent director turnover.