BABA MALIK LIMITED

Executive Summary

BABA MALIK LIMITED exhibits early signs of financial stress with a notable reduction in net assets and negative working capital in its latest year, warranting caution. While compliance and governance appear sound, limited disclosure restricts a full assessment of operational health. Further financial details and operational insights are essential to clarify the company’s risk profile and sustainability.

BABA MALIK LIMITED - Analysis Report

Company Number: 14600353

Analysis Date: 2025-07-29 12:35 UTC

1. Risk Rating: MEDIUM
   The company shows a sharp decline in net current assets and net assets between 2024 and 2025, indicating emerging solvency and liquidity concerns. However, it remains an active private limited company with no overdue filings or legal issues reported.

2. Key Concerns:

• Liquidity Decline: Current liabilities (£5,542) slightly exceed current assets (£5,186) in 2025, resulting in negative net current assets (-£356), a reversal from the previous year's positive position. This suggests potential short-term cash flow issues.
• Significant Asset Reduction: Total net assets fell drastically from £15,476 in 2024 to only £390 in 2025, indicating a possible loss or drawdown of capital that could impair financial stability.
• Limited Financial Disclosure: The company filed micro-entity accounts which omit profit and loss details, restricting insight into operational performance and profitability trends.

3. Positive Indicators:

• Compliance with Filings: All statutory accounts and confirmation statements are up to date, with no overdue filings or penalties indicated.
• Active Status: The company is active and not under liquidation or administration, suggesting ongoing operations.
• Stable Governance: Directors and secretary appointments are current, and there are no disqualification records or compliance warnings reported.

4. Due Diligence Notes:

• Investigate Financial Performance: Obtain full accounts or management accounts to assess profitability, cash flows, and reasons behind the sharp reduction in net assets.
• Assess Working Capital Management: Review creditor and debtor terms to determine if liquidity pressures are short-term or symptomatic of operational issues.
• Confirm Nature of Assets: Verify the composition and valuation of fixed and current assets to rule out impairments or write-offs.
• Understand Shareholder Contributions/Withdrawals: Explore whether capital has been withdrawn or losses sustained that explain equity depletion.
• Review Business Model Sustainability: Given the IT consultancy SIC code, evaluate client base, contract stability, and revenue pipeline for operational viability.