Company Number: 13116858

Analysis Date: 2025-07-20 14:40 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its significant current liabilities relative to current assets and a very low net asset position, indicating potential solvency challenges.

2. Key Concerns:

• Liquidity and Working Capital Deficit: The 2024 accounts show current assets at £8,972 against current liabilities of £476,662, resulting in a negative net current asset position of -£467,690. This large shortfall suggests severe liquidity constraints and potential difficulty in meeting short-term obligations.
• Solvency Risk: Although fixed assets are substantial (£481,204), the company's net assets are marginal (£12,714) and only slightly positive due to the offsetting large current liabilities. The balance sheet indicates limited equity buffer, which raises concerns about financial stability.
• Operational Scale and Sustainability: The company is classified as a micro-entity with only one employee and minimal share capital (£100). The limited operational scale combined with a high liability load could impact ongoing business viability unless liabilities are restructured or revenue generation improves.

3. Positive Indicators:

• Stable Fixed Assets: The company holds significant fixed assets (£481,204) which may represent owned real estate, consistent with its SIC codes related to property letting and trading. These could potentially be leveraged to improve liquidity or as collateral for financing.
• Timely Compliance: The company is current with its filing obligations, with no overdue accounts or confirmation statements, indicating good regulatory compliance and governance practices.
• Single Controlling Shareholder: The 75-100% ownership and control by Mrs. Harsha Inder Ramnani may facilitate streamlined decision-making and potentially quicker actions to address financial challenges.

4. Due Diligence Notes:

• Asset Valuation and Liquidity: Verify the nature and market value of the fixed assets. Investigate how readily these assets can be realized to cover liabilities if needed.
• Liability Composition: Obtain detailed breakdown of current liabilities to assess their nature (e.g., loans, trade creditors, accrued expenses) and maturity profiles. Identify any contingent or off-balance-sheet liabilities.
• Cash Flow Analysis: Review the company's recent and projected cash flow statements to understand operational cash generation and whether the company can service its short-term debts.
• Business Model Viability: Explore revenue streams and profitability trends, given the micro-entity scale and limited staffing, to evaluate operational sustainability.
• Director and Related Party Transactions: Given the sole director and shareholder, examine any related party transactions or loans that may affect financial standing.