DANIROH LTD

Executive Summary

DANIROH LTD presents a low financial risk profile based on its improving net asset position, positive liquidity, and up-to-date statutory filings. However, the company’s very small scale, limited operational data, and concentrated ownership warrant further investigation to confirm business sustainability and governance robustness. Overall, the company appears solvent and compliant but requires deeper due diligence on operational and regulatory aspects.

DANIROH LTD - Analysis Report

Company Number: 14364661

Analysis Date: 2025-07-20 16:08 UTC

1. Risk Rating: LOW
   The company shows a positive net asset position, improvement in net current assets from negative to positive, no overdue filings, and no indications of distress or regulatory issues. The micro-entity status limits financial disclosure, but available data suggests low immediate risk.

2. Key Concerns:

• Minimal operational scale: The company reports zero employees and very modest fixed assets, which may limit operational capacity and growth potential.
• Limited financial history: Incorporated in late 2022, with only two years of accounts available, restricting trend analysis and long-term stability assessment.
• Sole control by one individual: One director holds 75-100% ownership and voting rights, raising potential governance risks related to concentration of control.

3. Positive Indicators:

• Solid improvement in liquidity: Current assets increased substantially to £16,480 with current liabilities stable, resulting in positive net current assets of £12,973 at the latest year-end.
• Positive net assets and shareholders’ funds: Net assets grew from £451 to £14,937 within two years, indicating a strengthening balance sheet.
• Compliance with statutory requirements: No overdue accounts or confirmation statements; filings are up to date.
• Active status without signs of insolvency: No liquidation or administration proceedings and company remains active.

4. Due Diligence Notes:

• Investigate the nature and sustainability of the company’s revenue streams given the absence of employees and limited asset base.
• Verify the extent and quality of underlying contracts or client relationships to assess operational viability.
• Review director and shareholder arrangements in detail to understand governance structure and risk of related party transactions, especially given sole control.
• Confirm that all regulatory and licensing requirements for residential care activities are met, considering the industry classifications.
• Assess the cash flow dynamics and whether the reported current assets include significant cash or receivables.