DCHOMEANDBEAUTY LTD

Executive Summary

DCHOMEANDBEAUTY LTD is an active micro-entity in the cosmetics retail sector exhibiting ongoing negative net assets and working capital deficits, which raises significant solvency and liquidity concerns. While the company maintains good compliance with filing obligations and operates on a small scale, limited financial transparency and concentrated control highlight governance and operational risks. Further detailed financial and operational due diligence is recommended to fully understand the company's sustainability and risk profile.

DCHOMEANDBEAUTY LTD - Analysis Report

Company Number: 13102356

Analysis Date: 2025-07-20 12:49 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net assets and net current liabilities over multiple years, indicating solvency concerns. Despite being current on filings, the financial position shows deterioration, suggesting operational and liquidity challenges.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s net assets have worsened from £630 positive in 2020 to a negative £1,138 in 2023, with net current liabilities of £778 as of the latest accounts. This raises questions about the company’s ability to meet short-term obligations.
• Limited Financial Transparency: As a micro-entity, the company files filleted accounts without profit and loss details, restricting visibility on profitability and cash flow trends.
• Concentration of Control and Management: The majority shareholder and director is the same individual, Mr. Deepak Chopra, which may present governance risks if not balanced by independent oversight.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with statutory accounts and confirmation statements, indicating regulatory compliance and administrative discipline.
• Established Online Presence: The active website with product descriptions suggests ongoing commercial activity and marketing efforts in a defined retail niche (cosmetic and toilet articles).
• Small Scale Operation: With only 2 employees and micro-entity status, the company likely has low fixed overheads, potentially allowing flexibility to manage costs and scale operations carefully.

4. Due Diligence Notes:

• Investigate the underlying causes of sustained negative equity and working capital deficits, including review of cash flow statements and creditor arrangements.
• Obtain management accounts or internal financial reports to assess operational profitability and liquidity beyond the minimal statutory filings.
• Assess the business model viability and market position in the cosmetics retail sector, including supplier and customer dependencies.
• Review director and shareholder structure for any related party transactions or financial support arrangements.
• Confirm any contingent liabilities or off-balance sheet commitments that may exacerbate financial risk.