Company Number: 15218545

Analysis Date: 2025-07-29 13:03 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial distress with negative net assets and net current liabilities exceeding current assets by a substantial margin, indicating solvency risk.

2. Key Concerns:

   • Negative Net Assets (£-6,197): The company’s liabilities exceed its assets, signaling that it is technically insolvent at the balance sheet date.
   • Negative Working Capital (£-16,292): Current liabilities well exceed current assets, suggesting liquidity issues and potential difficulty meeting short-term obligations.
   • Newly Incorporated with Limited Operating History: Being incorporated in October 2023 with only one year’s accounts limits ability to assess operational stability and financial trends.

3. Positive Indicators:

   • Timely Filing: The company has filed its accounts and confirmation statements on time, indicating regulatory compliance and good governance practices so far.
   • Clear Ownership and Control: A single director and 75-100% shareholder control by Mr. Tejas Madhusudan Desai provides clarity on decision-making and accountability.
   • Minimal Employee Count: Operating with one employee (the director) may reduce fixed overheads and enable lean operations during early growth phases.

4. Due Diligence Notes:

   • Investigate the nature and terms of the bank loans and other loans (£18,152 total) to assess repayment schedules and potential covenants or risks.
   • Review the business plan and cash flow forecasts to understand management’s strategy for addressing negative net assets and working capital deficit.
   • Confirm whether any external financial support (e.g., director loans or shareholder funding) is planned or available to maintain operations.
   • Consider the risks associated with limited trading history and whether the current financial position is typical for a start-up in this sector.
   • Verify whether the company has adequate insurance, licenses, and compliance with food retail regulations given its SIC classification.