Company Number: SC679035

Analysis Date: 2025-07-29 12:42 UTC

1. Risk Rating: HIGH
   The company has persistently negative net current assets and net liabilities over multiple years, indicating ongoing working capital deficits and insufficient equity base. Cash levels are extremely low relative to current liabilities, raising immediate liquidity concerns.

2. Key Concerns:

• Negative net current assets for four consecutive years (2020-2023), though slightly improved in 2023, still indicate liquidity strain.
• Minimal cash reserves (£1,630 in 2023) versus current liabilities of £132,221, increasing risk of inability to meet short-term obligations.
• Persistent net liabilities and negative shareholders' funds since incorporation, suggesting ongoing losses or undercapitalisation.

3. Positive Indicators:

• Company is current with all statutory filings and accounts, showing compliance with regulatory requirements.
• Slight improvement in net current assets from -£27,590 in 2022 to -£8,399 in 2023 demonstrates some operational progress.
• Intangible assets are stable, reflecting some invested value in non-physical assets.
• Increase in average employees from 42 to 46 suggests operational growth or stability.

4. Due Diligence Notes:

• Investigate the nature and collectability of "Other debtors" (£105,586), as high debtor balances relative to cash pose cash flow risk.
• Review the components of current liabilities, especially taxes and social security (£90,369), to assess payment history and potential arrears.
• Understand the underlying causes of sustained losses and working capital deficits, including revenue trends and expense management.
• Examine related party transactions with MAKORLS PVT LTD to ensure no undue financial risk or intercompany dependency.
• Assess the company’s cash flow forecasts and working capital management strategies to evaluate short-term solvency prospects.