Company Number: 12728601

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: HIGH
   ERAW LIMITED shows a persistently negative net asset position over multiple years with increasing current liabilities exceeding current assets. This signals significant solvency risk and questions the company’s ability to meet short-term obligations. The absence of employees and minimal share capital further indicate limited operational scale and financial buffer.

2. Key Concerns:

• Negative shareholders’ funds worsening from -£3,310 in 2020 to -£6,079 in 2024, reflecting accumulated losses and inadequate capitalization.
• Consistent net current liabilities, indicating liquidity constraints and potential cash flow difficulties to cover immediate debts.
• Micro entity status with no employees and very low share capital (£100), suggesting limited operational activity and potentially unsustainable business model.

3. Positive Indicators:

• Company remains active and compliant with filing deadlines for accounts and confirmation statements, reducing regulatory risk.
• Single director and sole shareholder (Mr. Zafar Iqbal Khan) offers clear control and decision-making agility.
• Industry classification as an advertising agency could provide opportunities for growth if financial challenges are addressed.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess whether they are trade payables, loans, or other debts that might trigger enforcement actions.
• Clarify business activities and revenue generation since the company reports no employees and minimal assets.
• Request management accounts or cash flow forecasts to evaluate operational viability and plans for capital injection or restructuring.
• Review director’s intentions and any related party transactions, given the sole control by one individual.
• Confirm no contingent liabilities or off-balance sheet obligations exist beyond those disclosed.