Company Number: 14720628

Analysis Date: 2025-07-20 17:57 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and significant long-term creditors, indicating potential solvency risk. The balance sheet shows total net assets of -£17,111 due to £80,000 of creditors falling due after more than one year, which exceeds the net current assets and fixed assets combined. This financial structure suggests the company may struggle to meet its liabilities without additional capital or improved profitability.

2. Key Concerns:

• Negative Equity: Shareholders’ funds are negative (-£17,111), indicating the company’s liabilities exceed its assets, a red flag for solvency.
• Significant Long-Term Debt: £80,000 creditors due after one year represent a substantial obligation relative to the company’s size and asset base.
• Newly Incorporated Micro-Entity: Incorporated in March 2023 with only one reported financial year, limited operational history and financial data to assess sustainability and cash flow stability.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: Net current assets are positive at £33,139, suggesting some short-term liquidity cushion.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
• Single Principal Director with Full Control: Clear ownership and governance structure under Mr. Robinson Gopalakrishnan, which may facilitate swift decision-making.

4. Due Diligence Notes:

• Clarify Nature of £80,000 Long-Term Creditors: Understand the terms, interest obligations, and repayment schedule of this debt to assess cash flow impact.
• Review Cash Flow Projections and Business Plan: As a newly incorporated entity, verify the operational sustainability and funding strategy.
• Examine Director’s Background and Related Party Transactions: Given sole control, ensure no conflicts or related-party lending that could affect financial stability.