Company Number: 14006017

Analysis Date: 2025-07-29 19:00 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant solvency concerns evidenced by the presence of substantial long-term liabilities exceeding current assets, a negative net current asset position, and very low net equity. These factors indicate potential difficulty in meeting obligations as they fall due.

2. Key Concerns:

• Solvency Risk: The company has current liabilities of £17,293 with current assets of only £12,185 as of 31 March 2024, resulting in negative net current assets of £5,108. More critically, the company shows long-term liabilities (creditors falling due after more than one year) of £111,352, which heavily outweigh the total assets less current liabilities of £113,817, leaving net assets of only £2,465. This tight equity base along with significant liabilities raises the risk of insolvency.
• Liquidity Concerns: The micro-entity classification and reported figures indicate very limited working capital and cash resources, with only one employee and modest current assets. Such a position may impair operational flexibility and ability to cover short-term obligations promptly.
• Operational Stability: The company was incorporated in 2022 and appears to be in an early stage with minimal staff and limited asset base. The reduction in fixed assets from £131,479 (2023) to £118,925 (2024) suggests possible asset disposals or depreciation without clear reinvestment. The reported financials imply the business is still stabilizing and may face operational risks common to new ventures.

3. Positive Indicators:

• The company is up to date on its statutory filings, including accounts and confirmation statements, indicating compliance with regulatory requirements.
• The sole director and majority shareholder, Mrs. Sherine Tharmila Vasantharaj, has maintained active involvement since incorporation, suggesting continuity of management.
• The company has managed to transition from a negative net asset position in 2023 (-£1,515) to a positive albeit minimal net asset position (£2,465) in 2024, which may reflect some financial improvement.

4. Due Diligence Notes:

• Verify the nature and terms of the £111,352 long-term liabilities to assess repayment schedules, interest obligations, and any covenants that could impact financial stability.
• Review cash flow statements and management accounts (if available) to understand liquidity trends, cash burn rate, and the company’s ability to generate operational cash flow.
• Investigate the business model and revenue generation capacity given the micro-entity status and limited staffing, including customer base and contracts supporting sustainability.
• Confirm any contingent liabilities, related party transactions, or off-balance-sheet obligations that may not be apparent from the micro-entity accounts.
• Assess background and experience of the director/shareholder to evaluate ability to manage the company through its initial growth phase.