Company Number: SC685588

Analysis Date: 2025-07-29 19:50 UTC

1. Risk Rating: HIGH
   Jai's Thai Limited demonstrates significant solvency and liquidity concerns, as reflected in persistent net liabilities and negative net current assets over consecutive years. The micro-entity scale and ongoing losses suggest financial distress.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £13,562 at 31 January 2024, worsening from £8,251 the previous year, indicating accumulated losses eroding shareholder equity.
• Poor Liquidity Position: Current liabilities (£28,371) substantially exceed current assets (£1,610), resulting in a large working capital deficit (-£26,761), which raises questions about the company's ability to meet short-term obligations.
• Operational Viability: The small scale (micro-entity), minimal share capital (£1), and ongoing negative equity suggest that the business may be reliant on external funding or director support, with no clear path to profitability evident from available data.

3. Positive Indicators:

• Compliance: The company is up to date with filing requirements, including accounts and confirmation statements, with no overdue filings or penalties noted.
• Stability in Management: The sole director has been in place since incorporation, potentially indicating stable governance at the management level.
• Consistent Employment: The company maintained an average of two employees, showing some operational continuity.

4. Due Diligence Notes:

• Investigate Cash Flow: Obtain management accounts or bank statements to assess cash flow management and whether there is ongoing external financing or director loans supporting operations.
• Review Business Model: Understand revenue streams, pricing, and market position within the take-away food sector (SIC 56103) to gauge prospects for turning around losses.
• Director Support and Guarantees: Determine if the director or third parties provide financial support or guarantees, and whether there are contingent liabilities or related-party transactions not disclosed in the micro-entity accounts.