Company Number: 14518825

Analysis Date: 2025-07-20 16:10 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, reflected by negative net assets and a large current liabilities balance far exceeding current assets.

2. Key Concerns:

• Negative Net Assets: The company’s net assets stand at -£1,167 with net current liabilities of -£199,509, indicating an insolvency position at the balance sheet date.
• High Short-Term Debt: Current liabilities of £205,509, primarily due to amounts owed to group undertakings (£204,684), pose a liquidity concern given only £6,000 in current assets (debtors).
• Going Concern Uncertainty: Directors disclose material uncertainties regarding going concern status, signifying potential operational and financial sustainability issues.

3. Positive Indicators:

• Fixed Asset Investment: The company holds tangible fixed assets valued at £198,342, which may represent a strategic asset (land/property) supporting future operations or collateral value.
• Parent and Ultimate Controlling Party: The company is wholly controlled by Aura Power Solar Ltd and ultimately Aura Power Developments Ltd, both presumably larger entities that might provide financial or operational support.
• Compliance: Filing deadlines for accounts and confirmation statements are up to date with no overdue filings or penalties, indicating regulatory compliance.

4. Due Diligence Notes:

• Review the nature and terms of the £204,684 owed to group undertakings, including repayment schedules and any intercompany agreements.
• Assess the strategic plan and funding commitments from the parent company group to address the negative equity and liquidity shortfall.
• Investigate the basis and assumptions behind the directors’ going concern statement and any contingency plans for financial distress.
• Confirm the status and usability of the tangible fixed assets and their role in future revenue generation or sale.
• Examine operational plans given the company had no employees during the period and minimal current assets, to understand sustainability prospects.