Company Number: 14588619

Analysis Date: 2025-07-19 12:20 UTC

1. Risk Rating: MEDIUM
   Justification: KM Sneakers Limited is a newly incorporated micro-entity with minimal net assets (£113) and very limited working capital. While it is compliant with filing requirements and currently active, the extremely low net asset base and small scale of operations indicate a modest buffer against financial difficulties.

2. Key Concerns:

• Very low net current assets (£113), suggesting limited liquidity and minimal financial cushion to meet short-term obligations.
• Company is in its first full financial year of trading, with limited financial history to assess operational stability or profitability.
• Director resignation within the first year (Hiten Kumar Majithia resigned Oct 2024) could imply internal changes or management instability needing further inquiry.

3. Positive Indicators:

• Company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance.
• No overdue returns or accounts, reducing risk of administrative penalties or regulatory scrutiny.
• Shareholders and directors are UK residents with clear control structure, supporting governance transparency.

4. Due Diligence Notes:

• Investigate the nature and scale of operations to assess sustainability beyond the micro-entity stage.
• Review cash flow forecasts and funding arrangements given limited working capital.
• Clarify reasons for director resignation and impact on company strategy and management.
• Confirm any related party transactions or shareholder loans that might not appear in micro-entity accounts.
• Monitor future filings for revenue growth, profitability, and asset base changes.