M & A GEMS LTD

Executive Summary

M & A GEMS LTD is a micro-entity with a very limited financial footprint, showing static minimal net assets and current assets over three years and no employees currently. While regulatory compliance is satisfactory, the financial data suggests limited operational activity and potential liquidity constraints. Further investigation is recommended to clarify the company’s trading status and sustainability prospects.

M & A GEMS LTD - Analysis Report

Company Number: 13658328

Analysis Date: 2025-07-20 19:06 UTC

1. Risk Rating: HIGH
   The company exhibits minimal financial scale with very low net assets (£950) and current assets (£2,321) relative to current liabilities (£1,371). The financial data is static across three years, which is unusual and potentially indicative of limited or no trading activity. The absence of employees in the latest year and minimal operational data suggests limited business activity and potential liquidity constraints.

2. Key Concerns:

• Minimal Asset Base and Equity: Net assets and shareholders’ funds stand at only £950, which is negligible and may not provide a sufficient buffer to absorb operational losses or liabilities.
• Static Financial Figures Over Multiple Years: Identical financial positions reported over three consecutive years raise questions about the accuracy or completeness of financial reporting and suggest very limited or no substantive trading activity.
• No Employees Currently: The company reported zero employees in the latest year, indicating either a dormant or severely reduced operational capacity, which may affect sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statement filings, indicating good compliance with regulatory obligations.
• Clear Ownership and Control: One director and sole shareholder (Mr Aziz Ahmad) with full control may facilitate swift decision-making and governance.
• Micro-entity Accounting: Filing under micro-entity provisions reduces administrative burden and costs, appropriate for the company’s size.

4. Due Diligence Notes:

• Verify the nature and extent of trading activity given the identical financial figures over multiple years.
• Investigate reasons for zero employees in the latest year and assess whether the company is operational or effectively dormant.
• Review any off-balance-sheet liabilities or contingencies not apparent from micro-entity accounts.
• Confirm cash flow status and access to working capital, as reported current assets (£2,321) are minimal.
• Assess the director’s plans for the business and potential for future capital injection or operational scaling.