Risk Analysis: MAXIM WORLD LIMITED (05806654)

1. Risk Rating: HIGH

The company's status is recorded as "Liquidation" at Companies House, which is the most critical risk indicator possible. Regardless of the contradictory in_liquidation flag showing as False, the primary status field indicates formal insolvency proceedings. Additionally, the company exhibits severe cash deterioration, overdue statutory filings, and a declining asset base that collectively represent material solvency and liquidity concerns.

2. Key Concerns

Concern 1: Formal Insolvency Status

The company's registered status is "Liquidation," indicating it is undergoing a formal closure process under court or creditor supervision. This supersedes all other financial considerations — the company is not a going concern and is being wound up. Creditors and investors face significant risk of loss.

Concern 2: Catastrophic Cash Decline

Cash has fallen from £886,353 (May 2020) to £13,705 (Dec 2023) — a 98.5% reduction over approximately three and a half years. The most recent decline from £56,753 (2022) to £13,705 (2023) represents a 76% drop in a single year. With only £13,705 in cash against £1.8M in current liabilities, the company has virtually no liquidity to meet obligations.

Concern 3: Overdue Statutory Filings & Governance Concerns

Both the annual accounts and confirmation statement are marked as overdue. This suggests either administrative failure or, more likely given the liquidation status, that the company is no longer maintaining compliance. The registered address is care of an accountancy firm (Valentine & Co), and the company has only two officers (one director, one secretary), both from the same family, concentrating control with limited oversight.

3. Positive Indicators

Limited positive indicators exist given the liquidation status, but historically:

• Net assets remain positive at £572,684, meaning total assets still exceed total liabilities on paper
• Net current assets of £752,217 suggest the balance sheet was not technically insolvent on a current basis at the last filing date
• Long operating history — incorporated in 2006, the company traded for approximately 17 years before entering liquidation
• Shareholder funds have remained positive throughout the entire 10-year financial history provided

Note: These positive indicators are of limited relevance given the liquidation status. Asset realisation values in liquidation are typically materially below book values.

4. Due Diligence Notes

Immediate Investigation Required

1. Liquidation Details: Determine the type of liquidation (voluntary vs. compulsory), the appointed liquidator, and the date liquidation commenced. Check the London Gazette for notices.

2. Stock Valuation Reliability: Inventory of £1.565M represents 61% of current assets. In a hospitality supplies business, this stock may be specialist and difficult to realise at book value in a forced sale. Investigate whether provisions for obsolescence are adequate.

3. Debtors Collectability: Trade debtors of £972,962 need assessment — in liquidation, recovery rates on receivables are typically well below face value.

4. Intercompany Positions: Rsrkb Group Holdings Limited holds 75%+ control. Investigate whether there are intercompany receivables or payables that could affect creditor recovery, and whether preferential transactions occurred prior to liquidation.

5. Investment Write-down: Fixed asset investments dropped from £324,219 to £65,612 — investigate whether this reflects an impairment, disposal, or potential asset stripping prior to insolvency.

6. Director Conduct: Review whether the directors (Puneet and Nidhi Bhalla) have any disqualification orders. Given the transition from positive net assets to liquidation, investigate potential wrongful trading or preference issues under Insolvency Act 1986 ss.213-239.

7. Creditor Priority: Identify secured creditors and their positions. Long-term liabilities of £324,970 and provisions of £25,645 require analysis for security and priority ranking.