Company Number: 13553510

Analysis Date: 2025-07-20 17:26 UTC

1. Risk Rating: HIGH
   Meraki Interiors Limited exhibits significant solvency and liquidity concerns, with net liabilities persisting over multiple years and worsening current liabilities relative to current assets in the latest financial year.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets have deteriorated from a positive £10,727 in 2023 to negative £2,777 in 2024, indicating an erosion of equity and potential insolvency risk.
• Negative Working Capital: Net current assets moved from a positive £9,827 in 2023 to a negative £2,777 in 2024, reflecting that current liabilities exceed current assets, which may strain short-term liquidity.
• Director Loans and Related Party Creditors: £3,995 of current liabilities are director loans, which may indicate reliance on insider financing to manage cash flow, a red flag for external investors.

3. Positive Indicators:

• Timely Filing Compliance: No overdue accounts or confirmation statements, suggesting good regulatory compliance and governance discipline.
• Active Status with Continuous Operation: Incorporated in 2021 and still active without liquidation or administration proceedings, indicating operational continuity despite financial challenges.
• Single Director and PSC with Clear Control: Mrs. Archna Singh holds full ownership and control, potentially enabling swift decision-making and strategic adjustments.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp decline in net assets and working capital between 2023 and 2024, focusing on any extraordinary expenses, write-downs, or revenue shortfalls.
• Review the terms and sustainability of director loans and other related party transactions to assess financial support structure and risk of withdrawal.
• Examine cash flow statements and projections, if available, to evaluate the company’s ability to meet upcoming liabilities and fund operations.
• Enquire about the absence of employees and operational model to understand business sustainability and revenue generation approach.