Company Number: 14305668

Analysis Date: 2025-07-20 11:05 UTC

1. Risk Rating: HIGH
   The company's balance sheet as of 31 August 2023 shows significant negative net current assets (-£28,921) and total net liabilities of £28,793. These figures indicate insolvency risk, as current liabilities exceed current assets substantially, and overall liabilities surpass total assets.

2. Key Concerns:

• Solvency and Liquidity Deficit: Current liabilities (£29,505) far exceed current assets (£584), with net current liabilities of nearly £29k, raising immediate concerns about the company's ability to meet short-term obligations.
• Negative Net Assets: Total net liabilities of £28,793 suggest the company’s liabilities exceed its assets, which is a strong indicator of financial distress.
• Short Operating History with Limited Financial Data: Incorporated in August 2022 with only one set of micro-entity accounts filed, limiting visibility into operational performance, cash flows, or profitability trends.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements, indicating regulatory compliance and governance discipline thus far.
• Active Website and Market Presence: The company maintains an active website promoting its Bengali café and halal breakfast offerings, suggesting ongoing trading activity and customer engagement.
• Small Team Size: Average of 4 employees may help control operating costs, which could be beneficial if revenues increase.

4. Due Diligence Notes:

• Examine Cash Flow and Profit & Loss Details: The accounts provided are limited to the balance sheet. Request profit and loss accounts or management accounts to assess operational income and cash flow sufficiency.
• Investigate Nature and Terms of Creditors: Understand the composition of current and long-term liabilities, payment terms, and any overdue debts or creditor pressure.
• Confirm Ownership Structure and Director Roles: There is some overlap in significant control declarations; clarify shareholdings and voting rights between Mrs. Reshna Begum and Mr. Jahangir Alom Ali to assess governance stability.
• Assess Business Model Viability: Review market positioning, competitive environment, and growth strategy for the Bengali café concept in Norwich.
• Check for Related Party Transactions or Contingent Liabilities: To understand any off-balance sheet risks or financial dependencies.