Company Number: 15054792

Analysis Date: 2025-07-20 15:58 UTC

1. Risk Rating: MEDIUM
   While Monster Japan Limited is a newly incorporated private limited company with positive net assets, its current liabilities exceed current assets, resulting in negative net working capital which signals short-term liquidity risk. The small scale, limited trading history, and lack of audit increase uncertainty around operational stability.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£23,988) exceed current assets (£21,615), with net current liabilities of £2,373, indicating potential short-term cash flow challenges.
• Limited Operating History: Incorporated in August 2023 with only one financial period reported, limiting trend analysis and confidence in sustainable performance.
• Small Scale & Lack of Audit: As a small company exempt from audit, the financial statements are unaudited, which constrains the reliability of the reported figures and risk disclosures.

3. Positive Indicators:

• Positive Net Assets: Shareholders’ funds stand at £7,553, indicating the company has a positive equity base.
• Reasonable Cash Position: Cash balance of £15,687 provides some liquidity cushion despite current liabilities exceeding current assets.
• Clear Ownership & Management Structure: Three individuals hold significant control with clear ownership and voting rights, and an appointed director with business experience, which supports governance stability.

4. Due Diligence Notes:

• Verify the nature and timing of current liabilities, especially taxes and social security (£15,155), to assess their payment schedule and impact on cash flow.
• Review turnover and income generation trends post-incorporation to evaluate operational sustainability beyond the initial period.
• Examine any contingent liabilities or off-balance sheet exposures not reflected in these unaudited accounts.
• Confirm compliance with filing and regulatory requirements continues given the recent incorporation and no overdue filings.
• Investigate the background and experience of the director and PSCs for any potential governance or reputational risks.