Company Number: 13804982

Analysis Date: 2025-07-29 20:31 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with negative net assets and persistent net current liabilities. The limited operational scale and negative equity position heighten the risk profile.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £3,075 as of 29 February 2024, indicating insolvency on a balance sheet basis.
• Negative Working Capital: Net current liabilities of £46,474 suggest liquidity stress and potential difficulties in meeting short-term obligations.
• Reliance on Director Advances: The director has advanced £5,715 without repayment, highlighting a potential dependency on insider funding rather than external finance or operating cash flow.

3. Positive Indicators:

• No Overdue Filings: The company is current with both accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Ownership and Control Concentrated: The sole director and 75-100% shareholder, Manvinder Singh Nagi, provides clear governance and decision-making lines without apparent governance complexity.
• Fixed Asset Stability: Fixed assets are stable at approximately £102,770, suggesting ownership of tangible or long-term assets that could potentially be leveraged or sold if necessary.

4. Due Diligence Notes:

• Investigate the nature and value of fixed assets to assess realizable value under stress scenarios.
• Examine cash flow statements and management accounts (not provided) to understand operational cash generation or burn rate.
• Understand the terms and circumstances of director advances and any contingent liabilities or guarantees that might affect solvency.
• Review any related party transactions or off-balance sheet arrangements that might impact financial stability.
• Verify the ongoing business model viability given the micro-entity scale, single employee, and significant liabilities.