NURJAHAN FOODS LIMITED

Executive Summary

NURJAHAN FOODS LIMITED, a micro-entity operating in the licensed restaurant sector, presents significant solvency and liquidity risks due to its negative net current assets and minimal asset base. While regulatory compliance is maintained, the company’s small scale and financial position warrant close monitoring and further investigation into its operational viability and funding structure.

NURJAHAN FOODS LIMITED - Analysis Report

Company Number: 14321269

Analysis Date: 2025-07-29 17:09 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net current asset position (net liabilities) increasing from 2023 to 2024, indicating an inability to meet short-term obligations from current assets. The micro-entity size and very limited asset base further exacerbate solvency concerns.

2. Key Concerns:

• Negative net current assets of £2,003 in 2024 (worsening from £1,455 deficit in 2023) highlights liquidity strain and potential cash flow problems.
• Very limited scale of operations with only 2 employees and minimal current assets (£3,917) restricts operational flexibility and resilience.
• Lack of audit and limited financial disclosures typical of micro-entities reduces transparency on financial health and operational risks.

3. Positive Indicators:

• The company is in active status with timely filing of both accounts and confirmation statements, indicating compliance with regulatory deadlines.
• Shareholders’ funds, though negative, have increased slightly from previous year, showing some capital support or retained earnings improvement.
• The director is actively involved and local, potentially facilitating close operational oversight.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and creditor terms to assess immediate solvency risks.
• Review cash flow statements or bank statements (not provided) to understand real-time liquidity and working capital management.
• Conduct management discussions to understand business plan viability, revenue streams, and funding sources given the small scale and negative net assets.
• Confirm no undisclosed contingent liabilities or pending legal or tax issues that could impact solvency.
• Evaluate customer base and market position in licensed restaurant sector (SIC 56101) for sustainability outlook.