Company Number: 15219060

Analysis Date: 2025-07-20 16:29 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (October 2023) with a small asset base and limited operating history. While it is not overdue on filings and shows positive net assets, the presence of significant creditors due after one year and minimal cash holdings raises moderate solvency and liquidity concerns.

2. Key Concerns:

• Solvency risk due to long-term creditors: The company shows £24,326 in creditors due after more than one year, which is relatively high compared to its net assets of £31,904, suggesting a material level of long-term debt that may pressure solvency if earnings do not develop.
• Very low cash balance: Cash at bank and in hand is only £54, which is extremely low relative to current liabilities of £10,676, indicating potential short-term liquidity challenges.
• Limited operating history and small scale: Incorporated less than one year ago, with only one employee and minimal turnover disclosed, the business lacks an established track record or financial resilience.

3. Positive Indicators:

• Net current assets positive at £46,230: Despite low cash, the company’s current assets (£35,554) plus intangible assets (£10,000) exceed current liabilities, suggesting working capital management is currently adequate.
• No overdue statutory filings: The accounts and confirmation statement have both been filed on time, indicating compliance and good governance practices so far.
• Full ownership and control by a single director: Mr. Pawandeep Singh Taal holds 75-100% of shares and voting rights, simplifying decision-making and accountability.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (noted as “other creditors” £24,326) to assess repayment schedules, interest obligations, and associated covenants.
• Review the company’s business plan and revenue generation model given the lack of an income statement and very limited operational data.
• Clarify the reason for the very low cash balance despite positive net current assets, including the composition of current assets (stocks worth £35,500) and whether these are readily realizable.
• Confirm the legitimacy and valuation of the £10,000 intangible asset (goodwill) given the company’s short existence.
• Monitor ongoing compliance and financial performance closely given the early stage of the business.