S R DURRANI UN LIMITED

Executive Summary

S R DURRANI UN LIMITED is a recently incorporated micro entity operating in the take-away food sector with negative net current assets and net liabilities at its first year-end, indicating elevated solvency and liquidity risk. The company remains compliant with filing requirements, but its financial position warrants close monitoring and further scrutiny of cash flow management and operational viability before considering investment.

S R DURRANI UN LIMITED - Analysis Report

Company Number: 15022327

Analysis Date: 2025-07-29 13:15 UTC

1. Risk Rating: HIGH
   Given the available financial data for S R DURRANI UN LIMITED, the company exhibits significant solvency and liquidity concerns for its first accounting period ending 31 July 2024. Net current liabilities and negative shareholders’ funds signal potential difficulties in meeting short-term and overall obligations.

2. Key Concerns:

• Negative Net Current Assets (£-8,032): Current liabilities exceed current assets, indicating potential cash flow problems to cover short-term debts.
• Net Liabilities (£-282): The company’s total liabilities slightly exceed total assets, resulting in negative equity which raises solvency risk despite the small absolute figures.
• Early Stage with Limited Operating History: Incorporated in July 2023, the company has less than one full financial year of trading, increasing uncertainty regarding future operational stability.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement are filed on time, suggesting compliance with regulatory requirements.
• Owner-Managed with Clear Control: The sole director and 75-100% shareholder, Mr Rizwan Yunis Durrani, indicates direct oversight which can facilitate swift decision-making.
• Micro Entity Status: The small scale and micro entity accounting framework reduce complexity and filing burdens, which is typical for start-ups or small businesses.

4. Due Diligence Notes:

• Cash Flow Projections and Working Capital Management: Investigate how the company plans to manage liquidity and whether additional funding or credit facilities are in place.
• Business Model and Revenue Streams: Understand the viability of the take-away food business given market competition and operating costs.
• Director’s Background and Financial Support: Assess the financial standing and commitment of the director to sustain the business during early loss-making stages.
• Future Financial Performance: Monitor next accounting period results for improvement in solvency and liquidity metrics.
• Potential Related Party Transactions: Given single control, examine any transactions between the company and the director or related entities.