SYNTHIFY LTD

Executive Summary

Synthify Ltd is a very recently incorporated private limited company with a minimal equity base and tight liquidity position. While regulatory compliance is satisfactory and ownership structure is simple, the company’s financial resources and track record are limited, presenting moderate risk primarily around cash flow sufficiency and operational sustainability. Further due diligence on debtor quality, business model clarity, and funding adequacy is recommended.

SYNTHIFY LTD - Analysis Report

Company Number: 15431181

Analysis Date: 2025-07-29 15:52 UTC

1. Risk Rating: MEDIUM
   Justification: Synthify Ltd is newly incorporated (Jan 2024) with minimal net assets (£11) and very limited financial history. The company shows a marginally positive net current asset position (£11) but current liabilities are nearly equal to current assets (£2,727 vs £2,716). This tight liquidity position combined with the early stage of operations indicates moderate risk.

2. Key Concerns:

• Liquidity Tightness: Cash and debtors total only £2,727 while current liabilities are £2,716, leaving very little working capital buffer to absorb unexpected expenses or delays in cash inflows.
• Limited Financial History: Being less than one year old, there is insufficient financial track record to assess operational sustainability or growth prospects.
• Small Share Capital and Equity: Shareholders’ funds stand at just £11, which is a minimal equity base to support operations or absorb losses.

3. Positive Indicators:

• Compliance and Timely Filing: The company is up to date with statutory filings and accounts, indicating good governance and regulatory compliance.
• Clear Ownership and Control: One director and 75-100% shareholder control by Mr. Kishor Kumar Mahto, suggesting straightforward governance without complex ownership structures.
• No Overdue Filings or Liquidation Status: The company is active, not in liquidation or administration, reducing immediate regulatory risks.

4. Due Diligence Notes:

• Investigate the nature and reliability of debtors (£1,269) to confirm collectability and impact on cash flow.
• Review business model and revenue recognition policies given SIC code 94990 ("Activities of other membership organizations not elsewhere classified") which is quite broad and may require clarification for operational sustainability.
• Monitor cash flow projections and funding plans to ensure the company can meet liabilities as they fall due given the minimal working capital.
• Assess any contingent liabilities or off-balance sheet risks not evident in the accounts.
• Confirm related party transactions or director loans that might impact financial stability.