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.