UMER CHAK LTD

Executive Summary

UMER CHAK LTD, a micro private limited company incorporated in 2023, shows early financial distress with negative net assets and working capital after its first reporting period. While regulatory compliance is maintained, the company’s low turnover, operating losses, and liquidity shortfall present significant solvency risks. Further investigation into funding plans and business sustainability is recommended before considering investment.

UMER CHAK LTD - Analysis Report

Company Number: 14850090

Analysis Date: 2025-07-29 17:54 UTC

1. Risk Rating: HIGH
   The company exhibits negative net current assets and net liabilities after its first financial year, indicating an inability to meet short-term obligations with available current assets. The loss reported, combined with minimal turnover and zero employees, suggests limited operational activity and financial instability at this early stage.

2. Key Concerns:

• Negative working capital of £2,847 implies liquidity issues and potential cash flow constraints.
• Net liabilities position with no positive equity raises solvency concerns and questions on the company’s capacity to continue as a going concern without additional funding.
• Absence of employees and low turnover (£18,473) in a wholesale sector may indicate limited business operations or market traction.

3. Positive Indicators:

• Company is compliant with all filing deadlines; no overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Single director and 100% shareholder demonstrates clear governance structure and control, reducing management complexity.
• Micro-entity status limits filing requirements, which is appropriate given the company’s current scale of operations.

4. Due Diligence Notes:

• Investigate the source of funds supporting current liabilities and any plans for capital injection or loans to address the negative net assets.
• Assess the business model viability and pipeline for growth given the very low turnover and operating losses.
• Confirm absence of related party transactions or contingent liabilities that may exacerbate financial risks.
• Review director’s strategy and timeline for achieving operational break-even or profitability.