Case details for Bestun Saed MUHAMAD

Name: Bestun Saed MUHAMAD


Date of Birth: 1 / 7 / 1988

Date Order Starts: 20 / 10 / 2021

Disqualification Length: 7 Years 0 Month(s)

CRO Number: 12316796

Last Known Address: 7 Mellerstain Walk,, , , , LEICESTER,, LE5 0ND

Conduct: Between the date of incorporation on 15 November 2019 and the date of liquidation on 6 November 2020, Bestun Saed Muhamad (“Mr Muhamad”) failed to ensure that Ari Fashions Limited (“AFL”) preserved and/or maintained adequate accounting records; or, in the alternative, he failed to deliver up adequate records to the Liquidator. In particular: The only accounting books and records obtained are bank statements for account number 70268453, for the period 11 December 2019 to 2 December 2020 obtained by the Liquidator and Bounce Back Loan documents obtained by the Insolvency Service. In the absence of books and records and it has not been possible to ascertain or verify: a) The nature of AFL’s trading and its methods of operation. b) The total level of income for AFL. Bank statements show £613,207.99 received over 11 December 2019 – 9 November 2020, however it is not known whether this represents the entire company income, or whether these funds have been received in accordance with genuine business activities. c) In particular the reasons for the following expenditure out of AFL’s bank account and verification that these payments were legitimate company expenditure: • Cash withdrawals totalling £95,410 between January 2020 and October 2020. • Payments totalling £135,700 to/via Assisted Service Device between January 2020 and October 2020. • Payments totalling £63,823 to a third party between January 2020 and October 2020. • Payments totalling £10,610 to a third party between 2 April 2020 and 10 August 2020 • Payments totalling £26,020.58 to various food retailers/wholesalers between 16 April 2020 and 10 August 2020, when it is understood the nature of the business of AFL was as a garment manufacturer. • Payments totalling £11,760 to a school on 28 and 29 July 2020. • Payments totalling £11,100 relating to property/interiors/lighting between 30 April 2020 and 14 July 2020. • Payments totalling £4,874.53 to various retailers between 13 May 2020 and 28 July 2020. • Payments totalling £16,852.33 to various banking institutions/credit card companies between 16 June 2020 and 26 October 2020. • Payments totalling £35,550 to Deyare Trucks between 9 June 2020 and 23 July 2020. • Payments to individuals and other companies totalling £128,596 between 29 April 2020 and 6 October 2020. d) Any assets that AFL may have held including any amounts owed by book debts, or verify whether these amounts may have been available to creditors. e) In the absence of employee and payroll records, who was employed by AFL and the amounts property due to HMRC in respect of PAYE/NIC. f) The reason for AFL’s insolvency. g) The accuracy of the Statement of Affairs sworn by him on 29 October 2020. h) Why, between the 23 September 2020 when the liquidator was instructed to discuss the insolvency of AFL and the date the Liquidator was formally appointed on 6 November 2020, various payments were made when it was presumed AFL was insolvent, including £6,820 withdrawn in cash, and £10,000 paid to AST, beneficiary unknown, i) Why, having told the liquidator in he completed questionnaire to the liquidator, that he first became aware that AFL was insolvent in July 2020, AFL’s bank account shows that between 10 July 2020 and 6 November 2020 there was a combined income of £244,179.78 and a combined expenditure of £266,294.48. j) In May 2020 the company received a Bounce Back Loan in the sum of £40,000 and the day following receipt, £47,890 was paid out of AFL’s bank account to various recipients. In the absence of accounting records, it is not known if AFL was eligible for the loan or determine if these funds were used for the benefit of the company. 

This information is correct as at 30 / 9 / 2021

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