JASSI CORPORATION LTD

Executive Summary

Jassi Corporation Ltd is currently in a financially precarious position, demonstrating negative working capital and shareholders’ funds with a material uncertainty over going concern. The company’s reliance on director loans and inability to cover short-term liabilities indicate a high credit risk. Approval for new credit facilities is not recommended without significant financial improvement or additional security.

JASSI CORPORATION LTD - Analysis Report

Company Number: 13549544

Analysis Date: 2025-07-29 17:12 UTC

1. Credit Opinion: DECLINE
   Jassi Corporation Ltd shows significant financial distress with net current liabilities of £2,266 and negative shareholders' funds of £2,266 as at 31 August 2024. The company’s working capital position has deteriorated markedly from a positive £100 in the prior year to a negative position. The presence of director loans and creditors suggests reliance on related party funding and short-term liabilities that the company may struggle to meet. The directors’ note on material uncertainties regarding going concern further confirms financial instability. Given these factors, the company currently lacks the financial strength to reliably service new credit facilities without significant improvement or additional capital injection.

2. Financial Strength:
   The balance sheet is weak and deteriorating. Current assets are minimal (£4,703), predominantly cash (£4,679), with negligible trade debtors (£24). Current liabilities exceed current assets by £2,266, indicating a working capital deficit. The company has no fixed assets reported. Shareholders’ funds are negative, reflecting accumulated losses and eroded equity capital. Lack of tangible asset backing and negative net assets reduce financial resilience and creditor protection.

3. Cash Flow Assessment:
   Cash on hand is low but increased from £100 to £4,679, which is a positive sign; however, this is insufficient to cover current liabilities of £6,969. The company depends on director loans and accruals to meet obligations. Operating cash flow details are not provided, but the negative net current assets indicate liquidity pressure and potential cash flow mismatches. Working capital management appears weak, raising concerns over the company’s ability to meet immediate debt repayments without additional funding.

4. Monitoring Points:

• Liquidity trends in subsequent periods, especially cash balances versus short-term liabilities
• Director loans and related party transactions to assess funding sustainability
• Improvement or further deterioration in net current assets and shareholders’ funds
• Any changes in going concern status or indications of restructuring or additional capital injection
• Timely filing of accounts and confirmation statements to ensure regulatory compliance