JSI DEVELOPMENTS LTD

Executive Summary

JSI Developments Ltd, a recently incorporated micro-entity operating in real estate development and letting, currently presents a high investment risk profile due to negative net assets and significant liabilities outweighing current assets. While compliant with filings and backed by tangible fixed assets, limited operational data and liquidity concerns warrant thorough due diligence on its debt structure and cash flow prospects before considering investment.

JSI DEVELOPMENTS LTD - Analysis Report

Company Number: 15218266

Analysis Date: 2025-07-20 16:40 UTC

1. Risk Rating: HIGH
   Justification: The company has negative net assets and shareholder funds (£-1,052) shortly after incorporation, with current liabilities far exceeding current assets. The large amounts due after more than one year relative to total assets indicate significant leverage or debt. The micro-entity accounts are unaudited and reveal limited operational history, increasing risk uncertainty.

2. Key Concerns:

• Negative equity position at an early stage, suggesting insolvency risk if losses continue or debt repayment is demanded.
• Current liabilities (£535,871) vastly exceed current assets (£9,530), indicating potential liquidity challenges to meet short-term obligations.
• Lack of profit and loss disclosure (exemption claimed) limits insight into operational performance and cash flow generation capability.

3. Positive Indicators:

• The company is active, compliant with filing deadlines for both accounts and confirmation statements, indicating governance discipline.
• Fixed assets of £524,350 suggest tangible asset backing, potentially real estate holdings consistent with the company’s SIC codes in property development and letting.
• Single director and controlling shareholder structure (JSI Investments Ltd and Mr. Hirani) provide clear accountability.

4. Due Diligence Notes:

• Investigate the nature and terms of the £535,871 liabilities falling due after more than one year, including repayment schedules and creditor identities.
• Review cash flow statements and profit & loss data (if available beyond micro-entity exemptions) to assess operational sustainability and future funding needs.
• Confirm valuation and liquidity of fixed assets to evaluate their adequacy as collateral or for sale if needed.
• Assess the background and financial strength of the parent company JSI Investments Ltd to understand support available.
• Monitor director conduct records and any changes in control or financial position in subsequent filings.