Company Number: 13621560

Analysis Date: 2025-07-20 15:19 UTC

1. Risk Rating: LOW
   Kalathil Medics Limited demonstrates a sound financial position with strong net current assets and positive net assets. The company is compliant with filing deadlines and shows no signs of distress or regulatory non-compliance. The capital structure is modest but supported by increasing retained earnings, indicating operational profitability and sustainability.

2. Key Concerns:

• Limited turnover and size information: The company’s filed accounts do not disclose turnover or detailed profit and loss data, limiting insight into revenue trends and operational performance.
• Director's advances: There is a fluctuating director loan balance (Dr. A L Kalathil), which, while currently negative (repayable to the company), warrants monitoring for potential governance concerns or informal financing arrangements.
• Concentrated control and management: Both principal shareholders and directors reside at the same address, indicating a closely held structure that may present governance or succession risks.

3. Positive Indicators:

• Strong liquidity: Cash increased significantly from £34.5k to £64.7k year-over-year, with net current assets improving to £55.3k, demonstrating ample short-term resources to meet liabilities.
• Growing equity base: Shareholders’ funds nearly doubled from £28.4k to £56.8k, reflecting retained earnings accumulation and a strengthening balance sheet.
• Compliance: The company has no overdue filings for accounts or confirmation statements, evidencing good regulatory compliance and governance practices.
• Stability: The company has been active since 2021 with no indication of distress, liquidation, or administration.

4. Due Diligence Notes:

• Obtain detailed turnover and profitability figures to assess operational sustainability and revenue trajectory.
• Review director loan agreements and policies to ensure appropriate controls and transparency around related party transactions.
• Confirm the business model and revenue sources, especially given the SIC codes covering medical specialist practice and real estate activities, to understand diversification and risk exposure.
• Assess any contingent liabilities or provisions beyond the £234 noted to evaluate potential off-balance sheet risks.
• Verify the adequacy of insurance and licensing relevant to medical practice activities to ensure regulatory compliance beyond company filings.