KJC INFOTECH LIMITED

Executive Summary

KJC INFOTECH LIMITED is in an early-stage financial condition characterized by very limited assets and negligible liabilities, reflecting a micro-entity just beginning operations. While the absence of debt is positive, the extremely low capital base signals under-capitalization and limited operational scale. To enhance financial health and support growth, the company needs to increase capital, grow revenues, and carefully manage costs.

KJC INFOTECH LIMITED - Analysis Report

Company Number: SC751570

Analysis Date: 2025-07-20 15:38 UTC

Financial Health Assessment of KJC INFOTECH LIMITED

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1. Financial Health Score: D

• Explanation: The company shows a very low asset base and minimal financial activity with declining current assets and net assets over two years. While there are no liabilities, the capital base is extremely thin (£75 in net assets for 2024), indicating a fragile financial condition typical of a startup or an early-stage micro-entity with minimal business operations so far.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£0	No investment in long-term assets, possibly indicating minimal operational infrastructure.
Current Assets	£75	Very limited liquid or short-term assets to cover immediate expenses.
Current Liabilities	£0	No short-term debts, a positive sign showing no immediate financial obligations.
Net Current Assets	£75	Positive but very low, suggesting limited working capital to fund day-to-day business needs.
Net Assets/Shareholders' Funds	£75	Reflects tiny equity base, indicating the company is at a very nascent stage of capitalisation.
Employee Count	1	Minimal staffing, consistent with micro-entity status and early development phase.

Additional Context:

• The company is classified as a Micro-entity, indicating it operates on a very small scale with simple accounts.
• No reported liabilities or debts, which means no financial distress from creditors.
• The shareholder, Mr. Jagadeesh Chandra Kandimalla, holds full control and voting rights, indicating centralized ownership.

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3. Diagnosis

The financial "vitals" reveal a company in the "infant" stage of its lifecycle. The extremely low net assets and current assets suggest that the business has not yet scaled operations or generated significant revenue or capital investment. While the absence of liabilities means there is no immediate financial distress, the low cash and asset base are "symptoms of under-capitalization" and limited operational activity.

The lack of fixed assets indicates the company may be service-oriented with minimal need for physical infrastructure, consistent with its SIC code 62020 (Information technology consultancy activities). However, the presence of additional SIC codes related to food services and unlicensed carriers suggests either diversification or possible misclassification that merits further scrutiny.

The fact that the company has been active since November 2022 but shows minimal financial growth or asset accumulation over two years indicates it is still in the early development or possibly pre-revenue stage.

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4. Prognosis

Given the current financial status, the outlook is cautious:

• Short term: The company can continue to operate without immediate financial strain due to zero liabilities, but its ability to invest, grow, or absorb shocks is very limited.
• Medium to long term: Without an infusion of capital or growth in current assets (e.g., receivables, cash), the company risks stagnation. The small net asset base could impair its ability to secure external financing or take on larger contracts.
• Operational risks: With only one employee and minimal assets, the company is vulnerable to operational disruptions and may struggle to scale.

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5. Recommendations

To improve financial wellness and strengthen the company's "financial health," management should consider:

• Capital Injection: Increase equity funding or secure loans to build working capital and enable operational expansion.
• Revenue Growth: Focus on customer acquisition and service delivery to increase current assets through receivables and cash flow.
• Cost Management: Maintain lean operations to align expenses with current income and avoid creating liabilities.
• Financial Planning: Develop a cash flow forecast and budget to anticipate future capital needs and avoid liquidity stress.
• Clarify Business Model: Review SIC codes and ensure the company’s activities are correctly classified for transparency and targeted growth strategy.
• Governance: With centralized control, consider involving additional expertise or advisors to provide oversight and strategic direction.

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