Company Number: 13165144

Analysis Date: 2025-07-20 16:17 UTC

1. Risk Rating: HIGH
   Kochani Properties Limited exhibits significant solvency and liquidity risks based on its persistent negative net assets and net current liabilities over the last three financial years. The company’s liabilities far exceed its current assets, casting doubt on its ability to meet short-term obligations.

2. Key Concerns:

• Severe Negative Net Assets and Working Capital Deficit: The company reported net liabilities of approximately £44,771 in 2024, slightly improved from £53,583 in 2023, but still substantially negative. Net current liabilities exceed £200,000, indicating a severe working capital shortfall.
• Minimal Cash Reserves: Cash on hand is extremely low (£711 in 2024), insufficient to cover even a fraction of current liabilities (£207,966). This raises immediate liquidity concerns.
• Very Limited Equity Base: Share capital remains nominal (£100), and accumulated losses (P&L reserve) are substantial, evidencing ongoing financial distress and potential inability to absorb future shocks.

3. Positive Indicators:

• Active Status and Up-to-Date Filings: The company is active and maintains timely filing of accounts and confirmation statements, suggesting compliance with regulatory requirements.
• Established Director and Control Structure: The current director has been in place since incorporation, indicating continuity in management. The presence of a person with significant control is clearly documented.
• Tangible Fixed Assets: The company holds tangible assets valued at £162,484, which may provide some collateral value or operational base.

4. Due Diligence Notes:

• Investigate the nature and liquidity of the tangible fixed assets to assess their realizable value.
• Review the company’s business model and cash flow forecasts to understand plans addressing the liquidity gap and solvency issues.
• Examine the terms and maturity of current liabilities to determine urgency and restructuring potential.
• Confirm whether the company has any external funding lines or shareholder support to cover working capital needs.
• Explore the reasons behind persistent losses and negative equity since incorporation in 2021.
• Verify no director disqualification or governance issues beyond those disclosed.