L CHOPRA LIMITED

Executive Summary

L Chopra Limited presents a low-risk profile based on its strong liquidity, positive net asset growth, and timely statutory compliance. The business is small and closely held, which introduces some governance concentration risk, but currently maintains financial stability and operational continuity. Further review of related-party transactions and growth prospects is recommended to ensure ongoing sustainability.

L CHOPRA LIMITED - Analysis Report

Company Number: 13255114

Analysis Date: 2025-07-20 18:05 UTC

1. Risk Rating: LOW
   L Chopra Limited demonstrates strong liquidity and solvency metrics, with net current assets significantly exceeding current liabilities and positive net assets. The company is active, compliant with filing deadlines, and shows stable financial performance over recent years.

2. Key Concerns:

• Small Scale of Operations: The company operates with a single employee and limited tangible assets, which could constrain growth potential and operational scalability.
• Dependence on a Single Director/PSC: Miss Lalita Chopra holds 75-100% ownership and control, creating concentration risk in governance and decision-making.
• Director Loan Balance: The director’s loan fluctuates but remains modest; scrutiny on related party transactions is advisable to ensure transparency and appropriate terms.

3. Positive Indicators:

• Strong Liquidity Position: Cash holdings (~£97k) comfortably cover short-term liabilities (~£15k), with net current assets improving year-on-year.
• Consistent Net Asset Growth: Shareholders’ funds increased from £49k in 2021 to £84k in 2024, indicating retained earnings and financial strengthening.
• Regulatory Compliance: The company has filed accounts and confirmation statements on time, avoiding penalties and demonstrating good governance adherence.
• No Audit Requirement: The company qualifies for audit exemption under the small companies regime, reducing administrative burden and costs.

4. Due Diligence Notes:

• Review the nature and terms of the director’s loan to assess any potential related-party risk or repayment schedule concerns.
• Assess business model sustainability given the small workforce and limited fixed assets, including client diversification and revenue sources.
• Verify any contingent liabilities or off-balance-sheet commitments not disclosed in the accounts that may impact solvency.
• Confirm the robustness of internal controls and governance given the sole director structure and control concentration.
• Investigate any strategic plans or investment to support growth beyond current scale.