NAVIN JAITLY COACHING LTD

Executive Summary

NAVIN JAITLY COACHING LTD shows signs of significant financial stress due to negative net assets and substantial long-term liabilities exceeding total assets. While short-term liquidity appears adequate and regulatory compliance is maintained, the company’s deteriorating equity position and creditor obligations present a high solvency risk. Further investigation into the company’s cash flows, creditor arrangements, and operational viability is essential before considering investment.

NAVIN JAITLY COACHING LTD - Analysis Report

Company Number: 13274459

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

1. Risk Rating: HIGH
   The company exhibits a significant solvency risk as evidenced by negative net assets and substantial long-term liabilities exceeding current assets by a considerable margin.

2. Key Concerns:

• Negative Net Assets: The company’s net assets position is negative (£-14,231 in 2024), indicating liabilities exceed assets, which is a serious solvency red flag.
• Long-Term Creditors: There are large amounts of creditors falling due after more than one year (£37,047 in 2024), which may indicate borrowing or deferred payment obligations that could strain financial stability.
• Declining Equity: Shareholders’ funds have deteriorated from positive in 2021 (£9,386) to increasingly negative in 2023 and 2024, suggesting accumulated losses or withdrawals and weakening the company’s capital base.

3. Positive Indicators:

• Current Assets vs Current Liabilities: The company shows a strong positive net current assets position (£21,934 in 2024), implying short-term liquidity is currently sufficient to cover immediate obligations.
• No Overdue Filings: All statutory filings including accounts and confirmation statements are up to date, reflecting compliance with regulatory requirements.
• Single Director and PSC Consistency: The sole director and 100% shareholder is consistent, simplifying governance and decision-making.

4. Due Diligence Notes:

• Clarify the nature and terms of the long-term creditors to assess repayment obligations and any potential covenant risks.
• Review the company’s profit and loss statements to understand loss drivers and whether the negative equity reflects operational losses or other factors such as distributions or write-offs.
• Investigate cash flow statements to verify ongoing liquidity and operational cash generation, despite the negative net asset position.
• Confirm the business model sustainability given the small scale (micro-entity) and whether there is a realistic plan for returning to profitability and positive equity.
• Verify director’s intentions and financial support plans, given the sole director’s control and the company’s current financial stress signals.