Company Number: 13108172

Analysis Date: 2025-07-20 15:27 UTC

1. Risk Rating: HIGH

Justification: Nepai Ltd’s latest financials (year ended 31 January 2024) show a significant deterioration in financial position, with net liabilities of £1,072 and negative net current assets of £1,092. The company has moved from positive net assets of £707 in the prior year to a negative net asset position within one year. The absence of employees and minimal fixed assets combined with negative working capital raises concerns about the company’s ability to meet short-term obligations and sustain operations.

2. Key Concerns:

• Liquidity Strain: Current liabilities exceed current assets by a large margin (£1,431 vs. £339), indicating potential cash flow problems and difficulty in meeting immediate debts.
• Negative Net Worth: Shareholders’ funds have swung from £707 positive to £1,072 negative, signaling accumulated losses or write-downs and diminished financial stability.
• No Audit and Minimal Disclosure: The accounts are unaudited and prepared under micro-entity provisions with no profit and loss account filed, limiting transparency on operational performance and cash flow generation.

3. Positive Indicators:

• Timely Filing: Both accounts and confirmation statements are up to date and not overdue, demonstrating compliance with statutory filing requirements and governance.
• Experienced Directors: The two directors have relevant professional backgrounds in software engineering and data science, aligned with the company’s industry classification and web development focus.
• Active Website Presence: The company maintains an active domain with a clear business description, suggesting ongoing commercial activity.

4. Due Diligence Notes:

• Investigate the nature and reasons behind the sharp decline in net assets and working capital during the latest financial year, including any significant write-offs or liabilities incurred.
• Review cash flow statements and profit and loss data (if available) to assess operational profitability and cash generation trends.
• Confirm whether any external financing or shareholder support is in place or planned to address the current negative equity and liquidity position.
• Assess business model viability given the absence of employees and minimal fixed assets—determine if the company is relying on subcontractors or is in a pre-revenue/start-up phase.
• Verify any contingent liabilities or off-balance sheet risks not captured in the micro-entity accounts.