NIVI CONSULTANCY LTD

Executive Summary

NIVI CONSULTANCY LTD is financially weak, characterized by dormant status, negative net assets, and working capital deficits. The lack of trading activity and reliance on related party loans indicate financial distress. Immediate action to generate revenue and strengthen the balance sheet is needed to improve the company’s financial health and viability.

NIVI CONSULTANCY LTD - Analysis Report

Company Number: 12604547

Analysis Date: 2025-07-29 14:17 UTC

Financial Health Assessment of NIVI CONSULTANCY LTD

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1. Financial Health Score: D

Explanation:
The company exhibits clear symptoms of financial distress, primarily due to persistent negative net assets and net current liabilities. Though the company is currently dormant and not trading, its balance sheet reveals a weak financial position with liabilities exceeding assets by a significant margin. Given the lack of trading activity and ongoing negative equity, a "D" grade reflects poor financial health with risks that need addressing to prevent further deterioration.

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2. Key Vital Signs

Metric	Latest (2024) Value	Interpretation
Net Assets (Equity)	(£4,267)	Negative net assets indicate the company owes more than it owns—a symptom of financial distress.
Net Current Assets	(£12,768)	Current liabilities exceed current assets, signaling working capital deficiency and potential liquidity issues.
Current Liabilities	£12,768	Short-term debts are significant given no current assets reported, increasing pressure to meet obligations.
Intangible Assets (Software)	£7,500	The company holds intangible assets, but these are not enough to offset liabilities.
Share Capital	£2	Minimal share capital, reflecting a very small equity base.
Trading Activity	Dormant status	No trading activity or income for multiple years, indicating the business is inactive.
Related Party Loan	£12,018	Loan from related party included in creditors; reliance on related party financing is a concern.

Interpretation of Vital Signs:
The "vital signs" reveal a company with no active trading, a working capital deficit, and negative net worth. The dormant status means no revenue inflows to alleviate liabilities. The related party loan suggests the company is being kept afloat by external financing rather than operational cash flow.

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3. Diagnosis

NIVI CONSULTANCY LTD is effectively in a state of financial hibernation, reflected by its dormant filing status and zero trading activity over multiple years. The persistent negative net assets and net current liabilities are strong symptoms of financial weakness. The company's balance sheet resembles a patient with chronic illness—while not currently in immediate collapse, the lack of active income and reliance on loans to cover liabilities point to an unhealthy financial condition.

The directors have adopted the "going concern" basis, assuming the company can continue operating. However, this assumption is tenuous given the absence of trading and ongoing negative equity. The company’s financial position is precarious: without generating revenue or additional capital injections, the risk of insolvency symptoms worsening is high.

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4. Recommendations

To improve the financial wellness of NIVI CONSULTANCY LTD, the following steps are advised:

• Initiate Trading or Revenue Generation:
  Transition from dormant status by commencing commercial operations or consulting activities to generate cash inflows and improve liquidity.

• Strengthen Capital Base:
  Consider capital injection—either through shareholder equity increase or external investment—to restore positive net assets and reduce dependency on related party loans.

• Manage and Reduce Liabilities:
  Develop a plan to repay or restructure the related party loan and other creditors to reduce current liabilities and improve working capital.

• Financial Monitoring:
  Implement regular financial reviews to monitor cash flow, liabilities, and asset utilization to detect early symptoms of financial distress.

• Explore Cost Management:
  Even if dormant, minimize any costs or obligations to prevent further erosion of equity.

• Consider Professional Advice:
  Engage finance or restructuring experts to evaluate the viability of the business model and assist in turnaround strategies.

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Summary

NIVI CONSULTANCY LTD is currently dormant with no trading activity, showing persistent negative equity and working capital deficits, which are clear symptoms of financial distress. Without intervention, the company's financial health is fragile, reliant on related party loans to meet obligations. To restore financial vitality, the company must activate operations, improve capital structure, and manage liabilities prudently.