PRASHANT KUMAR LTD

Executive Summary

PRASHANT KUMAR LTD currently presents a high financial risk due to negative net assets and a significant working capital deficit, compounded by its reliance on director support for ongoing operations. While the company complies with filing requirements and benefits from relevant director expertise, its limited operating history and financial fragility warrant cautious evaluation. Further due diligence should focus on liquidity, director support arrangements, and business viability to fully assess the company’s sustainability.

PRASHANT KUMAR LTD - Analysis Report

Company Number: 13916798

Analysis Date: 2025-07-29 20:49 UTC

1. Risk Rating: HIGH

Justification: The company exhibits negative net assets of £5,041 as of 29 February 2024, worsening from a prior negative net asset position of £1,504 in 2023. Current liabilities significantly exceed current assets (£5,942 vs £901), indicating a working capital deficit. The company is a micro-entity with limited financial information and has only been incorporated since 2022, limiting historical performance data. The directors’ statement relies heavily on their ongoing support to maintain going concern, suggesting financial fragility.

2. Key Concerns:

• Negative net assets and worsening working capital position imply solvency risk and potential inability to meet short-term obligations.
• Reliance on directors’ support for going concern status may mask underlying liquidity issues.
• Limited operational history and small scale (micro-entity) increase uncertainty regarding sustainability and business viability.

3. Positive Indicators:

• The company is current with all statutory filings and accounts, indicating regulatory compliance and management’s attentiveness to governance.
• Directors have professional backgrounds relevant to the company’s activities (IT & Management Consultancy, Business Consultancy).
• The company operates across diverse SIC codes including educational support, IT consultancy, and online retail, which could provide multiple revenue streams.

4. Due Diligence Notes:

• Review detailed cash flow information to assess liquidity beyond the balance sheet snapshot.
• Investigate the nature and terms of any director loans or financial support underpinning the going concern assertion.
• Examine the company’s business model, contracts, and pipeline to evaluate prospects for reversing negative equity and improving working capital.
• Confirm absence of any undisclosed contingent liabilities or related party transactions that could impact financial stability.
• Consider director conduct and background checks for any adverse records; none appear from the data provided.