PRITHTHI LTD
Executive Summary
PRITHTHI LTD exhibits a fragile financial position characterized by minimal net assets and working capital, with no fixed assets to support operations. While regulatory filings are current and stable, the company's sustainability is questionable without further insight into cash flows and operational performance. Investor caution is warranted pending deeper due diligence on liquidity and governance.
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This analysis is opinion only and should not be interpreted as financial advice.
PRITHTHI LTD - Analysis Report
Risk Rating: HIGH
The company's financial position shows extremely limited net assets (£512) with minimal working capital buffer. The lack of fixed assets and minimal equity suggests a fragile capital structure, increasing risk of insolvency if liabilities increase or cash flow deteriorates.Key Concerns:
- Minimal Net Assets and Working Capital: £512 net assets and net current assets indicate very thin financial cushioning. Any adverse event could impair solvency.
- Absence of Fixed Assets: No long-term tangible or intangible assets reduces collateral value and operational capacity.
- Single Director and Shareholder Concentration: One individual holds 75-100% shares and controls the company, potentially limiting governance oversight and increasing operational risk.
- Positive Indicators:
- Timely Filings: Accounts and confirmation statements are up to date without overdue filings, indicating compliance with regulatory requirements.
- Active Status and Micro Entity Classification: The company operates within a low-cost reporting regime appropriate for its size and has maintained active status since incorporation in 2021.
- Stable Current Assets and Liabilities: Current assets and liabilities have remained consistent over recent years, suggesting some operational stability.
- Due Diligence Notes:
- Verify nature and liquidity of current assets (£4,044) to assess if these can realistically cover current liabilities (£3,532).
- Investigate revenue streams, profitability, and cash flow trends as no P&L or turnover figures are available.
- Review director's background and capacity to sustain business, given sole control and minimal equity.
- Confirm absence of contingent liabilities or off-balance sheet obligations.
- Assess potential dependency on external funding or guarantees due to limited capital base.
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