RAVULA SOLUTIONS LIMITED

Executive Summary

Ravula Solutions Limited shows signs of financial distress with negative net assets and substantial long-term liabilities exceeding current assets, posing a high solvency risk. The absence of employees and lack of trading income raise concerns about operational sustainability. However, statutory filings are up to date, and further due diligence into creditor composition and cash flows is recommended to fully assess financial stability.

RAVULA SOLUTIONS LIMITED - Analysis Report

Company Number: 13261414

Analysis Date: 2025-07-20 17:57 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (shareholders' funds are negative and worsening), significant long-term liabilities exceeding current assets, and no operational employees, indicating elevated solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: Net assets declined to -£4,075 as of 31 March 2024, indicating the company’s liabilities exceed its assets, a classic solvency red flag.
• Significant Long-Term Creditors: Creditors due after more than one year total £269,764, which is substantially higher than current assets (~£274k), raising concerns about the ability to meet long-term obligations.
• No Employees / Operational Activity: The company reported zero employees and no income statement filed, suggesting minimal or no active trading, which questions operational sustainability.

3. Positive Indicators:

• Timely Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory obligations.
• Stable Current Assets: Current assets remain stable around £274k, mostly debtors, which may represent receivables or related party balances.
• Single Experienced Director and PSC: Control consolidated under a single director and PSC potentially simplifies governance and decision-making.

4. Due Diligence Notes:

• Clarify Nature of Long-Term Creditors: Investigate the composition and terms of the £269,764 creditors due after one year to assess repayment risk and whether these are related party loans or external debt.
• Review Cash Flow and Income Streams: Obtain detailed cash flow statements and income information to confirm if the company generates sufficient cash to service debts.
• Operational Activity Verification: Confirm whether the company is actively trading or holding assets only; the absence of employees and income statement may indicate dormancy or asset management only.
• Director Background Check: While no disqualifications are evident, verifying the director’s background and financial standing could provide insights into governance quality.