SOHAIL NASTI PRODUCTIONS LTD

Executive Summary

SOHAIL NASTI PRODUCTIONS LTD shows signs of financial stress, notably a significant reduction in net assets and negative working capital, which raise concerns about its ability to meet short-term obligations. Although regulatory filings are up to date and ownership is centralized, liquidity constraints and operational sustainability require further scrutiny. Potential investors should request detailed cash flow data and explanations for recent financial deterioration before proceeding.

SOHAIL NASTI PRODUCTIONS LTD - Analysis Report

Company Number: 13527570

Analysis Date: 2025-07-29 15:42 UTC

1. Risk Rating: HIGH
   The company exhibits significant erosion of net assets and a precariously low equity base, combined with net current liabilities and high accruals relative to total assets. These factors suggest potential solvency and liquidity challenges despite its active status and recent incorporation.

2. Key Concerns:

• Net Assets Decline: Net assets have fallen sharply from £940 in 2023 to £82 in 2024, indicating a material deterioration in financial stability.
• Negative Working Capital: Current liabilities (£3,803) exceed current assets (£1,919) by a considerable margin (net current liabilities of -£1,884), raising liquidity concerns.
• High Accruals and Deferred Income: Accruals of £1,390 are significant relative to total net assets (£82), potentially indicating expenses recognized but not yet paid, which may pressure cash flow.

3. Positive Indicators:

• Compliance: The company has no overdue filings for accounts or confirmation statements, indicating regulatory compliance to date.
• Ownership and Control: Single director and sole shareholder structure (Dr Muhammad Sohail Nasti) facilitates clear decision-making and control.
• Micro-entity Status: The company's small scale limits complexity and overhead costs, which may be advantageous in managing operations.

4. Due Diligence Notes:

• Investigate causes of the sharp decline in net assets and whether losses are operational or accounting adjustments.
• Review cash flow statements (not provided) to assess actual liquidity and timing of payables versus receivables.
• Examine the nature and timing of accruals and deferred income to understand obligations and potential cash requirements.
• Consider the absence of employees and its impact on operational capacity and revenue generation.
• Clarify the company's business model sustainability given modest asset base and no staff.