ZJ CONSULTING LIMITED

Executive Summary

Zj Consulting Limited shows persistent liquidity challenges due to its negative working capital and minimal equity base, placing it at high risk from a solvency perspective. However, its compliance with filing deadlines and focused IT consultancy activities provide some operational stability. Further investigation into its liabilities and cash flow is recommended to fully assess financial sustainability.

ZJ CONSULTING LIMITED - Analysis Report

Company Number: 13165324

Analysis Date: 2025-07-29 20:54 UTC

1. Risk Rating: HIGH
   The company exhibits a persistent and significant net current liability position, indicating liquidity stress and an inability to cover short-term obligations with current assets. The net assets are minimal, and the share capital is nominal, which raises concerns over financial stability and solvency.

2. Key Concerns:

• Negative Working Capital: Across the last four years, current liabilities exceed current assets by approximately £9,000, suggesting ongoing liquidity constraints.
• Minimal Net Assets and Equity: Net assets have barely changed, holding at £942, with share capital only £1, indicating limited financial buffer and capital base.
• Single Director and Shareholder Control: Full control by one individual (Mr Harsh Jain) may imply limited governance oversight and potential concentration risk.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, showing regulatory compliance and good administrative discipline.
• Consistent Business Activity Classification: The SIC codes indicate focused activity in IT consultancy and software development, which can be scalable and low overhead.
• No Auditor Requirement: As a micro-entity, exemption from audit reduces costs and administrative burden.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to assess whether these are trade payables, loans, or other obligations and their terms.
• Review cash flow statements and bank balances (not available here) to confirm liquidity position and operating cash flows.
• Assess business operations and revenue streams to understand the sustainability of the business model given the persistent working capital deficit.
• Consider director’s financial support or plans to recapitalize or reduce liabilities.
• Confirm no director disqualifications or regulatory issues beyond Companies House filings and public records.