ARYA ENTERPRISES GLOBAL LIMITED

Executive Summary

ARYA ENTERPRISES GLOBAL LIMITED currently exhibits negative net assets and significant liquidity challenges, indicating early financial distress. As a newly formed real estate company, it must urgently secure longer-term financing and develop operational income to stabilize its financial position and avoid insolvency risk.

ARYA ENTERPRISES GLOBAL LIMITED - Analysis Report

Company Number: 15221753

Analysis Date: 2025-07-29 19:03 UTC

Financial Health Assessment Report: ARYA ENTERPRISES GLOBAL LIMITED

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1. Financial Health Score: D

Explanation:
The company exhibits significant financial distress indicated by negative net assets and liabilities exceeding total assets. As a micro-entity, the balance sheet shows a fragile capital structure with current liabilities far outweighing current assets, signaling liquidity concerns. The company is newly incorporated (October 2023) and has not generated operational results or cash inflows sufficient to cover its short-term obligations.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	306,100	Represents investment in long-term assets, likely property or equipment related to real estate.
Current Assets	17,436	Short-term assets (cash, receivables) are very low, indicating limited liquid resources.
Current Liabilities	325,484	High short-term debts due within one year, creating immediate financial pressure.
Net Current Assets	-308,048	Negative working capital ("symptom of distress"), showing inability to meet short-term debts.
Total Assets less CL	-1,948	Total assets minus short-term debts is negative, meaning the company owes more than it owns.
Net Assets (Shareholders' Funds)	-1,948	Negative equity, indicating shareholders’ funds are eroded and the company is insolvent on paper.
Employees	0	No employees, suggesting no operational income generation yet or a holding company structure.

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3. Diagnosis

The financial "vital signs" of ARYA ENTERPRISES GLOBAL LIMITED reveal a company with severe liquidity and solvency issues. The negative net assets and working capital deficit are clear "symptoms" of financial distress. The company’s current liabilities exceed both its current and total assets, suggesting it may struggle to meet immediate obligations without additional capital infusion or restructuring.

Given the company's status as a newly incorporated private limited company engaged in real estate activities (owning, letting, buying and selling), it is likely in an early investment or acquisition phase. The significant fixed assets figure likely represents property or leased real estate investments acquired at start-up, funded largely by short-term debt or similar obligations. The absence of employees and operational revenue implies the company is not yet generating cash inflows from operations to support these liabilities.

Overall, the diagnosis is that ARYA ENTERPRISES GLOBAL LIMITED is experiencing early-stage financial strain with a capital structure heavily reliant on debt. This presents a risk of insolvency if short-term liabilities are not managed or converted into longer-term financing and if operational cash flow is not developed soon.

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4. Recommendations

To improve the financial health and ensure sustainable business operations, the company should consider the following specific actions:

• Strengthen Liquidity:
  Seek additional equity capital or long-term financing to reduce reliance on short-term creditors and improve working capital. This will address the "symptoms" of negative net current assets.

• Restructure Debt Profile:
  Negotiate with creditors to extend payment terms or convert short-term liabilities into long-term debt, easing immediate cash flow pressures.

• Accelerate Operational Cash Flow:
  Develop and execute a clear business plan to generate rental income or property sales revenue, improving current asset turnover and liquidity.

• Cost Control and Efficiency:
  Maintain a lean operational structure (currently zero employees) to conserve cash until stable income streams are established.

• Financial Monitoring:
  Institute regular financial health checks focusing on cash flow forecasts, liquidity ratios, and solvency measures to detect early warning signs.

• Professional Advisory:
  Engage with financial advisors or turnaround specialists to assist with restructuring plans and strategic financing.

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Summary

ARYA ENTERPRISES GLOBAL LIMITED is at a critical early stage with negative equity and strained liquidity due to high short-term liabilities relative to assets. The company shows "symptoms" of financial distress typical of early real estate investment ventures funded by debt. Immediate focus on improving liquidity, restructuring debt, and generating operational cash flow is essential to prevent insolvency risk and restore financial health.