Company Number: 13802479

Analysis Date: 2025-07-29 17:00 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ashapura Limited operates in the real estate letting sector with a micro-entity profile. The company has shown a modest improvement in net assets from a negative position (£-2,297 in 2022) to a slight positive (£5,715 in 2023). However, a significant concern is its persistent negative net current assets (£-122,552 in 2023), indicating short-term liquidity pressure. The long-term liabilities (£315,995) are substantial relative to net assets, putting strain on financial flexibility. Directors are individuals with control and appear stable, but the company’s financial structure suggests risk if reliant on external funding or facing economic downturns. Approval is conditional upon close monitoring of liquidity and cash flow improvements or additional collateral/security.

2. Financial Strength:
   Balance sheet shows fixed assets of £444,636 consistently over the last three years, likely property assets supporting the business model. Current assets have improved slightly (£15,080 in 2023 vs. £1,601 in 2022) but remain insufficient to cover current liabilities (£137,632 in 2023). The company carries large long-term liabilities (£315,995) which exceed shareholder funds, signaling a leveraged position. The marginal positive net asset position in 2023 is largely due to fixed assets exceeding liabilities but working capital deficits highlight vulnerability to short-term obligations.

3. Cash Flow Assessment:
   Working capital is negative and only marginally improved, indicating potential cash flow constraints in covering immediate obligations. The increase in current assets is positive but still not enough to offset current liabilities. The company has two employees, suggesting low operational costs, but no detailed cash flow statements are available to assess operational cash generation. The large creditor balances due within and beyond one year suggest dependency on external financing or delayed payments, which could impair liquidity under stress.

4. Monitoring Points:

• Net current assets and liquidity ratios to track improvement or deterioration in short-term financial health.
• Timeliness and completeness of accounts and confirmation statement filings (currently up to date).
• Changes in long-term liability levels and any refinancing or repayment plans.
• Operational cash flow generation once available to confirm ability to meet ongoing obligations.
• Any changes in ownership or director profiles that might affect governance or strategic direction.