ASIAN BASKET LIMITED

Executive Summary

Asian Basket Limited is currently in a fragile financial state characterized by negative net assets and working capital deficits, indicating liquidity and solvency challenges. Immediate actions to improve cash flow, reduce liabilities, and possibly inject new capital are essential to stabilize the company’s financial health and avoid insolvency risks.

ASIAN BASKET LIMITED - Analysis Report

Company Number: 13158823

Analysis Date: 2025-07-29 20:58 UTC

Financial Health Assessment for Asian Basket Limited

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1. Financial Health Score: D

Explanation:
Asian Basket Limited exhibits significant financial distress indicators, notably persistent negative net current assets and net liabilities. The company’s working capital position is unhealthy, and its shareholders’ funds are negative, signaling accumulated losses or obligations exceeding assets. This grade reflects a fragile financial state that requires urgent attention to restore viability.

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2. Key Vital Signs

Vital Sign	2023 Figure	Interpretation
Current Assets	£11,407	Limited liquid resources available in the short term
Current Liabilities	£20,278	Obligations due soon exceeding current assets
Net Current Assets (Working Capital)	-£8,871	Negative working capital; symptoms of liquidity stress
Net Assets	-£8,871	Total liabilities exceed assets; indicates insolvency risk
Shareholders’ Funds	-£8,871	Negative equity; accumulated losses outweigh investments
Share Capital	£100	Very minimal capital base; limited buffer for losses
Employees	0	No staff, possibly indicating limited operational scale

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3. Diagnosis

Asian Basket Limited’s financial condition is symptomatic of a company struggling with liquidity and solvency. The persistent negative working capital over recent years means the company does not have enough short-term assets to cover its short-term liabilities, a classic "cash flow anemia." Negative net assets and shareholders’ funds suggest accumulated losses or liabilities exceeding the company’s assets, which is akin to a patient whose vital organs are underperforming.

The company’s micro-entity status implies simplified reporting and likely a smaller operational scale; however, the financial distress indicated raises concerns about its ability to continue as a going concern without intervention. The absence of employees may reflect a non-operational or minimally operational business, possibly outsourcing or minimal trading activity.

Given that the company remains active, it is critical to monitor if it can improve cash inflows or restructure liabilities to alleviate its liquidity crunch. Without such improvement, the prognosis is guarded, as continued negative equity could lead to insolvency procedures.

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4. Recommendations

To improve financial wellness and avert further distress, Asian Basket Limited should consider the following:

• Improve Cash Flow Management:
  Develop a cash flow forecast to identify shortfalls and manage payment timings. Explore ways to accelerate receivables and defer non-essential payables to ease liquidity pressure.

• Reduce Current Liabilities:
  Negotiate with creditors to extend terms or reduce outstanding obligations. Evaluate any non-critical expenses or liabilities for possible cutbacks.

• Capital Injection:
  Consider raising additional equity capital or obtaining short-term financing to improve liquidity and restore positive shareholders’ equity.

• Operational Review:
  Assess business operations to identify cost-saving opportunities or revenue-enhancing activities. Given the zero employee count, consider whether operational scale aligns with financial capacity.

• Seek Professional Advice:
  Engage with financial advisors or insolvency practitioners early to explore restructuring options before distress worsens.

• Regular Financial Monitoring:
  Implement regular internal reviews of key financial metrics to detect early symptoms of distress and act promptly.

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