PRAVARA LIMITED
Executive Summary
PRAVARA LIMITED is currently a dormant company with no trading activity, reflected by minimal net assets and no liabilities. The company is financially stable with no distress symptoms and maintains full compliance with statutory filing requirements. For future financial wellness, the company should ensure continued compliance if remaining dormant, or prepare for active trading with appropriate financial planning and monitoring.
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This analysis is opinion only and should not be interpreted as financial advice.
PRAVARA LIMITED - Analysis Report
Financial Health Assessment for PRAVARA LIMITED
1. Financial Health Score: Grade A
Explanation:
PRAVARA LIMITED is classified as a dormant company with minimal financial activity. Dormant status means the company has not engaged in transactions that affect its financial position during the reported period. The financial health is rated A because the company shows no symptoms of financial distress such as liabilities, losses, or operational risks. It maintains a clean, simple balance sheet with minimal financial complexity, indicating a stable but inactive financial condition.
2. Key Vital Signs
Metric | Value | Interpretation |
---|---|---|
Company Status | Active | The company is currently registered and operational, though dormant. |
Account Category | Dormant | No significant financial transactions during the year. Indicates inactivity. |
Net Assets | £1 | Minimal net assets, reflecting only the nominal share capital. |
Shareholders’ Funds | £1 | Equity consists solely of one ordinary share, no retained earnings or reserves. |
Financial Transactions | None reported | No revenue, expenses, or operational cash flows. |
Filing Compliance | Up to date | Accounts and returns filed on time, no overdue filings. |
Director and PSC | Single Director (Talvinder Singh Rai), PSC with 25-50% shares and voting rights | Ownership and control clearly held by one individual, no complexity in governance. |
3. Diagnosis: What the Financial Data Reveals
The company is in a state of financial dormancy—akin to a patient in a stable, resting phase with no active symptoms or stressors. The balance sheet shows only the nominal issued share capital of £1, with no assets or liabilities, reflecting no operational activity.
This means:
- No operational risk: Since there is no trading or financial activity, there are no immediate risks from debts, cash flow problems, or losses.
- No growth or income generation: Dormancy indicates the company is not currently generating revenue or profits.
- Low complexity: The company structure is simple, controlled by a single director and shareholder, minimizing governance risks.
- Compliance is healthy: Timely filing of accounts and confirmation statements shows good administrative health and regulatory compliance.
In medical terms, the company is "asymptomatic"—healthy but inactive. There is no financial distress, but also no active financial vitality.
4. Recommendations: Specific Actions to Improve Financial Wellness
If intended to activate trading or business operations:
- Prepare to file full accounts reflecting operational income, expenses, assets, and liabilities in the next accounting period.
- Monitor cash flow and profitability once trading starts to avoid symptoms of financial distress such as liquidity shortages or increasing debts.
If continuing dormant status:
- Maintain timely compliance with Companies House filing deadlines to avoid penalties—this includes dormant accounts and confirmation statements.
- Keep director and PSC information up to date.
- Regularly review the company’s dormant status to ensure it remains appropriate for business needs.
Planning for future growth:
- Develop a business plan and financial forecasts in preparation for active trading.
- Seek professional advice on tax implications and financial structuring before commencing operations.
- Build cash reserves or secure financing to support initial business activities.
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