SASHA VARA LTD

Executive Summary

SASHA VARA LTD currently exhibits critical financial distress, with net assets depleted to zero and no recorded operating assets, suggesting minimal or paused business activity. Immediate actions to restore cash flow, inject capital, and review operations are essential to avoid further deterioration. Without intervention, the company’s financial health may worsen, risking viability.

SASHA VARA LTD - Analysis Report

Company Number: 13261315

Analysis Date: 2025-07-20 18:09 UTC

Financial Health Assessment Report for SASHA VARA LTD
Date of Analysis: Post 31 March 2024 (latest financial year end)

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1. Financial Health Score: D

Explanation:
The company's financial metrics indicate a very weak financial position. Net assets and shareholders’ funds have dropped to zero in the most recent year, signaling a depletion of equity. Absence of current assets and liabilities suggests minimal business activity or accounting entries, which can be a symptom of dormancy or operational pause rather than growth. The score reflects significant concerns about the company’s financial vitality.

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2. Key Vital Signs:

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	0	0	No tangible or intangible assets to support operations
Current Assets	0	0	No cash, debtors, or stock detected
Current Liabilities	0	0	No short-term debts; neutral for liquidity
Net Current Assets	0	0	Working capital is neutral; no buffer for expenses
Net Assets (Equity)	0	3,500	Equity eroded to zero in 2024; a sign of financial distress
Share Capital	1	1	Minimal capital invested
Average Number of Employees	1	1	Very small workforce; micro entity size

Interpretation of Vital Signs:

• Equity Erosion: The drop from £3,500 net assets in 2023 to £0 in 2024 indicates losses or write-offs absorbing all shareholder funds, a critical warning sign.
• No Current Assets or Liabilities: The absence of cash or receivables points to either inactivity or extremely limited operations, which may impair the company’s ability to sustain itself.
• Minimal Capital Base: With £1 share capital, the company started with very modest funding, limiting its capacity to absorb losses or invest.
• Micro Entity Profile: The company fits the smallest UK filing category, indicating small scale and limited reporting requirements.

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3. Diagnosis:

Like a patient showing symptoms of financial fatigue, SASHA VARA LTD presents several warning signs:

• Zero Net Assets: The company’s equity has been fully depleted, which can be likened to a patient who has lost vital reserves. This undermines financial stability and the ability to secure credit or absorb shocks.
• Lack of Operating Resources: No fixed or current assets in the latest year suggest the business either paused trading or disposed of assets, which may reflect operational difficulties or restructuring.
• No Recorded Liabilities: While this might seem positive, the lack of liabilities combined with no assets hints at minimal or halted activity rather than healthy balance.
• Limited Funding and Scale: With very low share capital and only one employee, the company’s financial resilience is limited, akin to a small organism vulnerable to stressors.

Overall, these symptoms indicate a company in a fragile state that may be struggling to maintain normal business function or growth.

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4. Recommendations:

To restore financial wellness and improve vitality, consider the following actions:

• Conduct a Cash Flow Review: Investigate the absence of cash or current assets. Establish a healthy cash flow cycle to support day-to-day operations.
• Inject Capital or Secure Funding: Additional equity or external funding could rebuild the company’s financial buffer and support business activities.
• Review Business Operations: Evaluate if the company is currently trading or dormant. If inactive, decide on a reactivation plan or orderly closure to prevent further depletion.
• Cost Management: With a tiny workforce and minimal assets, tight cost control is essential to avoid further equity erosion.
• Regular Monitoring: Establish financial reporting checkpoints to detect distress symptoms early and respond promptly.
• Seek Professional Advice: Engage financial or business advisors to develop a turnaround strategy or to plan for sustainable growth.

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