SHUBHAM EVENT PLANNERS LTD

Executive Summary

SHUBHAM EVENT PLANNERS LTD is currently dormant with negative net assets and net current liabilities, indicating financial fragility and dependence on director support. Without trading activity, the company lacks healthy cash flow and faces liquidity challenges. Immediate focus should be on strengthening capital, managing liabilities, and preparing for potential trading to improve financial wellness.

SHUBHAM EVENT PLANNERS LTD - Analysis Report

Company Number: 12507101

Analysis Date: 2025-07-29 13:46 UTC

Financial Health Assessment for SHUBHAM EVENT PLANNERS LTD

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1. Financial Health Score: D

Explanation:
The company is currently dormant, with no trading activity reported. Its balance sheet reveals persistent net liabilities and negative shareholders’ funds, indicating financial distress. The lack of operating assets and continued net current liabilities suggest a fragile financial position. Given these factors, a grade of D reflects significant caution but not immediate insolvency, as the company remains under control of its director and not in liquidation.

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2. Key Vital Signs:

Metric	Latest Value (2025)	Interpretation
Current Assets	£1,275	Very low; primarily director’s loan receivable
Current Liabilities	£2,483	Over double the current assets; short-term obligations unmet
Net Current Assets	-£1,208	Negative working capital ("symptom of liquidity strain")
Net Assets / Shareholders’ Funds	-£1,358	Negative equity ("symptom of balance sheet weakness")
Share Capital	£1.00	Minimal paid-in capital; no buffer for losses
Company Status	Dormant	No trading activity, no revenue generation
Director Advances	£1,275	Director has loaned money to company; interest-free, repayable on demand

Interpretation of Vital Signs:

• The company’s current assets are very low and mainly consist of a director’s loan, rather than cash or receivables from trading.
• Current liabilities exceed current assets, indicating the company cannot cover short-term debts with available resources—a liquidity weakness.
• Negative net assets and shareholders’ funds indicate accumulated losses or insufficient capital injections, reflecting underlying financial weakness.
• Being dormant means no active operations generating revenue or cash flow; the company relies on director support to meet obligations.
• The director’s loan is an important "lifeline" but is unsecured and interest-free, suggesting limited external funding or credit access.

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3. Diagnosis:

SHUBHAM EVENT PLANNERS LTD is currently in a state of financial hibernation, with no active trading but ongoing financial obligations. The company exhibits clear "symptoms of distress" with persistent negative working capital and net liabilities. The financial statements show that the business has not generated revenue to offset liabilities, relying instead on director advances to keep the company afloat. The minimal capital and negative equity suggest the business has either not yet commenced trading or has struggled with initial losses.

The company’s dormant status means it avoids operational risks but also lacks "healthy cash flow" from business activities. Without trading, the company depends on continuous director support or external capital to maintain solvency. The financial position is fragile; if the director were to withdraw support or if liabilities increase, the company risks insolvency.

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4. Recommendations:

1. Review Business Strategy:
   Evaluate the feasibility and timing of transitioning from dormant status to active trading. A clear business plan with realistic revenue projections is essential.

2. Strengthen Capital Base:
   Consider injecting additional equity or securing external funding to improve net assets and working capital. This will provide a buffer against liabilities.

3. Manage Liabilities:
   Negotiate with creditors to extend payment terms or reduce liabilities where possible, to alleviate short-term cash flow pressure.

4. Director Loan Management:
   Formalize terms around director advances including repayment plans or conversion to equity to clarify financial obligations and improve balance sheet transparency.

5. Financial Monitoring:
   Implement regular financial reviews to detect early signs of distress once trading begins. Monitor cash flow closely to maintain liquidity health.

6. Consider Professional Advice:
   Engage financial advisors or accountants to assist with restructuring, funding options, and compliance with filing requirements.

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