YASH CONSULTANCY LIMITED

Executive Summary

YASH CONSULTANCY LIMITED’s financial health is poor, characterized by negative net assets and very limited liquid resources, signaling significant financial distress. Immediate action to improve cash flow, restructure debt, and reassess operations is critical to avoid insolvency. Without intervention, the prognosis is unfavorable for sustained business viability.

YASH CONSULTANCY LIMITED - Analysis Report

Company Number: 13564470

Analysis Date: 2025-07-20 16:40 UTC

Financial Health Assessment of YASH CONSULTANCY LIMITED

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1. Financial Health Score: D (Poor)

Explanation:
YASH CONSULTANCY LIMITED exhibits signs of financial distress, primarily due to negative net assets and high levels of liabilities relative to minimal current assets. The company's balance sheet shows a persistent and increasing deficit, indicating a fragile financial position. Although it remains active and compliant with filings, the financial "vital signs" suggest urgent attention is needed to prevent further deterioration.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	100	Extremely low cash and short-term assets — "starvation" of liquid resources.
Current Liabilities	11,538	High short-term obligations compared to assets; risk of cash flow crunch.
Net Current Assets	100	Marginal working capital; effectively negligible buffer for short-term debts.
Creditors due after 1 year	-11,538	Long-term liabilities equal to current liabilities, increasing leverage.
Net Assets (Total Equity)	-11,438	Negative net worth—"symptom of severe financial distress."
Shareholders Funds	-11,438	Reflects accumulated losses or capital erosion.
Employees	0	No staff, possibly indicating minimal operational activity or outsourcing.

Interpretation:

• The company’s negative net assets (equity) indicate it owes more than it owns, a critical sign of insolvency risk.
• Current assets are critically low; the company holds only £100 in short-term assets against liabilities over £11,000, signaling a "drying up" of cash—akin to a patient severely dehydrated.
• The balance sheet shows worsening from 2021 (£3,536 net assets) to 2024 (-£11,438), indicating a deteriorating financial condition despite the company being only a few years old.
• The absence of employees implies low operational scale or reliance on contractors, but also can mean limited capacity to generate revenue internally.

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3. Diagnosis

YASH CONSULTANCY LIMITED is in a financially critical state resembling a patient showing signs of systemic failure: the company’s liabilities significantly outweigh its assets, and working capital is almost non-existent. The negative net assets suggest the business is technically insolvent, raising concerns about its ability to meet ongoing obligations without external intervention. This condition may stem from sustained operating losses, capital withdrawals, or unserviced debts.

The company’s status as a micro-entity with minimal assets and zero employees points to either a startup in a challenging development phase or a dormant-like operation with limited trading activities but ongoing liabilities.

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4. Recommendations

To improve financial wellness and avert possible insolvency, the following steps are advised:

• Immediate Cash Flow Management:
  Inject fresh capital or secure short-term financing to build a "healthy cash flow" buffer. Without liquidity, the company risks defaulting on creditors.

• Debt Restructuring:
  Engage with creditors to negotiate repayment terms or reduce liabilities. This could alleviate pressure on current liabilities and improve net asset position.

• Operational Review:
  Evaluate the business model and revenue streams. If the company is not generating income, consider pivoting services or scaling operations to increase inflows.

• Cost Control:
  Given zero employees, review any ongoing costs or overheads. Minimize unnecessary expenses to preserve cash.

• Seek Professional Advice:
  Early consultation with insolvency practitioners or financial advisors can provide tailored recovery strategies and help avoid forced liquidation.

• Transparency with Stakeholders:
  Communicate clearly with shareholders and creditors about financial challenges and plans to restore solvency.

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