CHYL LTD

Executive Summary

CHYL LTD is a newly incorporated dormant company with minimal financial activity and nominal equity. While there are no signs of financial distress, the company’s financial health is currently neutral due to inactivity. To improve its financial wellness, CHYL LTD should focus on commencing trading, securing adequate capital, and implementing robust financial planning and compliance measures.

CHYL LTD - Analysis Report

Company Number: 15025180

Analysis Date: 2025-07-29 12:57 UTC

Financial Health Assessment of CHYL LTD

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1. Financial Health Score: D

Explanation:
The company is newly incorporated (July 2023) and currently dormant, with minimal financial activity and only £1 in net assets/shareholder funds. While this is not unusual for a startup or a company yet to commence trading, it indicates no operational financial health yet. The grade D reflects a "no financial activity" status, which is neither healthy nor distressed but inactive. This score would improve once the company begins trading and generates financial data reflecting its operations.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Status	Active	Company is legally operational
Account Category	Dormant	No significant financial transactions
Net Assets	£1	Minimal equity, no operational capital
Shareholder Funds	£1	Sole shareholder’s equity is nominal
Number of Employees	Not reported	Likely no employees yet
Industry SIC Codes	68100, 68201, 68209, 68320	Real estate management and operations
Filing Deadlines	Up to date	No overdue filings or penalties
Director and PSC	Single director (Hursh Mehta), 100% control	Centralised control, no external shareholders

Interpretation:

• The dormant status and minimal balance sheet indicate the company has not yet begun active business operations.
• The director and PSC (person with significant control) is the same individual, showing full ownership and control, which can simplify decision-making but may also mean limited external oversight.
• The company’s industry focus is on real estate management and operations, a sector that typically requires significant capital and operational setup before revenue generation.
• Timely filing of accounts and confirmation statements shows good compliance discipline, a positive sign for future financial health.

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3. Diagnosis

Current Financial Condition:
The company is in a "pre-operational" or "inactive" stage, showing no signs of financial distress but also no signs of financial vitality such as revenues, profits, or working capital. This is akin to a patient in a dormant state—no symptoms of illness but also no signs of active life.

• No cash flow, revenue, or expenses are reported, typical for a dormant entity.
• The company holds nominal equity capital (£1), which is statutory minimum share capital rather than operating capital.
• No liabilities or assets beyond the share capital are reported.

Underlying Business Health:
At this early stage, the company’s financial health cannot be assessed in operational terms. The lack of activity means it’s too soon to evaluate profitability, liquidity, or solvency. The potential for financial wellness depends on future business activity, capital injections, and management effectiveness.

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4. Recommendations

To move from dormancy toward a healthy financial state, CHYL LTD should consider the following actions:

• Commence Business Operations: Begin active trading or service provision consistent with the real estate management SIC codes to generate revenue streams.
• Capital Injection: Consider increasing working capital to fund initial operational costs such as staffing, marketing, and property management expenses.
• Financial Planning: Develop a detailed business plan with financial projections to monitor cash flow needs, break-even points, and profitability timelines.
• Compliance and Record-Keeping: Maintain timely filing of accounts and statutory returns to avoid penalties and ensure corporate governance.
• Seek External Advice: Engage financial advisors or accountants to establish accounting systems, tax planning, and financial controls as business activity starts.
• Monitor Key Metrics: Once trading, regularly review liquidity ratios (current ratio), profitability margins, and cash flow health to detect early symptoms of financial distress and take corrective action.

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