COSMIC SK TRADING LTD

Executive Summary

COSMIC SK TRADING LTD is currently in a dormant state with minimal financial activity and nominal net assets. While regulatory compliance is strong, the lack of operational trading limits financial health assessment. To improve its financial wellness, the company should focus on initiating trading activities, building working capital, and implementing strong financial controls.

COSMIC SK TRADING LTD - Analysis Report

Company Number: 14721620

Analysis Date: 2025-07-20 14:48 UTC

Financial Health Assessment Report for COSMIC SK TRADING LTD

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1. Financial Health Score: Grade D

Explanation:
COSMIC SK TRADING LTD is a newly incorporated company (March 2023) classified as dormant for its first financial year ending March 2024. With nominal net assets of £100 and no recorded trading activity or financial transactions, the company’s financial health is very limited at this stage. Dormant status means there are no symptoms of financial distress, but equally, there are no positive signs of active business operations or cash flow generation. Hence, a score of D reflects the company’s early stage with minimal financial data to assess viability or growth potential.

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2. Key Vital Signs

Metric	Value	Interpretation
Status	Active	Company is currently registered and legally operational.
Incorporation Date	10 March 2023	Very young company with less than 2 years of existence.
Account Category	Dormant	No significant trading activity or financial transactions.
Net Assets	£100	Minimal equity; reflects only issued share capital.
Shareholders' Funds	£100	Entirely made up of share capital, no retained earnings.
Directors	2 (Including one appointed Nov 2024)	Governance structure in place; new director added recently.
Filing Status	Up to date	No overdue filings or penalties; compliant with statutory duties.

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3. Diagnosis: Business Financial Health

• Dormant Status: The company has elected dormant status, indicating no trading or active business during the reported financial year. This is akin to a patient in a stable but inactive state—no illness (distress) but also no signs of vitality (growth or cash flow).
• Minimal Financial Activity: With net assets equal to the nominal share capital (£100), the company holds no working capital, cash flow, or operational assets. This is typical for a start-up or holding entity that has yet to commence trade or generate revenue.
• Governance and Control: Strong single-person control with Mr. Somil Aggarwal owning 75-100% shares and voting rights, indicating consolidated decision-making power. A second director joined in late 2024, potentially signaling preparations for upcoming business activity.
• Regulatory Compliance: The company’s accounts and confirmation statements are filed on time, showing good compliance habits—critical for maintaining company health and avoiding penalties.
• Business Activity Sector: Classified under SIC 47990 (Other retail sale not in stores, stalls or markets), the company may intend to operate in e-commerce or remote retail sales in future periods.

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4. Recommendations: Moving Toward Financial Wellness

• Commence Trading Activities: To transition from dormancy, the company should develop and implement a business plan to start generating revenue. Active trading will introduce vital cash flow—similar to a patient starting a rehabilitation program to regain strength.
• Establish Financial Controls: Once trading begins, institute robust accounting and cash management practices to monitor liquidity, profitability, and working capital needs. Early detection of “symptoms” like cash flow shortages or rising payables can prevent financial distress.
• Build Working Capital: The current capital base (£100) is insufficient for operational needs. Consider capital injections or loans to ensure the company has “nutrients” (funds) necessary for growth.
• Monitor Compliance Rigorously: Continue timely filings and compliance to avoid regulatory penalties which can weaken company health.
• Engage Financial Advisory: As operations begin, seek expert advice on tax planning, funding options, and financial forecasting to strengthen the company’s financial “immune system.”
• Prepare for External Audit if Required: If the company grows beyond small company thresholds, prepare for audit requirements to maintain transparency and investor confidence.

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