LE RAAJ FINE INDIAN LTD

Executive Summary

LE RAAJ FINE INDIAN LTD exhibits a strong and improving financial position with healthy liquidity and growing equity, reflecting stable operational performance. While current financial "vital signs" are positive, enhancing profitability insights and strategic cash flow management will support sustained growth and resilience in the competitive licensed restaurant sector.

LE RAAJ FINE INDIAN LTD - Analysis Report

Company Number: 13616958

Analysis Date: 2025-07-29 20:10 UTC

Financial Health Assessment for LE RAAJ FINE INDIAN LTD

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1. Financial Health Score: B

Explanation:
LE RAAJ FINE INDIAN LTD demonstrates a solid improvement in its financial position over the last two years with increasing net current assets and net assets. The company operates within the micro-entity category and shows healthy working capital and equity growth, indicating stable financial footing. However, given the limited scale and absence of detailed profitability data, a "B" grade reflects good health with room for further strengthening, especially in revenue growth and profitability transparency.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Current Assets	63,355	35,332	Healthy increase in short-term assets, good liquidity buffer.
Current Liabilities	33,414	28,199	Slight increase but manageable relative to assets.
Net Current Assets (Working Capital)	29,941	7,133	Significant improvement; indicates improved ability to cover short-term debts.
Net Assets (Shareholders’ Funds)	29,941	7,133	Growth reflects retained earnings or capital injection, strengthening equity base.
Average Employees	14	14	Stable workforce size; no increase in labour costs suggesting controlled expenses.

Interpretation:
Like a patient showing improved vital signs, the company’s liquidity and net asset position have strengthened markedly from 2022 to 2023. The working capital increase is a positive symptom of financial health, providing a cushion against short-term obligations and operational cash flow needs.

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3. Diagnosis

LE RAAJ FINE INDIAN LTD is financially stable and improving, exhibiting the following characteristics:

• Healthy Cash Flow Indicators: The rise in current assets, especially cash or receivables, versus current liabilities suggests the company can meet immediate financial demands—a key sign of financial wellness.
• Improving Equity Position: The net assets have more than quadrupled in one year, which indicates effective capital management or reinvestment of profits, enhancing the company’s solvency.
• Stable Workforce: Maintaining the same number of employees suggests operational stability without cost inflation from payroll increases.
• Micro-Entity Scale: As a micro-entity, the company benefits from simplified reporting but limited visibility on profitability and long-term financial trends.

No symptoms of financial distress, such as negative working capital or shareholder deficits, are present. However, the absence of a profit and loss account limits insight into profitability trends, which is crucial for a full health diagnosis.

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4. Recommendations

To maintain and enhance financial wellness, consider the following actions:

• Enhance Profitability Reporting: Even though exempt from full audit, voluntarily preparing and reviewing profit and loss statements will provide better insight into operational efficiency and profitability trends.
• Cash Flow Management: Continue monitoring cash inflows and outflows carefully, especially given the hospitality sector’s sensitivity to economic cycles and seasonality.
• Growth Strategy: Explore opportunities to increase turnover while maintaining cost control to further strengthen equity and market position.
• Debt Management: Although current liabilities are manageable, regular review of creditor terms and payment schedules will help prevent liquidity stress.
• Financial Forecasting: Develop forward-looking cash flow and budgeting models to anticipate financial needs and growth opportunities.
• Stakeholder Communication: Transparently communicate financial health and growth plans with shareholders and creditors to build confidence.

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