Rubix Quarterly Risk Transition Report for India from Q4 FY 2020 to Q1 FY 2021 clearly highlights the rapidly escalating risk levels in the Indian economy.
[Please note that India follows a April – March financial year (FY) and hence the quarter April – June 2020 is considered as Q1 FY 2021].
Each quarter, BIIA member Rubix compares the performance of Indian business entities versus the prior quarter from a Statutory Compliance (GST, Provident Fund) and Credit Rating perspective. The objective is to see if the business entities show any deterioration one quarter to the next. Any deterioration could imply Cash Flow problems.
The Rubix Quarterly Risk Transition Report for India from Q4 FY 2020 to Q1 FY 2021 reveals the following:
- GST Compliance: Of the 9,558 business entities monitored by Rubix, a whopping 52% saw a deterioration in their Rubix GST Compliance Risk Score, compared with only 19% in the prior quarter. Only 11% of the business entities recorded an improvement in their GST Compliance Score versus 18% recorded in the prior quarter.
- PF Compliance: Of the 2,016 business entities monitored by Rubix for which data was available for both quarters, 55% saw a deterioration in their Rubix PF Compliance Risk Score, compared with only 21% in the prior quarter. Only 20% of the business entities recorded an improvement in their PF Compliance Score versus 33% recorded in the prior quarter.
- External Credit Ratings: Of the 929 business entities monitored by Rubix for which credit rating data was available for both quarters, only 3% witnessed a deterioration in the Credit Ratings compared with 12% in the prior quarter. Rubix believes that the full extent of credit rating downgrades is not visible during Q1 FY 2021 due to temporary relaxations announced by Securities & Exchange Board of India (SEBI) and the moratorium permitted by Reserve Bank of India (RBI). Rubix anticipates that the next quarter Q2 FY 2021 will witness more downward pressure on external credit ratings.
- Extent of Risk Deterioration in Monitored Business Entities: Of the 9,558 business entities that were monitored, 54% saw a deterioration in at least one of the three Risk Variables mentioned above, compared with only 20% in the prior quarter. This reflects a significant deterioration in the risk environment over the past quarter.
To read the full report, please click on this link: Rubix Quarterly Risk Transition Report – Q1 FY 2021
About Rubix: Rubix Data Sciences Pvt. Ltd. helps businesses to take prudent credit risks, build a robust supply chain and monitor compliance for your business partners in India and around the world. Set up by highly experienced Risk Professionals who have worked extensively in the credit, legal and supply chain information domains, Rubix has been recognized as part of the ‘Start-up India’ scheme by the Department of Industrial Policy & Promotion (DIPP), Government of India, in 2018.
The Rubix platform and its suite of reports, products and services are based on its extensive database of structured and unstructured data aggregated from over 100+ sources, customized predictive analytics and proprietary technology. Through its solutions, Rubix provides deep insights to Credit, Risk, Supply Chain and compliance professionals, facilitating quicker and more effective decision-making.
Rubix is a member of BIIA