Rubix Data Sciences Pvt Ltd (Rubix), a technology and analytics-based B2B Risk Management and Monitoring platform, released its Quarterly Risk Transition Report covering changes in risk from Q4 FY 2021 (January – March 2021) to Q1 FY 2022  (April  – June 2021).   At the end of each quarter of the Indian financial year (April – March), Rubix compares the data of how Indian business entities in its monitoring portfolio have performed versus the prior quarter, from a statutory compliance and credit rating perspective.

The key parameters being monitored each quarter are GST Filings, Provident Fund Filings and Credit Ratings.  Rubix latest quarterly risk report indicates a deterioration in all three risk parameters.

The purpose of the Quarterly Risk Transition Report is to see if the business entities being monitored show any deterioration or improvement from a statutory compliance or external credit rating perspective as compared with the prior quarter.  There could be several reasons for non-compliance with statutory requirements for paying of GST and Provident Fund and filing the Returns.  Of these, cash flow delays or liquidity problems that business entities face are probably the most important drivers for non-compliance.  Similarly, changes in Credit Ratings need to be examined closely in order to understand the reasons behind the change.

A deterioration in any of the above parameters for the business entities should raise red-flags and serve as early warning signals for those monitoring the portfolio. Here are highlight of Rubix’s assessment:

  • As per the report, the Rubix GST Compliance Score of 3,177 business entities (32% of the total number being monitored) deteriorated between Q4 FY 2021 and Q1 FY 2022. In the prior quarter, 22% of the business entities had witnessed a drop in their Rubix GST Compliance Score.
  • This clearly indicates that the financial health of nearly one-third of business entities being monitored continued to deteriorate in Q1 FY 2022, suggesting higher risk levels in the quarter.
  • The Rubix PF Compliance Score of 40% of the business entities being monitored deteriorated between Q4 FY 2021 and Q1 FY 2022 compared with the prior quarter where only 29% of the business entities witnessed a drop in their Rubix PF Compliance Score.
  • The percentage of business entities (40%) that witnessed a deterioration in their Rubix PF Compliance Score in Q1 FY 2022 is second only to percentage of business entities (55%) whose PF Compliance Score deteriorated in Q1 FY 2021, at the height of the first wave of the pandemic.
  • The high degree of non-compliance of business entities with PF filing requirements during Q1 FY 2022 (when the second wave of the pandemic was sweeping the country) continues to be a matter of significant concern.

Kaushal Sampat, Founder of Rubix Data Sciences said, “The Rubix Quarterly Risk Transition Report for Q1 FY 2022 indicates a worsening risk environment due to restrictions imposed by various states to combat the second wave of Covid. This is in line with the forecast in our       Q4 FY 2021 Quarterly Risk Transition report. We expect to see an improvement in the risk environment in Q2 FY 2022 (July – September 2021) led by the easing of Covid restrictions and prospects of a good monsoon.”

To download the full report, please click on this link:  Rubix Quarterly Risk Transition Report – Q1 FY 2022           

About Rubix Data Sciences 

Rubix Data Sciences Pvt. Ltd. helps you 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 awarded the Certificate of Recognition at the IMC Digital Technology Awards 2020 in the category: Most Promising Start-Up IT Company in Enabling Digital Transformation.

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 120+ sources, customized predictive analytics and proprietary technology. Through its solutions, Rubix provides deep insights to Credit, Risk, Supply Chain and  Compliance professionals in 250+ Banks, Credit Insurance Companies, Fintechs and Corporates, facilitating quicker and more effective decision-making.