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Risk Environment In India Shows Significant Improvement In Q4FY22: Report

The key parameters being monitored each quarter are GST Filings, Provident Fund Filings and Credit Ratings

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Rubix Data Sciences (Rubix), a technology and analytics-based B2B Risk Management and Monitoring platform, released its quarterly risk transition report covering changes in risk from Q3 FY 2022 to Q4FY 2022.

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.  

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. 

Kaushal Sampat, founder of Rubix Data Sciences said, “The Rubix Quarterly Risk Transition Report for Q4 FY 2022 indicates an improving risk environment in India as the country puts the nightmare of the covid pandemic behind it. While inflationary concerns have grown and the RBI has begun the process of monetary tightening in Q1 FY 2023, the prospect of a normal monsoon is a significant positive for the economy. Indian businesses would do well to be cautious given the volatility in the forex and commodity markets caused by the Russian invasion of Ukraine.”   

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Rubix Data Sciences