RPSG Ventures Limited — financial distress indicators
Financial-health summary
RPSG Ventures Limited's reported numbers place it in the 'Weak' financial-health band (distress score 58/100). The main indicators are severe working-capital shortfall, losses in each of the last 3 years and very high leverage. Independently, the Ohlson accounting model puts its 1-year failure probability at 84% and the market-implied (Merton) default probability is 10.2%. In its favour: operating cash flow is positive over the latest 12 months.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Current ratio is 0.59 (current assets cover 59% of near-term obligations).
Cash-flow insolvency test: inability to pay debts as they fall due is the trigger for both U.S. involuntary petitions and Indian IBC default.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Total debt is 6.2× EBITDA.
Debt above ~6× EBITDA is deep sub-investment-grade territory; refinancing becomes difficult when rates or earnings move against the company.
O-score 1.68 → model probability 84%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Merton distance-to-default 1.27 σ → PD 10.2%.
Investment-grade issuers typically have 1-year PD well below 1%.
Short-term debt is 4.6× cash on hand.
Maturity wall: debt due within a year must be refinanced, which is the most common proximate cause of filings.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- Revenue still growing (+18% YoY).
- High insider/promoter ownership (72%) aligns management with survival.
📰 Recent news scan
⚖️ Indian legal pathway — the IBC, 2016
How insolvency starts
- A financial creditor (§7), an operational creditor after a demand notice (§§8–9) or the company itself (§10) can apply to the NCLT once a default of at least ₹1 crore occurs (§4).
- On admission a moratorium (§14) stops suits and recovery; the board is suspended and an insolvency professional runs the company.
- The Committee of Creditors approves a resolution plan with 66% of voting share (§30(4)) within an outer limit of 330 days (§12); otherwise liquidation (§33) under the §53 waterfall — equity ranks last. Defaulting promoters are generally barred from bidding (§29A).
Earlier warning stages
- RBI's Prudential Framework for Resolution of Stressed Assets (7 June 2019): lenders must review a borrower within 30 days of default and implement a resolution plan, or provide more.
- Listed companies must disclose loan defaults to exchanges under SEBI (LODR); a rating downgrade to “D” is a public signal.
- Auditors must report going-concern uncertainty (SA 570 / Ind AS 1).
Frequently asked questions
What do RPSG Ventures Limited's financial-health indicators show?
As of 2026-10-09, RPSG Ventures Limited's public financial data places it in the 'Weak' band with a distress score of 58/100, driven by severe working-capital shortfall, losses in each of the last 3 years and very high leverage. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is RPSG Ventures Limited's financial distress score?
58/100 ('Weak'). Ohlson O-score 1.68 (model 1-year failure probability 84%). Merton distance-to-default 1.27 σ (model default probability 10.2%).
What works in RPSG Ventures Limited's favour?
Operating cash flow is positive over the latest 12 months. Revenue still growing (+18% YoY). High insider/promoter ownership (72%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
Under the IBC the Committee of Creditors controls the resolution; the §53 waterfall pays secured creditors and workers first and equity last. In most resolution plans existing shareholders are wiped out or left with a token stake, and the company may be delisted.
Other IT & Software companies with distress indicators
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- GSS Infotech Limited (GSS)Very weak 72/100
- Suvidhaa Infoserve Limited (SUVIDHAA)Very weak 72/100
- Handson Global Management (HGM) Limited (HGM)Weak 58/100
- Xelpmoc Design and Tech Limited (XELPMOC)Weak 57/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.