SecureKloud Technologies Limited — financial distress indicators
Financial-health summary
SecureKloud Technologies Limited's reported numbers place it in the 'Very weak' financial-health band (distress score 83/100). The main indicators are liabilities exceed assets (negative equity), severe working-capital shortfall and losses in each of the last 3 years. Independently, the Ohlson accounting model puts its 1-year failure probability at 100% and the market-implied (Merton) default probability is 17.8%. 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.
Total liabilities are 5.26× total assets.
Balance-sheet insolvency test: debts exceeding the fair value of assets is the statutory definition of net-worth erosion; under the Companies Act 2013 it is a recognised sign of financial sickness.
Current ratio is 0.24 (current assets cover 24% 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.
Revenue changed -63% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
O-score 30.00 → model probability 100%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Merton distance-to-default 0.92 σ → PD 17.8%.
Investment-grade issuers typically have 1-year PD well below 1%.
Short-term debt is 7.3× cash on hand.
Maturity wall: debt due within a year must be refinanced, which is the most common proximate cause of filings.
Revenue declined every year for three years.
Structural, not cyclical, decline.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- High insider/promoter ownership (47%) 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 SecureKloud Technologies Limited's financial-health indicators show?
As of 2026-10-09, SecureKloud Technologies Limited's public financial data places it in the 'Very weak' band with a distress score of 83/100, driven by liabilities exceed assets (negative equity), severe working-capital shortfall and losses in each of the last 3 years. 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 SecureKloud Technologies Limited's financial distress score?
83/100 ('Very weak'). Ohlson O-score 30.0 (model 1-year failure probability 100%). Merton distance-to-default 0.92 σ (model default probability 17.8%).
What works in SecureKloud Technologies Limited's favour?
Operating cash flow is positive over the latest 12 months. High insider/promoter ownership (47%) 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
- Quintegra Solutions Limited (QUINTEGRA)Very weak 95/100
- 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
- RPSG Ventures Limited (RPSGVENT)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.