Suvidhaa Infoserve Limited — financial distress indicators
Financial-health summary
Suvidhaa Infoserve Limited's reported numbers place it in the 'Very weak' financial-health band (distress score 72/100). The main indicators are cash runway under 12 months, losses in each of the last 3 years and revenue collapse. Independently, the Ohlson accounting model puts its 1-year failure probability at 95% and the market-implied (Merton) default probability is 0.0%. In its favour: cash on hand covers all debt (net-cash balance sheet).
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.
At the current free-cash-flow burn, cash covers ~7 months.
Going-concern standard: management must assess ability to continue for 12 months (Ind AS 1 ¶25–26). Runway below that horizon forces dilution, asset sales or default.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Revenue changed -67% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 2.97 → model probability 95%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Current ratio is 0.79.
Short-term obligations exceed short-term resources — the company relies on rolling over credit.
Operating margin fell from -183% to -306% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- High insider/promoter ownership (59%) aligns management with survival.
📰 Recent news scan
- Suvidhaa Infoserve AGM 2026: Voting Results and Key Decisions - Kalkine IndiaGoogle News · 2026-10-05
- Suvidhaa Infoserve Ltd. Shareholding Pattern – Promoters, FIIs & DIIs - Value ResearchGoogle News · 2026-08-31
- TRANSCOR Stock Price and Chart — NSE:TRANSCOR - TradingViewGoogle News · 2026-08-17
- Suvidhaa Infoserve Q1 Results: Standalone financials approved by board - scanx.tradeGoogle News · 2026-08-15
- Suvidhaa Infoserve Share Price Outlook: Where It Could Be in 3 Years - UnivestGoogle News · 2026-08-03
- Suvidhaa Infoserve Share Price Target 2026: Rs 3.24 Analyst Forecast - UnivestGoogle News · 2026-06-24
⚖️ 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 Suvidhaa Infoserve Limited's financial-health indicators show?
As of 2026-10-09, Suvidhaa Infoserve Limited's public financial data places it in the 'Very weak' band with a distress score of 72/100, driven by cash runway under 12 months, losses in each of the last 3 years and revenue collapse. 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 Suvidhaa Infoserve Limited's financial distress score?
72/100 ('Very weak'). Ohlson O-score 2.97 (model 1-year failure probability 95%). Merton distance-to-default 7.22 σ (model default probability 0.0%).
What works in Suvidhaa Infoserve Limited's favour?
Cash on hand covers all debt (net-cash balance sheet). High insider/promoter ownership (59%) 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
- SecureKloud Technologies Limited (SECURKLOUD)Very weak 83/100
- GSS Infotech Limited (GSS)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.