New Delhi, May 18 (IANS): The business risk environment in India deteriorated in the fourth quarter of FY 2021, according to a Quarterly Risk Transition Report by Rubix Data Sciences.

It noted that the Rubix GST Compliance Score of 2,292 business entities (22 per cent of the total number being monitored) deteriorated between Q3 FY 2021 and Q4 FY 2021.In the prior quarter, only 8 per cent of the business entities had witnessed a drop in their Rubix GST Compliance Score.

"This indicates a deterioration in the risk environment in India in Q4 FY 2021 compared with the prior quarter," it said.

The report was prepared on the basis of 10,193 business entities from more than 35 sectors of the economy.

Further, the Rubix Provident Fund Compliance Score of 29 per cent of the business entities being monitored deteriorated between Q3 FY 2021 and Q4 FY 2021 compared with the prior quarter where only 13 per cent of the business entities witnessed a drop in their Rubix PF Compliance Score.

The deterioration in the Rubix PF Compliance Score of a significantly higher percentage of business entities in Q4 FY 2021 as compared with Q3 FY 2021, underscores the current challenges to the financial health of business entities in India.

The higher degree of non-compliance of business entities with PF filing requirements implies further hardship for employees in the short run, it said.

Further, the external credit ratings of 7 per cent of the business entities deteriorated between Q3 FY 2021 and Q4 FY 2021, compared with only 2 per cent in the prior quarter.

"This raises concerns about corporate risk levels in Q1 FY 22 (April - June 2021) when the impact of the second wave of Covid will play out in the broader economy," it said.