R S Software (India) Ltd.

Mr. R. R. Jain (aged about 61 years), the promoter, is a B.S.C and an MBA in Marketing and Information Systems from University of California. Mr. Jain, a first generation entrepreneur, started his professional career in software consultancy in Los Angeles, USA. Mr. Jain having more than three decades of working experience in software & elec tronic payment services industry is at the helm of affairs of the company. 1 Complete definitions of the ratings assigned are available at www.careratings.co

The Company has launched RBI backed digital payment platform called Unified Payment Interface (UPI) partnered with National Payment Corporation of India (NPCI) in order to integrate multiple systems into a ‘uniform nation-wide and standardized business process for all retail payment systems. Furthermore, RSSL has done a launch of the Bharat Bill Payment System (BBPS). The company has also been developing digital payment platform, Payabbhi, through a 75%

The liquidity profile of the company remains satisfactory (though depleting to fund the cash losses), with cash and liquid investment of Rs.25.65 crore (Rs.55.31 crore as on Mar’19) vis-à-vis nil borrowings from Banks/Fis as on Dec. 31, 2019, barring secured bank over drafts. Industry Outlook Indian IT and ITeS industry (including digital payment) is growing at a CAGR of 12.7% marked with the continuous increase in the non-cash transactions coupled with boom in the number of merchants accepting

Indian IT and ITeS industry (including digital payment) is growing at a CAGR of 12.7% marked with the continuous increase in the non-cash transactions coupled with boom in the number of merchants accepting such payments. The global digital payments market is expected to touch ~$10.7 trillion by 2026. Analytical approach: Standalone Applicable Criteria Criteria on assigning Outlook and Credit Watch to Credit Ratings CARE’s Policy on Default Recognition

Applicable Criteria Criteria on assigning Outlook and Credit Watch to Credit Ratings CARE’s Policy on Default Recognition Rating Methodology - Service Sector Companies Financial ratios – Non-Financial Sector About the Company R S Software (India) Ltd. (RSSL) was set up as a private limited company by one Mr R. R. Jain of Kolkata in December, 1987

Total operating income 58.53 62.18 45.29 PBILDT -42.07 -31.69 -18.99 PAT -25.73 -23.88 -21.30 Overall gearing (times) 0.06 0.11 0.14 Interest coverage NM NM NM A: Audited U/A: Unaudited NM: Not Meaningful Status of non-cooperation with previous CRA: Not applicable

The turnover of RSSL though witnessed a marginal improvement to Rs.61.04 crore in FY19 vis -à-vis Rs.57.39 crore in FY18, the company continued to report cash loss in FY19. (Rs.27.59 crore in FY19 as against cash loss of Rs.34.9 crore in FY18). During 9MFY20, RSSL reported turnover of Rs.45.29 crore as against Rs.40.09 crore during 9MFY19. The company continued to incur cash loss in 9MFY20 (Rs.19.27 crore during 9MFY20 as against Rs.27.59 crore during FY19).

Being a service oriented organization employee cost (including sub-contracting expenses) continues to be the major cost for RSSL (accounted for about ~62% of the cost of sales in 9MFY20 vis-à-vis ~64% in FY19). In view of snapping off its ties with Visa Inc. (once its major client) RSSL has adopted various cost rationalization measures to reduce its employee costs. Foreign exchange fluctuation risk The operation of RSSL involves providing software solutions globally (~75% of the revenue is deriv

The operation of RSSL involves providing software solutions globally (~75% of the revenue is derived from export sales) and hence is susceptible to the fluctuations in foreign currencies vis-à-vis Indian Rupee (INR). Dependence on the fortunes of global electronic payment industry RSSL’s revenue is majorly derived from the global electronic payment industry. However, with increasing trend in usage of electronic payment networks across the globe, the possibility of downturn in the sector is minim

RSSL’s revenue is majorly derived from the global electronic payment industry. However, with increasing trend in usage of electronic payment networks across the globe, the possibility of downturn in the sector is minimal in medium term. Key rating strengths Experienced Promoters Mr. R. R. Jain (aged about 61 years), the promoter, is a B.S.C and an MBA in Marketing and Information Systems from University of California. Mr. Jain, a first generation entrepreneur, started his professional career in

Experienced Promoters Mr. R. R. Jain (aged about 61 years), the promoter, is a B.S.C and an MBA in Marketing and Information Systems from University of California. Mr. Jain, a first generation entrepreneur, started his professional career in software consultancy in Los Angeles, USA. Mr. Jain having more than three decades of working experience in software & elec tronic payment services industry is at the helm of affairs of the company.

The Company has launched RBI backed digital payment platform called Unified Payment Interface (UPI) partnered with National Payment Corporation of India (NPCI) in order to integrate multiple systems into a ‘uniform nation-wide and standardized business process for all retail payment systems. Furthermore, RSSL has done a launch of the Bharat Bill Payment System (BBPS). The company has also been developing digital payment platform, Payabbhi, through a 75%