REG - Subex Limited - Final Results

SubexAnnouncement

04/05/2018 15:05

2018-05-04T14:00:52.552Zreuters.comtag:reuters.com,2018-05-04:newsml_RSD2200Na:13TXT
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RNS Number : 2200N
Subex Limited
04 May 2018
 

 
 
 
 
May 4, 2018
To
The London Stock Exchange
10 Paternoster Square
London
EC4M 7LS
Dear Sirs,
Sub: Subex Limited 'The Company'- Outcome of the Board Meeting held on May 4, 2018
 
Please be informed that the agenda items stated hereunder were discussed and approved at the Board Meeting held today at Bengaluru:
·     Approval of the audited standalone and consolidated Financial Results of the Company for the quarter and year ended March 31, 2018.
·     Approval of the audited standalone and consolidated Financial Statements of the Company for the year ended March 31, 2018.
·     Resignation of Mr. Ashwin Chalapathy, Non-Independent, Non-Executive Director of the Company with effect from May 4, 2018.
 
Please find enclosed:
·     The consolidated Financial Results of the Company for the year ended March 31, 2018.
 
We request you to take the aforesaid notification on record.
Yours faithfully
For and on behalf of Subex Limited
 
 
Arjun Makhecha
Acting Company Secretary
 
 
 
 
 
 
 
 
 




SUBEX LIMITED
Registered office: RMZ Ecoworld, Outer Ring Road, Devarabisanahalli, Bangalore - 560 103
Statement of Audited Consolidated Financial Results for the quarter and year ended March 31, 2018
(  in Lakhs)








Particulars


 Quarter ended 


 Year ended




March 31, 2018


December 31, 2017


March 31, 2017


March 31, 2018


March 31, 2017




Audited


Unaudited


Audited


Audited


Audited




1
2
3
4
(a)
(b)
(c)
(d) (e)
5
6
7
8
9
10
11
12
13
14
(a)
(b)


Income
Revenue from operations
Other income (Refer note 5)


(Refer note 12)






(Refer note 12)












                  8,065
                       37


                        8,643
                             28


                  9,485
                     263


                32,432
                     140


                35,733
                  1,154




Total income (1+2)


                  8,102


                        8,671


                  9,748


                32,572


                36,887




Expenses
Employee benefits expense (Refer note 6)
Finance costs
Depreciation and amortisation expense
Exchange fluctuation loss/ (gain), net
Other expenses


                  4,219                        58                      103                      447
                  2,580


                        4,444                            282                            155
                           324                         2,454


                  3,582
                     508                      139                      647
                  3,115


                17,471
                     775                      517
                  1,650                   9,884


                15,871
                  2,040
                     495
                   (698)
                11,651




Total expenses


                  7,407


                        7,659


                  7,991


                30,297


                29,359






























Profit before exceptional items and tax (3-4)


                     695


                        1,012


                  1,757


                  2,275


                  7,528




Exceptional items, net (Refer note 7)


                  1,166


                                -


              (10,890)


                  1,166


              (10,890)




Net profit/ (loss) before tax (5+6)


                  1,861


                        1,012


                (9,133)


                  3,441


                (3,362)




Tax expense, net
Current tax charge/(credit)
Provision/(reversal) - foreign withholding taxes (Refer note MAT charge / (credit)
Deferred tax charge/ (credit) (Refer note 10)


                   (127)
                     244
                         -
                     240


                             11                            148                              18                            474


                       17                      314
                     (94)
                         -


                   (171)
                     789                        53
                     702


                     243
                     812
                     (94)
                         -




Total tax expense


                     357


                           651


                     237


                  1,373


                     961






























Net profit/ (loss) for the period / year (7-8)


                  1,504


                           361


                (9,370)


                  2,068


                (4,323)




Other comprehensive income, net of tax
Items that will be reclassified subsequently to profit or loss:
Net exchange differences on translation of foreign operations
 Items that will not be reclassified subsequently to profit or loss:
Re-measurement (loss)/ gain on defined benefit plans


                   (786)
                     (25)


                               1
                              (4)


                     212
                       63


                   (210)
                     (30)


                (1,344)
                     (32)




Total other comprehensive income


                   (811)


                              (3)


                     275


                   (240)


                (1,376)






























Total comprehensive income for the period/ year (9+10)


                     693


                           358


                (9,095)


                  1,828


                (5,699)




Paid up equity share capital
[face value of   10 (March 31, 2017: 10)]
Other equity
Earnings/(loss) per share (of    10/- each) (not annualised in case of the interim periods) - Basic
- Diluted


                56,200
                         -
                    0.27
                    0.27


                      56,200
                                -
                          0.06
                          0.06


                50,691
                         -
                  (1.85)
                  (1.85)


                56,200
                21,745
                    0.37
                    0.37


                50,691
                17,718
                  (0.85)
                  (0.85)




 




SUBEX LIMITED
Registered office: RMZ Ecoworld, Outer Ring Road, Devarabisanahalli, Bangalore - 560 103
Statement of Consolidated Assets and Liabilities
(  in Lakhs)




A


Particulars


As at




March 31, 2018


March 31, 2017




Audited


Audited




ASSETS
Non-current assets
Property, plant and equipment


                     656


                     785








Goodwill on consolidation


                65,882


                65,882








Other intangible assets


                       63


                     138








Financial assets
Loans


                     439


                     399








Other balances with banks


                       75


                     258








Other financial assets


                     234


                     234








Income tax asset (net)


                  2,810


                  1,977








Deferred tax asset (including MAT credit entitlement)


                     552


                     478








Other non-current assets
Current assets
Financial assets
Loans


                     537


                     564




                71,248


                70,715




                     134


                     196








Trade receivables


                  9,290


                11,851








Cash and cash equivalents


                  3,007


                  7,386








Other balances with banks


                     295


                     -








Other financial assets


                  5,250


                  4,508




B


Other current assets
Total Assets
EQUITY AND LIABILITIES
Equity
Equity share capital
Other equity


                     544


                  1,013




                18,520


                24,954














                89,768


                95,669




                56,200


                50,691








Total equity
Liabilities
Non-current liabilities Provisions


                21,745


                17,718




                77,945


                68,409




                     280


                     297








Deferred tax liabilities(net)
Current liabilities
Financial liabilities
Borrowings


                     826


                     -




                  1,106


                     297




                  3,215


                  8,590








Trade payable


                  1,331


                  1,805








Other financial liabilities


                  1,511


                11,922








Other current liabilities


                  3,230


                  3,085








Provisions


                     712


                     677








Income tax liabilities (net)
Total liabilities
Total equity and liabilities


                     718


                     884




                10,717


                26,963














                11,823


                27,260














                89,768


                95,669




 








Notes:




1
2
3
4
5
6
 
8
9
10
11
12
13
14


The above results have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on May 4, 2018.
The financial results have been prepared in accordance with the recognition and measurement principles laid down in the applicable Indian Accounting Standards
("Ind AS") prescribed under section 133 of the Companies Act, 2013, read with relevant rules thereunder and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016.
The financial results of Subex Limited (Standalone information):
                                                                                                                                                                                                    (    in Lakhs)




Particulars


 Quarter ended 


 Year ended




 March 31, 2018


 December 31, 2017


 March 31, 2017


 March 31, 2018


 March 31, 2017




 Audited


 Unaudited


 Audited


 Audited


 Audited




Total income
Net profit/(loss) before tax
Net profit/(loss) for the period/ year
Total comprehensive income for the period/ year


(Refer note 12)






(Refer note 12)












                     286
                    (189)
                    (182)
                    (178)


                         2,884
                          (445)
                          (420)
                          (424)


                  8,958
                 (3,239)
                 (3,353)
                 (3,299)


                18,096                      189                        32
                       24


                33,694
                    (429)
                    (683)
                    (716)




The Board of Directors of the Company in its meeting held on August 21, 2017 approved the restructuring of the Company's business by way of transfer of its Revenue Maximization Solutions and related businesses ("RMS business") and the Subex Secure and Analytics solutions and related businesses ("Digital business") to its subsidiaries, Subex Assurance LLP and Subex Digital LLP (together referred to as "LLPs"), respectively, hereinafter referred to as the "Restructuring", subject to shareholders and other requisite approvals, to achieve amongst other aspects, segregation of the Company's business into separate verticals to facilitate greater focus on each business vertical, higher operational efficiencies, and to enhance the Company's ability to enter into business specific partnerships and attract strategic investors at respective business levels, with an overall objective of enhancing shareholder value.
The shareholders of the Company approved the Restructuring by way of special resolution passed through postal ballot on September 23, 2017 and subsequently, the Board of Directors of the Company in its meeting held on October 4, 2017 approved November 1, 2017 to be the effective date of Restructuring.
Accordingly, effective November 1, 2017, the Company's RMS business and the Digital business have been transferred on a going concern basis for a consideration of ₹ 61,564 Lakhs and ₹ 1,869 Lakhs, respectively, in the form of Company's capital contribution in the aforesaid LLPs. Post such Restructuring, the Company continues to directly hold 99.99% share in the capital of, and in the profits and losses of, each of these LLPs and the entire economic interest as well as control and ownership of the RMS Business and Digital Business remains with the Company post such Restructuring.
Other income for the quarters ended March 31, 2018, December 31, 2017, and March 31, 2017, includes write back of withholding taxes paid earlier in respect of interest on FCCBs, which is no longer payable on account of conversion of FCCBs into equity shares of the Company, amounting to ₹ Nil, ₹ Nil and ₹ 205 Lakhs, respectively, that for the year ended March 31, 2018 and March 31, 2017 amounting to ₹ 30 Lakhs and ₹ 1,037 Lakhs, respectively. Such, write back of withholding taxes has been adjusted with other withholding taxes liabilities of the Company.
Employee benefits expenses for the quarters ended March 31, 2018, December 31, 2017 and March 31, 2017 are net of reversal of provision no longer required, in respect of employee incentives relating to sales and delivery commissions, amounting to ₹ 342 Lakhs, ₹ 81 lakhs and ₹ 700 Lakhs, respectively, that for the year ended March 31, 2018 and March 31, 2017 amounting to ₹ 725 Lakhs and  700 Lakhs. respectively.
Exceptional items:
                                                                                                  (    in Lakhs)




Particulars


 Quarter ended 


 Year ended




 March 31, 2018


 December 31, 2017


 March 31, 2017


 March 31, 2018


 March 31, 2017




 Audited


 Unaudited


 Audited


 Audited


 Audited




Loss on impairment of goodwill
Foreign         currency translation          reserve           gain                on                        liquidation  of subsidiary


(Refer note 12)






(Refer note 12)












                         -
                  1,166


                                -
                                -


              (10,890)
                         -


                         -
                  1,166


              (10,890)




Total


                  1,166


                                -


              (10,890)


                  1,166


              (10,890)




As at March 31, 2018, the Group assessed the carrying value of it's goodwill along with carrying value of related Cash Generating Units ('CGUs'), basis the valuation carried out by an external valuer. Basis the aforesaid valuation, the management is of the view that, the carrying value of its goodwill as at March 31, 2018 is appropriate.
Represents provision in respect of withholding taxes deducted/ deductible by the overseas customers of the Group.
Deferred tax charge / (credit), comprises of deferred tax liability arising on account of tax benefits from amortisation of intangible assets of Subex Assurance LLP, net of deferred tax assets arising on account of carry forward losses and other taxable temporary differences, which arose mainly on account of business restructuring as detailed in note 4 above. 
The Group is engaged in the business of software products and related services, which are monitored as a single segment by the Chief Operating Decision Maker, accordingly, these, in the context of Ind AS 108 on Operating Segments Reporting are considered to constitute one segment and hence the Group has not made any additional segment disclosures.
The figures of last quarter of current year and previous year are the balancing figures between the audited figures in respect of the full financial year and the published unaudited year to date figures for the nine months of the respective year.
Previous period figures have been regrouped/ reclassified, wherever necessary to confirm to current period's classification.
Pursuant to Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the Company has opted to publish the consolidated financial results. The standalone financial results, however, are being made available to the Stock Exchanges where the securities of the Company are listed and are also being posted on the Company's website www.subex.com.




Bengaluru                                                                                                                                                                 Vinod Kumar Padmanabhan
Date: May 04, 2018                                                                                                                                                                                                                                   Managing Director & CEO
 For further details on the results, please visit our website: www.subex.com




 



This information is provided by RNS
The company news service from the London Stock Exchange
 
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