REG - Subex Limited - Outcome of Board Meeting dated May 30, 2022
01/06/2022 12:00
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RNS Number : 5839N Subex Limited 01 June 2022
June 01, 2022
To
The London Stock Exchange
10 Paternoster Square
London
EC4M 7LS
Dear Sir/Madam,
Sub: Subex Limited "The Company"-Outcome of the Board Meeting held on May 30,
2022
Please be informed that the agenda items summarized hereunder were discussed
and approved at the Board Meeting held on May 30, 2022 at Bengaluru:
1. Approval of the Audited Consolidated Financial Results of the Company
for the quarter and year ended March 31, 2022.
2. Re-appointment of Ms. Poornima Prabhu (DIN: 06465957) as an Independent
Director of the Company for a period of 5 years with effect from July 28,
2022, subject to the approval of the members at the ensuing Annual General
Meeting.
Please find enclosed:
· The Audited Consolidated Financial Results of the Company for the
quarter and year ended March 31, 2022.
We request you to take on record the aforesaid information.
Thanking you
Yours truly,
For Subex Limited
Sd/-
Vinod Kumar Padmanabhan
Managing Director & CEO
DIN:06563872
SUBEX LIMITED
Registered office: Pritech Park - SEZ, Block-09, 4th Floor, B Wing, Survey No.
51-64/4, Outer ring road, Bellandur Village,Varthur Hobli, Bangalore -560 103
Statement of Consolidated Financial Results for quarter and year ended March
31, 2022
( ₹ in Lakhs)
Quarter ended Year Ended
Particulars March 31, 2022 December 31, 2021 March 31, 2021 March 31, 2022 March 31, 2021
Audited Unaudited Audited Audited Audited
1 Revenue from operations 7,880 8,774 9,616 33,344 37,203
2 Other income 200 69 172 1,037 474
3 Total income (1+2) 8,080 8,843 9,788 34,381 37,677
Expenses
Employee benefits expense (Refer note 4) 5,412 5,488 5,017 21,449 19,720
Finance costs 32 88 45 194 296
Depreciation and amortization expense 248 252 223 988 1,378
Other expenses 2,367 2,483 2,284 8,381 7,633
4 Total expenses 8,059 8,311 7,569 31,012 29,027
5 Profit before exceptional items and tax (3-4) 21 532 2,219 3,369 8,650
Exceptional items
Provision for service tax receivable - - - - (267)
Gain on termination of lease agreement
- - - - 554
6 Total exceptional items - - - - 287
7 Net profit before tax (5+6) 21 532 2,219 3,369 8,937
8 Tax expense, net
Current tax (reversal)/ charge
Provision/ (reversal) - foreign withholding taxes (Refer note 5)
Deferred tax charge/ (credit) (including MAT credit entitlement) (Refer note
6)
(165) 160 639 251 696
85 281 (541) 593 399
40 (117) 561 426 2,670
Total tax expense (40) 324 659 1,270 3,765
9 Net profit for the period/ year (7-8) 61 208 1,560 2,099 5,172
10 Other comprehensive income/ (loss) net of tax expense
Items that will be reclassified subsequently to profit or loss:
Net exchange differences gain/ (loss) on translation of foreign operations
Items that will not be reclassified subsequently to profit or loss:
Re-measurement gain/(loss) on defined benefit plan
204 (54) 61 267 636
41 (35) 26 (64) (12)
Total other comprehensive income/ (loss) 245 (89) 87 203 624
11 Total comprehensive income for the period/ year (9+10) 306 119 1,647 2,302 5,796
12 Paid up equity share capital 28,100 28,100 28,100 28,100 28,100
[face value of ₹ 5 (March 31, 2021: ₹ 5)]
13 Other equity - - - 28,267 26,755
14 Earnings per share (of ₹ 5/- each) (not annualised in case of the interim
periods)
- Basic 0.01 0.04 0.29 0.38 0.96
- Diluted 0.01 0.04 0.28 0.38 0.94
SUBEX LIMITED
Registered office: Pritech Park - SEZ, Block-09, 4th Floor, B Wing, Survey No.
51-64/4, Outer ring road, Bellandur Village,Varthur Hobli, Bangalore -560 103
Statement of Consolidated Assets and Liabilities
( in Lakhs)
As at
A
B
Particulars March 31, 2022 March 31, 2021
Audited Audited
ASSETS
Non-current assets
Property, plant and equipment 959 1,177
Right-of-use assets 1,386 1,962
Goodwill on consolidation 34,409 34,409
Other intangible assets 14 -
Financial assets
Other financial assets 447 302
Income tax asset (net) 4,947 3,479
Deferred tax asset (including MAT credit entitlement) 148 125
Other non-current assets 42 -
42,352 41,454
Current assets
Financial assets
Loans 161 220
Investments 1,165 -
Trade receivables 9,681 9,956
Cash and cash equivalents 8,539 14,294
Other balances with banks 2,328 207
Other financial assets 7,003 5,896
Other current assets 779 639
29,656 31,212
Total Assets 72,008 72,666
EQUITY AND LIABILITIES
Equity
Equity share capital 28,100 28,100
Other equity 28,267 26,755
Total equity 56,367 54,855
Liabilities
Non-current liabilities
Financial liabilities
Lease Liabilities 998 1,575
Provisions 304 275
Deferred tax liabilities(net) 6,742 6,289
8,044 8,139
Current liabilities
Financial liabilities
Borrowings - 584
Lease Liabilities 470 420
Trade payable
- total outstanding dues of micro enterprises and small enterprises 276 66
- total outstanding dues of creditors other than micro enterprises and small 1,396 1,245
enterprises
Other financial liabilities 1,491 3,045
Other current liabilities 2,506 2,935
Provisions 830 791
Income tax liabilities (net) 628 586
7,597 9,672
Total liabilities 15,641 17,811
Total equity and liabilities 72,008 72,666
SUBEX LIMITED
Registered office: Pritech Park - SEZ, Block-09, 4th Floor, B Wing, Survey No.
51-64/4, Outer ring road, Bellandur Village,Varthur Hobli, Bangalore -560 103
Consolidated statement of cash flows for the year ended March 31, 2022
( in Lakhs)
Year ended
Particulars March 31, 2022 March 31, 2021
Audited Audited
(A) Operating activities
Profit before tax expense 3,369 8,937
Adjustments to reconcile profit/(loss) before tax expense to net cash flows:
Depreciation of property, plant and equipment and right-of-use assets 987 1,375
Amortization of intangible assets 1 3
Gain on disposal of property, plant and equipment (net) - (4)
Interest income (including fair value changes) (266) (374)
Fair value gain on mutual fund at fair value through profit or loss (7) -
Net gain on sale of investments (15) -
Finance costs (including fair value changes) 194 296
Allowance for expected credit losses 536 (153)
Expense on share based payment 137 148
Gain on termination/modification of lease agreement (12) (554)
Provision for service tax receivable - 267
Waiver of borrowings (PPP Loan and interest) (584) -
Net foreign (gain)/ loss (165) 720
Operating profit before working capital changes 4,175 10,661
Working capital adjustments:
(Increase)/ decrease in loans 76 299
(Increase)/ decrease in trade receivables (27) (63)
(Increase)/ decrease in other financial assets (1,006) (1,010)
(Increase)/ decrease in other assets (185) (43)
Increase/ (decrease) in trade payables 329 (437)
Increase/ (decrease) in other financial liabilities (1,375) 573
Increase/ (decrease) in other current liabilities (551) 514
Increase/ (decrease) in provisions (34) 5
1,402 10,499
Income tax paid (including TDS, net of refund) (2,278) (1,404)
Net cash flows (used in) / from operating activities (876) 9,095
(B) Investing activities
Purchase of property, plant and equipment (540) (862)
Proceeds from sale of property, plant and equipment - 7
Purchase of Investments (9,672) -
Sales of investments 8,529 -
Movement in margin money deposit (net) (2,111) (154)
Purchase of treasury shares by ESOP trust - (22)
Interest received 260 309
Net cash flows used in investing activities (3,534) (722)
(C) Financing activities
Proceeds from exercise of ESOP 440 141
Proceeds from borrowings - 600
Interest paid (178) (271)
Repayment of lease liability (389) (931)
Payment of dividends (1,339) (2,746)
Net cash flows used in financing activities (1,466) (3,207)
(D) Net (decrease)/ increase in cash and cash equivalents (A+B+C) (5,876) 5,166
Net foreign exchange difference on cash and cash equivalents 121 85
Cash and cash equivalents at the beginning of the year 14,294 9,043
(E) Cash and cash equivalents at the end of the year 8,539 14,294
Notes:
1 The above results have been reviewed by the Audit Committee and approved by
the Board of Directors in their meeting held on May 30, 2022.
2 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, as
amended.
3 The financial results of Subex Limited (Standalone information):
Quarter ended Year Ended
Particulars March 31, 2022 December 31, 2021 March 31, 2021 March 31, 2022 March 31, 2021
Audited Unaudited Audited Audited Audited
Total income 1,632 2,080 2,573 6,842 5,510
Net (loss)/ profit before tax (675) (91) 1,186 (448) 2,651
Net (loss)/ profit for the period/ year (675) (91) 1,157 (448) 2,622
Total comprehensive (loss)/ income for the period/ year (653) (99) 1,162 (451) 2,622
4 Employee benefits expenses for the quarter ended March 31, 2022, December 31,
2021 and March 31, 2021 are net of reversal of provision no longer required,
in respect of employee incentives, amounting to ₹ 161 Lakhs, ₹ 184 Lakhs
and ₹ 486 Lakhs, respectively, and that for the year ended March 31, 2022
and March 31, 2021 amounting to ₹ 786 Lakhs and ₹ 333 Lakhs, respectively.
5 Represents reversal/provision in respect of foreign withholding taxes
deducted/ deductible by the overseas customers of the Group. Considering the
expected utilisation of foreign withholding taxes, provision of ₹ 723 Lakhs
made during the earlier quarters, has been reversed during the year ended
March 31, 2021.
6 Deferred tax charge/(credit), comprises of 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 effected from November 1, 2017, wherein, the Company's RMS
business and the Digital business was transferred on going concern basis to
Subex Assurance LLP and Subex Digital LLP respectively. Effective April 1,
2021 considering the favourable order received, no additional liability is
created in respect of aforesaid tax benefits.
7 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.
8 The US Federal government in the wake of COVID 19 pandemic provided support to
business through Paycheck Protection Program (PPP). Subex Inc. obtained a
benefit under this scheme for ₹600 Lakhs during May 2020. During the nine
months period ended December 31, 2021, Subex Inc. obtained complete
waiver of the loan amount from Small Business Administration, United
States government agency and accordingly the loan and interest accrued thereon
was recognised as other income.
9 The Board of Directors of the Company in its meeting held on October 28, 2021
has approved the restructuring of the business, subject to all requisite
approvals, wherein the business carried out by Subex Assurance LLP will be
transferred to Subex Limited on a 'going concern' basis excluding Developed
Technology and Investment in subsidiaries. The aforesaid restructuring is
being carried out to achieve higher operational efficiencies upon integration
and consolidation of business in the listed entity. On February 23, 2022, the
shareholder of the Company approved the aforesaid restructuring through postal
ballot. The aforesaid restructuring is likely to be completed over next few
months.
10 On December 6, 2021, the Group experienced a cybersecurity incident related to
ransomware. The Group could contain the incident in a timely basis and has
also ensured that all traces of the infection are completely cleared from the
network. All affected systems were restored and brought back to normalcy in
the order of priority. The management has assessed the impact of the incident
on the control environment and the financial statement process and conclude
there was no material impact on the financial results. Since then, the Group
has also been focused on implementing significant improvements to its cyber
and data security systems to safeguard from such risks in the future.
Place: Bengaluru
Date: May 30, 2022 Vinod Kumar Padmanabhan Managing Director & CEO
For further details on the results, please visit our website: www.subex.com
(http://www.subex.com/)
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