REG - Subex Limited - Subex Limited Outcome -Board Meeting -May 13, 2019

SubexAnnouncement

14/05/2019 09:55

RNS Number : 9588Y
Subex Limited
14 May 2019
 


 
 
May 14, 2019
 
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 13, 2019
 
Please be informed that the agenda items summarized hereunder were discussed and approved at the Board Meeting held today at Bangalore:
 
·   Approval of the audited standalone and consolidated Financial Results of the Company for the quarter and year ended March 31, 2019.
·   Approval of the audited standalone and consolidated Financial Statements of the Company for the year ended March 31, 2019.
·   Appointment of Mr. George Zacharias as an Additional Independent & Non-Executive Director of the Company with effect from May 13, 2019.
·     Appointment of RSM Astute Consulting Pvt. Ltd as Internal Auditors of the Company for period ending March 31, 2020.
·     Approval of Corporate Guarantee in favour of Axis Bank Ltd, for the Working Capital facility availed by its subsidiary, Subex Assurance LLP, to the extent of Rs. 45 Crores.
 
Please find enclosed:
 
·     The audited consolidated Financial Results of the Company for the quarter and year ended March 31, 2019.
 
We request you to take the aforesaid notification on record.
 
Thanking you                                                   
Yours truly,
For Subex Limited
 
Vinod Kumar Padmanabhan
Managing Director & CEO
DIN:06563872






 


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, 2019


( ` in Lakhs)




 


Particulars


Quarter ended


Year ended




March 31, 2019


December 31, 2018


March 31, 2018


March 31, 2019


March 31, 2018




Audited


Unaudited


Audited


Audited


Audited




 


 


(Refer note 13)


 


(Refer note 13)


 


 




 


Income


 


 


 


 


 




1


Revenue from operations


10,187


8,228


8,065


34,812


32,432




2


Other income


40


27


37


101


140




3


Total income (1+2)


10,227


8,255


8,102


34,913


32,572




4


Expenses


 


 


 


 


 




(a)


Employee benefits expense (Refer note 5)


4,875


4,872


4,219


19,105


17,471




(b)


Finance costs


54


54


58


216


775




(c)


Depreciation and amortisation expense


138


116


103


483


517




(d)


Exchange fluctuation (gain)/ loss, net


512


128


447


(171)


1,650




(e)


Other expenses


2,618


2,599


2,580


10,572


9,884




 


Total expenses


8,197


7,769


7,407


30,205


30,297




 


 


 


 


 


 


 




5


Profit before exceptional items and tax expense (3-4)


2,030


486


695


4,708


2,275




6


Exceptional items (Refer note 6)


-


-


1,166


-


1,166




7


Net profit before tax expense (5+6)


2,030


486


1,861


4,708


3,441




8


Tax expense, net


 


 


 


 


 




 


Current tax charge/ (credit)


98


68


(127)


274


(171)




 


Provision/ (reversal) - foreign withholding taxes (Refer note 8)


240


227


244


885


789




 


MAT charge


-


-


-


-


53




 


Deferred tax charge/ (credit) (Refer note 9)


402


(15)


240


1,027


702




 


Total tax expense


740


280


357


2,186


1,373




 


 


 


 


 


 


 




9


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


1,290


206


1,504


2,522


2,068




10


Other comprehensive income, net of tax expense


 


 


 


 


 




 


Items that will be reclassified subsequently to profit or loss:


 


 


 


 


 




 


Net exchange differences gain/ (loss) on translation of foreign operations


118


(298)


(786)


(390)


(210)




 


Items that will not be reclassified subsequently to profit or loss:


 


 


 


 


 




 


Re-measurement gain/ (loss) on defined benefits plan


6


(15)


(25)


(38)


(30)




 


T otal other comprehensive income


124


(313)


(811)


(428)


(240)




 


 


 


 


 


 


 




11


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


1,414


(107)


693


2,094


1,828




12


Paid up equity share capital


56,200


56,200


56,200


56,200


56,200




 


[face value of `10 (March 31, 2018: ` 10)]


 


 


 


 


 




13


Other equity


-


-


-


23,210


21,745




14


Earnings per share (of  `10/- each) (not annualised in case of the interim


 


 


 


 


 




 


periods)


 


 


 


 


 




(a)


- Basic


0.23


0.04


0.27


0.45


0.37




(b)


- Diluted


0.23


0.04


0.27


0.45


0.37




 
 




 


 


As at




 


Particulars


March 31, 2019


March 31, 2018




 


 


Audited


Audited




A


ASSETS


 


 




 


Non-current assets


 


 




 


Property, plant and equipment


540


656




 


Goodwin on consolidation


65,882


65,882




 


Other intangible assets
Financial assets


7


63




 


Loans


503


439




 


Other balances with banks


420


75




 


Other financial assets


234


234




 


Income tax asset (net)


3,039


2,810




 


Deferred tax asset (including MAT credit entitlement)


624


552




 


Other non-current assets


478


537




 


 


71,727


71,248




 


Current assets


 


 




 


Financial assets


 


 




 


Loans


121


134




 


Trade receivables


8,539


9,290




 


Cash and cash equivalents


3,947


3,007




 


Other balances with banks


252


295




 


Other financial assets


4,537


5,250




 


Other current assets


526


544




 


 


17,922


18,520




 


 


 


 




 


Total Assets


89,649


89,768




B


EQUITY AND LIABILITIES


 


 




 


Equity


 


 




 


Equity share capital


56,200


56,200




 


Other equity


23,210


21,745




 


T otal equity


79,410


77,945




 


Liabilities


 


 




 


Non-current liabilities


 


 




 


Provisions


305


280




 


Deferred tax liabilities(net)


1,928


826




 


 


2,233


1,106




 


Current liabilities


 


 




 


Financial liabilities


 


 




 


Borrowings
Trade payable


-


3,215




 


- total outstanding dues of micro enterprises and small enterprises


                          7


-




 


- total outstanding dues of creditors other than micro enterprises and small enterprises


827


1,331




 


Other financial liabilities


2,961


1,511




 


Other current liabilities


2,452


3,230




 


Provisions


729


712




 


Income tax liabilities (net)


1,030


718




 


 


8,006


10,717




 


 


 


 




 


Total liabilities


10,239


11,823




 


 


 


 




 


Total equity and liabilities


89,649


89,768




 
 
 


1    The above results have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on May 13, 2019.
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 and SEBI Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016.
3    The financial results of Subex Limited (Standalone information):





( ` in Lakhs)





 




 


 


Quarter ended


 


Year ended




Particulars


March 31, 2019


December 31, 2018


March 31, 2018


March 31, 2019


March 31, 2018




 


Audited


Unaudited


Audited


Audited


Audited




 


(Refer note 13)


 


(Refer note 13)


 


 




Total income


1,013


297


629


2,091


18,694




Net (loss)/ profit before tax expense


(148)


(801)


(189)


(2,455)


189




Net (loss)/ profit for the period/ year


(145)


(801)


(182)


(2,453)


32




Total comprehensive income for the period/ year


(141)


(803)


(17)


(2,456)


24







 
 
4     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.
5     Employee benefits expenses for the quarters ended March 31, 2019, December 31, 2018, and March 31, 2018 are net of reversal of provision no longer required, in respect of employee incentives relating to sales and delivery commissions, amounting to `5 Lakhs, Nil and ` 342 Lakhs, respectively, and that for the year ended March 31, 2019 and March 31, 2018 amounting to `40 Lakhs and `725 Lakhs, respectively.
6     Represents foreign currency translation reserve gain recognised on account of liquidation of foreign subsidiary.
7     As at March 31, 2019, 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, 2019 is appropriate.
8     Represents provision in respect of withholding taxes deducted/ deductible by the overseas customers of the Group.
9     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.
11 Ind AS 115 Revenue from Contracts with Customers, mandatory for reporting periods beginning on or after April 1, 2018, replaces existing revenue recognition requirements. Under the modified retrospective approach there were no significant adjustments required to the retained earnings at April 1, 2018. Also, the application of Ind AS 115 did not have any significant impact on recognition and measurement of revenue and related items in the financial results.
The Board of Directors and the shareholders of the Company in their respective meetings held on July 31, 2018 approved "Subex Employees Stock Option Scheme - 2018" (hereinafter referred to as the "ESOP Scheme 2018") in accordance with all the applicable provisions of the Companies Act, 2013 and the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 ("SEBI ESOP Regulations") to be administered through Subex Employee Welfare and ESOP Benefit Trust (hereinafter referred to as the "ESOP Trust"). The ESOP Trust was registered as per provisions of Indian Trust Act, 1882 on September 6, 2018 and is authorised to acquire shares of the Company through secondary market for providing such share-based payments to its employees. The ESOP Trust is consolidated in the standalone financial results of the Company and the shares reacquired and held by ESOP Trust are treated as treasury shares and recognised at cost and deducted from other equity. The Nomination and Remuneration Committee of the Company in their meeting held on January 29, 2019 granted 10,650,000 options effective from February 05, 2019 to the eligible employees.
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.
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.
Vinod Kumar Padmanabhan Managing Director & CEO




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