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 Gain on termination of lease agreement |
- |
- |
- |
- |
(267) |
| | - | - | - | - | 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) | |||
|
A
B | | As at | |
| 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 enterprises | 1,396 | 1,245 | |
| 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 |
|
1 | Notes: 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 Net (loss)/ profit before tax Net (loss)/ profit for the period/ year Total comprehensive (loss)/ income for the period/ year | 1,632 (675) (675) (653) | 2,080 (91) (91) (99) | 2,573 1,186 1,157 1,162 | 6,842 (448) (448) (451) | 5,510 2,651 2,622 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 |
For further details on the results, please visit our website: www.subex.com |
Vinod Kumar Padmanabhan Managing Director & CEO | |||||
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