31 Jul 2017 11:38
July 31, 2017
To
The London Stock Exchange
10 Paternoster Square
London
EC4M 7LS
Dear Sirs,
Sub: Outcome of the Board Meeting held on July 28, 2017
Please be informed that the agenda item stated hereunder was discussed and approved at the Board Meeting held on July 28, 2017 at Bangalore:
· Unaudited standalone and consolidated Financial Results of the Company for the quarter ended June 30, 2017.
Further, please take note of the upgrade in the credit rating of the Company.
o Fund based limits: upgraded to 'IND A-/Stable' from 'IND BBB +/Stable'
o Non-Fund based limits: upgraded to Short-term 'IND A2+' from 'IND A2'
Please find enclosed:
· Unaudited consolidated Financial Results of the Company for the quarter ended June 30, 2017.
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 - 560 037
Statement of Unaudited Consolidated Financial Results for the quarter ended June 30, 2017
(Rs. in Lakhs) |
Particulars | Quarter ended | Year ended | |||
June 30, 2017 | March 31, 2017 | June 30, 2016 | March 31, 2017 | ||
Unaudited | Audited (Refer note 11) | Unaudited | Audited | ||
Income | |||||
1 | Revenue from operations | 7,618 | 9,485 | 8,334 | 35,733 |
2 | Other income (Refer note 8) | 59 | 263 | 229 | 1,154 |
3 | Total income (1+2) | 7,677 | 9,748 | 8,563 | 36,887 |
4 | Expenses | ||||
(a) | Employee benefits expense (Refer note 9) | 4,333 | 3,582 | 4,067 | 15,871 |
(b) | Finance costs | 225 | 508 | 558 | 2,040 |
(c) | Depreciation and amortisation expense | 130 | 139 | 112 | 495 |
(d) | Exchange fluctuation loss/ (gain), net | 507 | 647 | (818) | (698) |
(e) | Other expenses | 2,331 | 3,115 | 2,718 | 11,651 |
Total expenses | 7,526 | 7,991 | 6,637 | 29,359 | |
5 | Profit before exceptional items and tax (3-4) | 151 | 1,757 | 1,926 | 7,528 |
6 | Exceptional items, net (Refer note 7) | - | (10,890) | - | (10,890) |
7 | Net profit/ (loss) before tax (5+6) | 151 | (9,133) | 1,926 | (3,362) |
8 | Tax expense, net | ||||
Current tax | 292 | 331 | 108 | 1,055 | |
MAT credit entitlement | (27) | (94) | - | (94) | |
Deferred tax | (13) | - | - | - | |
Total tax expense | 252 | 237 | 108 | 961 | |
9 | Net (loss)/ profit for the period / year (7-8) | (101) | (9,370) | 1,818 | (4,323) |
10 | Other comprehensive income, net of tax | ||||
Items that will be reclassified subsequently to profit or loss: | |||||
Net exchange differences on translation of foreign operations | 284 | 212 | (845) | (1,344) | |
Items that will not be reclassified subsequently to profit or loss: | |||||
Re-measurement (loss)/ gain on defined benefit plans | (8) | 63 | (1) | (32) | |
Total other comprehensive income | 276 | 275 | (846) | (1,376) | |
11 | Total comprehensive income for the period/ year (9+10) | 175 | (9,095) | 972 | (5,699) |
12 | Paid up equity share capital | 56,200 | 50,691 | 50,475 | 50,691 |
[face value of Rs. 10 (March 31, 2017: Rs. 10)] | |||||
13 | Other equity | - | - | - | 17,718 |
14 | Earnings/(loss) per share (of Rs. 10/- each) (not annualised in case of | ||||
the interim periods) | |||||
(a) | - Basic | (0.02) | (1.85) | 0.36 | (0.85) |
(b) | - Diluted | (0.02) | (1.85) | 0.36 | (0.85) |
Notes:
The above results have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on July 28, 2017.
( Rs. in Lakhs) |
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):
Particulars | Quarter ended | Year ended | ||
June 30, 2017 | March 31, 2017 | June 30, 2016 | March 31, 2017 | |
Unaudited | Audited (Refer note 11) | Unaudited | Audited | |
Total income | 7,132 | 8,958 | 7,891 | 33,694 |
Net profit/(loss) before tax | 434 | (3,239) | 646 | (429) |
Net profit/(loss) for the period/ year | 324 | (3,353) | 637 | (683) |
Total comprehensive income for the period/ year | 316 | (3,299) | 636 | (716) |
4 During the quarter ended June 30, 2017, the Company made an allotment of 55,094,999 equity shares of the Company on a preferential basis, at an issue price of Rs. 14 per equity share (Face value of Rs. 10 per equity share) amounting to Rs. 7,713 Lakhs.
5 On June 30, 2017, the Company redeemed outstanding FCCBs III amounting to US$ 3.6 Million (Rs. 2,336 Lakhs) and paid accrued interest of US$ 0.1 Million (Rs. 67 Lakhs) on the aforesaid bonds and there is no outstanding FCCBs as at June 30, 2017. Subsequently, the deferred interest in respect of aforesaid bonds for the period July 6, 2012 to January 6, 2016 amounting to US$ 0.72 Million (Rs. 467 Lakhs) has been paid on July 6, 2017.
During the quarter ended June 30, 2017, the subsidiary of the Company viz. Subex Americas Inc., has repaid the term loan of US$ 12 Million (Rs. 7,782 Lakhs) to the respective lenders on May 15, 2017.
7. Exceptional items:
7[i] As at March 31, 2017, the Company assessed the carrying value of goodwill relating to its investment in the subsidiary viz. Subex Americas Inc., amounting to Rs. 9,736 Lakhs.
Based on future operational plan, projected cash flows and valuation carried out by an external valuer, the Company made an impairment provision of Rs 6,010 Lakhs towards the
carrying value of goodwill relating to its investment in the said subsidiary. The management was of the view that, the carrying value of the goodwill (net of provision) of Rs. 3,726
Lakhs as at March 31, 2017 was appropriate. There is no change in the management's assessment as regards the aforementioned carrying value of goodwill as at June 30, 2017.
7[ii] As at March 31, 2017, the Company assessed the carrying value of goodwill relating to its investment in the subsidiary viz. Subex (UK) Limited amounting to Rs. 67,036 Lakhs.
Based on future operational plan, projected cash flows and valuation carried out by an external valuer, the Company made an impairment provision of Rs. 4,880 Lakhs towards the carrying value of goodwill relating to its investment in the said subsidiary. The management was of the view that, the carrying value of goodwill (net of provision) of Rs. 62,156 Lakhs as at March 31, 2017 was appropriate. There is no change in the management's assessment as regards the aforementioned carrying value of goodwill as at June 30, 2017.
8 Other income for the quarter ended June 30, 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 Rs. 30 Lakhs (Quarter ended March 31, 2017 and June 30, 2016 amounting to Rs. 205 Lakhs and Rs. 205 Lakhs, respectively and that for the year ended March 31, 2017 amounting to Rs. 1,037 Lakhs). Such, write back of withholding taxes has been adjusted with other withholding taxes liabilities of the Company.
9. Employee benefits expenses for the quarters ended June 30, 2017, March 31, 2017 and June 30, 2016 are net of reversal of provision no longer required, in respect of employee incentives relating to sales and delivery commissions, amounting to Rs. 146 lakhs, Rs. 700 Lakhs and Rs. Nil, respectively and that for the year ended March 31, 2017 amounting to Rs. 700 Lakhs.
10 The Group is engaged in the business of software products and related services. 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 The figures of last quarter of previous year is the balancing figure between the audited figures in respect of the full financial year ended March 31, 2017 and the published unaudited year to date figures of nine months ended December 31, 2016.
12. Previous period figures have been regrouped/ reclassified, wherever necessary to confirm to current period's classification.
13. 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.
11
Bengaluru Surjeet Singh
Date: July 28, 2017 Managing Director & CEO
For further details on the results, please visit our website: www.subex com