SUBX.L Regulatory News (SUBX)

SUBEX LTD

Registered office: RMZ Ecoworld, Outer Ring Road, Devarabisanahalli, Bangalore - 560 037

Statement of Consolidated Unaudited Results for the Quarter and Six months ended September 30 2013

PART - I

(Rs. In Lakhs except per share data)

CONSOLIDATED

Particulars

3 Months ended

Preceding 3months ended

Corresponding3 months ended

For the half year ended

For the half year ended

Previous Year ended

30/09/2013

30/06/2013

30/09/2012

30/09/2013

30/09/2012

31/03/2013

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

1

Income From Operations

(a)

Net Sales/ Income From Operations

Product & Product related

8,544

7,776

6,969

16,320

14,055

30,734

Services

-

-

835

-

1,947

2,324

Total Income From Operations (Net)

8,544

7,776

7,804

16,320

16,002

33,058

2

Expenses

(a)

Cost of Hardware, Software & Services

285

183

273

468

426

817

(b)

Employee Benefits Expense and Sub-contract charges

4,576

4,392

5,231

8,968

11,573

20,669

(c)

Other Expenditure

1,595

1,683

1,753

3,278

3,522

6,981

(d)

Depreciation and Amortisation Expense

60

66

117

126

243

427

Total Expenses

6,516

6,324

7,374

12,840

15,764

28,894

3

Profit / (Loss) From Operations before Other Income, Finance costs and Exceptional items (1-2)

2,028

1,452

430

3,480

238

4,164

4

Other Income

(a)

Miscellaneous Income

40

7

50

47

74

89

(b)

Exchange Fluctuation Gain/(Loss)-Net

(305)

1,091

(1,148)

786

(565)

(655)

5

Profit / (Loss) From Ordinary activities before Finance costs and Exceptional items (3+4)

1,763

2,550

(668)

4,313

(253)

3,598

6

Finance Costs

1,671

1,652

1,314

3,323

2,123

5,210

7

Profit / (Loss) From Ordinary activities after Finance costs but before Exceptional items (5+6)

92

898

(1,982)

990

(2,376)

(1,612)

8

Exceptional Items (Net Expense) (Refer Note 2)

-

-

3,997

-

3,997

3,997

9

Profit / (Loss) From Ordinary activities before Tax (7+8)

92

898

(5,979)

990

(6,373)

(5,609)

10

(a)

Tax Expense (Net)

(Reversals) / short provision pertaining to earlier years

(112)

-

-

(112)

-

-

Current period

48

157

117

205

232

386

11

Net Profit / (Loss) From Ordinary activities after Tax (9+10)(Refer Note 4 )

156

741

(6,096)

897

(6,605)

(5,995)

12

Paid up Share Capital

- Equity (Face value of Rs. 10/-)

16,664

16,664

15,865

16,664

15,865

16,664

13

Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

-

-

-

-

-

5,836

14

Earnings per share (before extraordinary items) (of Rs. 10/- each) (not annualised in case of the interim periods):

Basic

0.09

0.44

(4.04)

0.54

(5.99)

(4.40)

Diluted

0.09

0.44

(4.04)

0.54

(5.99)

(4.40)

PART - II

A

PARTICULARS OF SHAREHOLDING

1

Aggregate of Public shareholding:*

Number of shares

153,182,840

153,182,840

143,182,791

153,182,840

143,182,791

149,946,715

Percentage of holding (to total shareholding)

91.92%

91.92%

90.25%

91.92%

90.25%

90.65%

2

Promoters and promoter group

Shareholding

a) Pledged/Encumbered

- Number of shares

6,474,044

6,474,044

8,474,044

6,474,044

8,474,044

8,474,044

- Percentage of shares (as a % of the total shareholding of

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

 promoter and promoter group)

 - Percentage of shares (as a% of the total share capital of the

3.89%

3.89%

5.34%

3.89%

5.34%

5.12%

 company)

 b) Non-encumbered

- Number of Shares

-

-

-

-

-

-

- Percentage of shares (as a% of the total shareholding of

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

promoter and promoter group)

- Percentage of shares (as a % of the total share capital of the

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

company)

* Total public shareholding as defined under clause 40A of the listing agreement (excludes underlying shares for GDRs)

Global Depository Reciepts

3 Months ended 30/09/2013

Preceding 3months ended 30/06/2013

Corresponding3 months ended 30/09/2012

For the half year ended 30/09/2013

For the half year ended 30/09/2012

For the Twelve Months ended 31/03/2013

- Number of underlying Equity Shares

6,983,078

6,983,078

6,989,399

6,983,078

6,989,399

6,989,399

- Percentage of Share Holding

4.19%

4.19%

4.41%

4.19%

4.41%

4.23%

Particulars

3 Months ended 30/09/2013

B

INVESTOR COMPLAINTS

Pending at the beginning of the quarter

Nil

Received during the quarter

3

Disposed off during the quarter

3

Remaining unresolved at the end of the quarter

Nil

STATEMENT OF ASSETS AND LIABILITIES

Rs. in Lakhs

Particulars

As At

30/09/2013

As At

31/03/2013

Audited

Audited

A

EQUITY AND LIABILITIES

1

Shareholders' Funds

(a)

Share capital

16,664

16,664

(b)

Reserves and Surplus

(2,004)

5,836

Sub-total - Shareholders' funds

14,660

22,500

2

Non-current Liabilities

(a)

Long-term Borrowings

62,302

53,769

(b)

Deferred Tax Liabilities(net)

-

-

(b)

Other Long-term Liabilities

4,046

518

(c)

Long-term Provisions

513

554

Sub-total - Non-current liabilities

66,861

54,841

3

Current Liabilities

(a)

Short-term Borrowings

18,437

19,388

(b)

Trade Payables - Other than acceptances

5,540

4,892

(c)

Other Current Liabilities

4,819

6,829

(d)

Short-term Provisions

519

348

Sub-total - Current liabilities

29,315

31,457

TOTAL - EQUITY AND LIABILITIES (1+2+3)

  110,836

  108,798

B

ASSETS

1

Non-current Assets

(a)

Fixed Assets

383

467

(b)

Goodwill on Consolidation

85,642

85,642

(c)

Deferred tax assets (net)

143

141

(d)

Long-term Loans & Advances

2,300

2,646

(e)

Other Non-current Assets

1,406

1,314

Sub-total - Non-current assets

89,874

90,210

2

Current Assets

(a)

Trade Receivables

10,715

7,333

(b)

Cash and Bank Balances

3,959

5,083

(c)

Short-term Loans & Advances

1,157

998

(d)

Other Current Assets

5,131

5,174

Sub-total - Current assets

20,962

18,588

 TOTAL - ASSETS (1+2)

110,836

108,798

Notes:

1

The above results have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on October 30, 2013.

2

Exceptional items comprise -

Rs in Lakhs

Particulars

3 Months ended 30/09/2013

Preceding 3months ended 30/06/2013

Corresponding3 months ended 30/09/2012

For the half year ended 30/09/2013

For the half year ended 30/09/2012

Previous Year ended 31/03/2013

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

Goodwill Impariment*

-

-

927

-

927

927

Exceptional Provision for Doubtful trade and other receivables**

-

-

3,070

-

3,070

3,070

TOTAL

-

-

3,997

-

3,997

3,997

\* The company had impaired goodwill outstanding in books pertaining to its services business during the period ended March 31, 2013. As an impairment in goodwill is not considered to be regular adjustment in the results, the same has been categorised as an exceptional item.

**During the year ended March 31, 2013, the Company carried out an assessment of its receivables and an amount of Rs. 3,070 lakhs has been provided towards doubtful receivables. Considering that the amount of provision towards doubtful receivables was significant and relevant in understanding the financial performance, it has been disclosed separately under exceptional item.

3

Summary of key standalone financial results is as follows: Rs in Lakhs

Particulars

3 Months ended 30/09/2013

Preceding 3months ended 30/06/2013

Corresponding3 months ended 30/09/2012

For the half year ended 30/09/2013

For the half year ended 30/09/2012

Previous Year ended 31/03/2013

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

Net Sales/ Income from Operations

7,246

6,578

6,160

13,824

11,877

26,556

Profit / (Loss) from ordinary activities before tax

(442)

620

(2,801)

179

(3,664)

(3,457)

Profit / (Loss) from ordinary activities after tax

(14)

540

(2,801)

527

(3,664)

(3,457)

4

As permitted under the Proposal approved by the Hon'ble High Court of Karnataka, which was given effect in the year ended March 31, 2011, the Company transferred certain amounts standing to the credit of Capital Reserve to the Business Restructuring Reserve (BRR) and utilised the same for permitted utilisations as under. Had the Proposal not provided for the above accounting treatment :

(Rs in Lakhs except per share data)

Particulars

3 Months ended 30/09/2013

Preceding 3months ended 30/06/2013

Corresponding3 months ended 30/09/2012

For the half year ended 30/09/2013

For the half year ended 30/09/2012

Previous Year ended 31/03/2013

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

Revenue would have been lower by

-

-

959

-

959

959

Other Expenditure would have been higher by

81

-

-

81

-

-

Expenses termed as Exceptional Items would have been higher /(lower) by

-

-

359

-

359

359

Net (loss) / profit would have been (higher) / lower by

(81)

-

(1,318)

(81)

(1,318)

(1,318)

Earnings / ( Loss) Per Share would have been

 -Basic

0.05

0.44

(4.91)

0.49

(7.18)

(5.35)

 - Diluted

0.05

0.44

(4.91)

0.49

(7.18)

(5.35)

5

The Company had received a demand of service tax of Rs.3608 Lakhs and equivalent amount of penalties under the provisions of the Finance Act, 1994 along with the consequential interest, for the period from April, 2006 to July, 2009 towards service tax payable on import of certain services. The Company had filed an appeal contesting the demand before the Central Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore. During the half year, CESTAT, without expressing any opinion, has remanded the appeal back to the adjudicating authority and dispensed with the requirement of pre-deposit.

6

During the year ended March 31, 2013 , the Company had assessed the carrying value of goodwill arising from its investment in its subsidiary viz. Subex Americas Inc., amounting to Rs.18,606 Lakhs. Based on the management's assessment, there was no impairment of such goodwill taking into account the future operational plans and cash flows as prepared by the management and accordingly, no impairment loss was required to be recognized. The Company anticipates achieving its projections by the year end, and accordingly no provision is considered necessary as at September 30, 2013.

7

The excess of the managerial remuneration paid to the directors over the limits prescribed in Schedule XIII of the Companies Act, 1956 for the financial year ended March 31, 2013 amounting to Rs.124 Lakhs is being treated as monies due from such directors, considered as recoverable and being held by them in trust for and behalf of the Company. The Company is in the process of recovering the same.

8

SEGMENT REPORTING:

(Rs in Lakhs)

Consolidated

3 Months ended

Preceding 3months ended

Corresponding3 months ended

For the half year ended

For the half year ended

Previous Year ended

30/09/2013

30/06/2013

30/09/2012

30/09/2013

30/09/2012

31/03/2013

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

1

Segment Revenue:

(a)

Products & Product related

8,544

7,776

6,969

16,320

14,055

30,734

(b)

Services ( Refer Note 9)

-

-

835

-

1,947

2,324

8,544

7,776

7,804

16,320

16,002

33,058

2

Segment Profit/(Loss) before tax, interest & exceptional Items

(a)

Products & Product related

1,812

2,611

(511)

4,423

(57)

4,203

(b)

Services ( Refer Note 9)

-

(157)

(196)

(605)

1,812

2,611

(668)

4,423

(253)

3,598

Less: Interest (Net)

1,671

1,652

1,314

3,323

2,123

5,210

Less : Other Unallocable expenses

49

61

110

Less : Exceptional items [Net]

(a)

Products & Product related

3,070

3,070

3,070

(b)

Services

927

927

927

Profit Before Taxation

92

898

(5,979)

990

(6,373)

(5,609)

3

Details of Capital Employed

(a) Products & Product related

98,696

98,258

92,180

98,696

92,180

97,200

(b) Services

330

346

(41)

330

(41)

(267)

(c) Unallocated

(84,366)

(81,277)

(68,068)

(84,366)

(68,068)

(74,434)

9

The Service line business has been discontinued with effect from 01.04.2013.

10

Previous period / year figures have been re-grouped and/or re-arranged to conform with the current period.

11

Pursuant to clause 41 of the Listing Agreement, 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.

Certain statements in this release concerning our performance may be forward looking statements which involve risks and uncertainties that could cause actual results to vary materially from those in such statements. These risks and uncertainties include, and are not limited to, fluctuations in earnings, intense competition and success of investments.

By Order of the Board 

Mumbai

Date: 30th October, 2013

Surjeet Singh

Managing Director & CEO

For further details on the results, please visit our website: www.subex.com