SUBX.L Regulatory News (SUBX)

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 Unaudited Consolidated Financial Results for the quarter ended June 30, 2021

( Rs. in Lakhs)

Quarter ended

Year ended

Particulars

June 30, 2021

March 31, 2021

June 30, 2020

March 31, 2021

Unaudited

Audited

(Refer note 16)

Unaudited

Audited

1

2

Revenue from operations Other income

8,060

671

9,616

172

8,870

96

37,203

474

3

Total income (1+2)

8,731

9,788

8,966

37,677

Expenses

Employee benefits expense (Refer note 4)

5,107

5,017

4,557

19,720

Finance costs

41

45

110

296

Depreciation and amortization expense

242

223

366

1,378

Other expenses

1,333

2,284

1,353

7,633

4

Total expenses

6,723

7,569

6,386

29,027

5

Profit before exceptional items and tax (3-4)

2,008

2,219

2,580

8,650

Exceptional items

Provision for service tax receivable (Refer note 6) Gain on termination of lease agreement (Refer note 7)

-

-

-

-

-

-

(267)

554

6

Total exceptional items

-

-

-

287

7

Net profit before tax (5+6)

2,008

2,219

2,580

8,937

8

Tax expense, net

Current tax charge

Provision/(Reversal) - foreign withholding taxes (Refer note 8) Deferred tax charge (including MAT credit entitlement) (Refer note 9)

92

65

503

639

(541)

561

1

346

717

696

399

2,670

Total tax expense

660

659

1,064

3,765

9

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

1,348

1,560

1,516

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

150

61

(38)

636

(3)

26

(4)

(12)

Total other comprehensive income/ (loss)

147

87

(42)

624

11

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

1,495

1,647

1,474

5,796

12

Paid up equity share capital (Refer note 10)

[face value of Rs 5 each w.e.f September 29, 2020 and Rs. 10 upto September 28, 2020]

28,100

28,100

56,200

28,100

13

Other equity

-

-

-

26,755

14

Earnings per share (of Rs. 5/- each w.e.f September 29, 2020 and Rs. 10 upto September 28, 2020) (not annualised in case of the interim periods) (Refer note 10):

- Basic

- Diluted

0.25

0.24

0.29

0.28

0.28

0.28

0.96

0.94

1

Notes:

The above results have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on August 9, 2021.

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.

The financial results of Subex Limited (Standalone information):

(Rs. in Lakhs)

2

3

Quarter ended

Year ended

Particulars

June 30, 2021

March 31, 2021

June 30, 2020

March 31, 2021

Unaudited

Audited

Unaudited

Audited

(Refer note 16)

Total income

1,700

2,573

1,332

5,510

Net profit before tax expense

269

1,186

900

2,651

Net profit for the period/ year

269

1,157

900

2,622

Total comprehensive income / (loss) for the period/ year

269

1,162

899

2,622

4

Employee benefits expenses for the quarters ended June 30, 2021, March 31, 2021 and June 30, 2020 are net of reversal of provision no longer required, in

respect of employee incentives relating to sales and delivery commissions, amounting to Rs. 786 Lakhs, Rs. 486 Lakhs and Rs. 333 Lakhs, respectively, and that for the year ended March 31, 2021 amounting to Rs. 333 Lakhs.

5

As at March 31, 2021, the Company assessed and concluded the carrying value of it's goodwill along with carrying value of related Cash Generating Units

('CGUs') is appropriate. There is no change in the management's assessment as regards the aforementioned carrying value of it's goodwill along with carrying

value of related CGU as at June 30, 2021.

6

During the previous year ended March 31, 2021, service tax receivable of Rs. 267 lakhs had been provided for considering the uncertainty as regards to its

realisation.

7

Represents gain arising on termination of the lease agreement of existing office premises in India, accounted in accordance with Ind AS 116 - Leases.

8

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 Rs. 723 Lakhs (including provision of Rs. 279 Lakhs as at April 01, 2020) made during the earlier quarters, has been reversed during the previous quarter ended March 31, 2021.

9

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.

10

The Board of Directors in its meeting held on February 07, 2020, approved a scheme of Capital Reduction in accordance with Section 52 of the Companies Act,

2013 and Section 66 of the Companies Act, 2013 read with National Company Law Tribunal ('NCLT') (Procedure for reduction of share capital of Company)

Rules, 2016 and other applicable provisions of the Companies Act, 2013. The Hon'ble NCLT approved the said Scheme vide its order dated September 23, 2020.

Consequently, the Company filed a certified copy of the Order with Registrar of Companies ('ROC') on September 29, 2020 and utilized an amount of Rs. 28,100

Lakhs from paid-up share capital of the Company by reducing the face value of the equity shares from Rs. 10/- to Rs. 5/- each and Rs. 10,301 Lakhs from securities

premium to write-off its accumulated losses of Rs. 38,401 Lakhs.

11

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.

12

The full impact of COVID - 19 still remains uncertain and could be different from the estimates considered while preparing these consolidated financial results.

The Group shall continue to closely monitor any material changes to future economic conditions.

13

The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in

September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the

final rules/interpretation have not yet been issued. The Group will assess the impact of the Code when it comes into effect and will record any related impact in

the period the Code becomes effective.

14

The Board of Directors had recommended a final dividend of Rs. 0.25/-(5%) per equity share on face value of Rs. 5/- each for the financial year 2020-2021. The same was approved by the shareholders in the Annual General Meeting of the Company held on July 9, 2021 and was paid on July 20, 2021.

15

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 Rs. 600 Lakhs during May 2020. During the quarter ended June 30, 2021, Subex Inc. has obtained complete waiver of the loan amount

from Small Business Administration, United States government agency and accordingly the loan and interest accrued thereon has been recognised as other

income.

16

The figures of last quarter of previous year are the balancing figures between the audited figures in respect of the full financial year ended March 31, 2021 and the

published unaudited year to date figures for the nine months ended December 31, 2020.

Place: Bengaluru

Date: August 9, 2021

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

Vinod Kumar Padmanabhan Managing Director & CEO