Annual audited results

SUBEX LTD

Registered office: Adarsh Tech Park, Outer Ring Road, Devarabisanahalli, Bangalore - 560 037

Audited Financial Results for the year ended March 31, 2011 - CONSOLIDATED

 (Rs. In Millions except per share data)

CONSOLIDATED

For the year Ended

31st March

2011

2010

Audited

Audited

Sales - Product & Product related

4,181.18

3,829.43

- Services

646.32

801.35

Net Sales

4,827.50

4,630.78

Other Operating Income

98.42

117.03

Income from Operations

4,925.92

4,747.81

Expenditure

- Cost of Hardware, Software & Services

79.66

118.06

- Personnel Cost

2,615.24

2,968.34

- Other Expenditure

819.85

714.18

- Total

3,514.75

3,800.58

Profit / (Loss) before Interest, Taxes, Depreciation & amortisation and Exceptional items

1,411.17

947.23

- Depreciation and amortization

104.50

163.58

Profit / (Loss) from Operations before Other Income, Interest, Taxes and Exceptional items

1,306.67

783.65

- Interest (Net)

424.21

474.16

Profit / (Loss) after Interest before Exceptional items & Tax

882.46

309.49

 Exceptional Items (Net)

(50.48)

794.72

Profit / (Loss) Before Tax

831.98

1,104.21

Taxes

44.19

101.25

Net Profit / (Loss) for the year

787.79

1,002.96

Paid up Share Capital

693.10

579.83

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

Earnings per share - Basic - (Rs. Per share)

12.47

25.87

Earnings per share - Diluted - (Rs. Per share)

8.62

3.34

Aggregate of Public shareholding:*

Number of shares

52,016,189

40,674,038

Percentage of holding (to total shareholding)

75.05%

70.15%

Promoters and promoter group

Shareholding

a) Pledged/Encumbered

- Number of shares

6,601,801

4,101,801

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

81.49%

50.63%

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

9.53%

7.07%

 b) Non-encumbered

- Number of Shares

1,500,000

4,000,000

- Percentage of shares (as a% of the total shareholding of promoter and promoter group)

18.51%

49.37%

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

2.16%

6.90%

* Total public shareholding as defined under clause 40A of the listing agreement (excludes shares held by founders and GDR holders)

SEGMENTAL REPORTING:

Consolidated

For the year Ended

31st March

2011

2010

Audited

Audited

1. Segmental Revenue:

a. Products & Product related

4,181.18

3,829.43

b. Services

646.32

801.35

4,827.50

4,630.78

2. Segmental Profit/(Loss) before tax, interest & exceptional Items

a. Products & Product related

1,296.29

780.20

b. Services

10.38

3.45

1,306.67

783.65

Less: Interest (Net)

424.21

474.16

Add / (Less) : Other Unallocable Income/(Expenditure)&Exceptional items [Net]

(50.48)

794.72

Profit Before Taxation

831.98

1,104.21

3. Details of Capital Employed

a. Products & Product related

Segment Assets

10,353.30

11,551.37

Segment Liabilities

1,779.80

2,019.23

b. Services

Segment Assets

155.51

346.61

Segment Liabilities

36.22

46.71

STATEMENT OF ASSETS AND LIABILITIES

Particulars

As at 31st March

2011

2010

Audited

Audited

SHAREHOLDERS FUND:

2,094.21

2,875.41

(a) Capital

693.10

579.83

(b) Employee Stock Option Outstanding

63.18

57.12

(c) Reserves and Surplus

1,337.93

2,238.46

LOAN FUNDS

5,457.12

6,341.55

DEFERRED TAX LIABILITY

0.89

1.00

TOTAL

7,552.22

9,217.96

FIXED ASSETS

130.38

195.75

GOODWILL

8,656.89

10,366.36

DEFERRED TAX ASSET

12.18

12.18

CURRENT ASSETS, LOANS AND ADVANCES

1,941.25

1,528.62

(a) Sundry Debtors

605.42

479.21

(b) Cash and Bank balances

41.07

72.39

(c) Other current assets

817.17

438.07

(d) Loans and Advances

477.59

538.95

Less: Current Liabilities and Provisions

3,188.48

3,030.36

(a) Liabilities

1,344.58

1,334.49

(b) Provisions

1,843.90

1,695.87

MISCELLANEOUS EXPENDITURE (NOT WRITTEN OFF OR ADJUSTED)

-

-

PROFIT AND LOSS ACCOUNT

-

145.41

TOTAL

7,552.22

9,217.96

Notes :

1. The above results were taken on record and approved by the Board of Directors in their meeting held on 27th April 2011. 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.subexworld.com.

2. The corresponding previous year figures have been re-grouped and/or re-arranged to conform with the current year.

3. Exceptional items comprise exchange differences arising on (a) restatement of Foreign Currency Convertible Bonds (b) restatement/settlement of intra group foreign currency loans and advances and (c) Managerial Remuneration of earlier years charged off on approval.

4. During the year ended March 31, 2011, the company has granted 715,000 options under its ESOP 2008 scheme and 232,800 options under its ESOP 2005 scheme.

5. Information on Investor complaints pursuant to Clause 41 of the Listing Agreement for the year ended March 31, 2011 :

Opening Balance - Nil, Received - 2, Attended - 2, Closing Balance - Nil

6. Summary of Key Standalone Financial results is as follows -

Particulars

Year Ended

31st March

2011

2010

Audited

Audited

Turnover

3,135.53

3,201.44

Profit Before Tax

725.71

1,380.80

Profit After Tax

715.09

1,368.61

7. During the quarter ending March 31, 2010, the shareholders of the Company had approved a Proposal for creation of a Business Restructuring Reserve and utilisation of the same for certain permitted utilisations with effect from April 1, 2009. The Proposal was since approved by the Hon'ble High court of Karnataka.

As permitted under the Proposal, the company has transferred amounts standing to the credit of Securities Premium and Capital Reserve to the tune of Rs. 1,740 Million (Previous Year Rs 6,700 Million) to the BRR and utilised the same for permitted utilisations to the extent of Rs. 1,830.37 Million (Previous Year Rs 6,499.79 Million). Had the Proposal not provided for the above accounting treatment :

- Other Expenditure and the loss under Exceptional Items would have been higher by Rs. 100 Million (Previous Year Rs. Nil) and Rs 1,730.37 Million (Previous Year Rs. 4,916.30 Million) respectively;

- Net Profit for the year would have been lower by Rs. 1,830.37 Million (Previous Year Rs. 4,916.30 Million); and

- Basic and Diluted (Loss) per share for the year would have been Rs. (16.50) (Previous Year : Rs. (100.93)).

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

Bangalore

27th April, 2011

Subash Menon

Founder Chairman, Managing Director & CEO

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