subex ltd Management discussions

OVERVIEW

Subex Limited ("Subex" or "the Company") has its Equity Shares listed on the National Stock Exchange of India Limited ("NSE") and the BSE Limited ("BSE").

The management of Subex is committed to transparency and disclosure. In keeping with that commitment, we are pleased to disclose hereunder information about the Company, its business, operations, outlook, risks and financial condition.

The financial statements of the Company have been prepared in compliance with the requirements of the Companies Act, 2013 and the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (including amendments thereto). The management of Subex accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that the financial statements reflect the form and substance of transactions in a true and fair manner, and reasonably present the state of affairs and profits/ losses for the year under review.

In addition to the historical information contained herein, the following discussion may include forward looking statements which involve risks and uncertainties, including but not limited to the risks inherent in the Companys growth strategy, dependency on certain clients, dependency on availability of qualified technical personnel and other factors discussed in this report.

COMPANY OVERVIEW

We build industry leading software products and solutions to help businesses create connected experiences in their digital ecosystems. With AI at the core, Subex is now helping Communications Service Providers ("CSP") reimagine a future of providing seamless, intelligent, connected experiences to their customers. Our strength lies in understanding the dynamic needs of the telco market and leveraging emerging technologies like AI, ML, Blockchain, and more, to build scalable solutions to help telcos thrive in a competitive environment. Towards this, we have created state-of-the-art solutions covering the areas of privacy, security, identity, intelligence, and risk mitigation, all of which help CSPs build a robust ecosystem of trust. Our revenue contributing pie consists of licensing, professional services related to installations and configuration activity, annual support contracts and managed services.

Through HyperSense, an AI-first line of offerings, Subex empowers CSPs and enterprise customers to make faster and better decisions by leveraging Artificial Intelligence (AI) across the data value chain.

"The Subex Advantage" comes from our 25+ years of experience in enabling 3/4th of the largest 50 CSPs globally achieve competitive advantage. Being truly a global company, we have more than 300 installations across 90+ countries.

We have a global presence, employing over 1000+ people, with headquarters in Bengaluru, India and offices in Singapore, UK, US, UAE and Bangladesh.

More information on (a) an overview of the telecom industry (b) our products (c) Opportunities and challenges and (d) our revenue model is discussed below.

TELECOMS IN THE GLOBAL MACRO CONTEXT

As of the end of 2022, the global number of mobile service subscribers exceeded 5.4 billion, with approximately 4.4 billion individuals also using mobile internet services. Over the past five years, there has been a significant reduction in the gap between mobile internet users and overall mobile subscribers, declining from 50% in 2017 to 41% in 2022 on average. Nevertheless, despite this progress, the remaining disparity requires immediate attention from all stakeholders.

The mobile industry has become a crucial contributor to the global economy, generating 5% of the global GDP in 2022. This amounted to $5.2 trillion of added economic value and supported approximately 28 million jobs across the broader mobile ecosystem. Looking ahead, the adoption of 5G technology will play a pivotal role in driving future mobile innovation and services. With ongoing deployments and increased adoption, 5G is projected to reach a 17% adoption rate in the current year and is anticipated to rise to 54% by 2030, equivalent to approximately 5.3 billion connections.

By 2030, 5G technology is expected to contribute nearly $1 trillion to the global economy, benefitting various industries. The impact of this technology will be widespread, bringing advantages and advancements to multiple sectors. It is crucial to acknowledge the potential transformative effects of 5G and the opportunities it presents for economic growth and development.

Key trends shaping the mobile ecosystem 5G consumer monetisation comes into focus

In the year 2023, approximately 30 new markets are set to introduce 5G services. It is particularly noteworthy that many of these markets will be in developing regions across Africa and Asia, indicating that the adoption of 5G is becoming a global trend. As the scale of 5G adoption expands, there will be an increasing emphasis on monetization strategies. Mobile operators will concentrate their marketing efforts on highlighting the connection between mobile devices, 5G technology, and new digital services. Additionally, these operators will extend their 5G fixed wireless access (FWA) offerings to reach new areas.

In markets where the predominant fixed broadband technology is DSL (Digital Subscriber Line), there is likely to be a greater growth in 5G FWA penetration. Moreover, markets characterized by low fixed broadband penetration, but rising incomes will also experience faster-than-average growth in terms of 5G adoption.

Private 5G builds momentum

The resurgence of private wireless solutions can be attributed to the advanced capabilities of 5G technology, which have expanded deployment possibilities beyond niche applications. Multiple industries find private wireless networks particularly well-suited for their operations. Additionally, the transport and logistics sector is projected to witness significant growth in private network adoption due to 5Gs enhancements in capacity, latency, and reliability, enabling the facilitation of new use cases within a private wireless environment.

To achieve widespread adoption and scalability of private networks, it is crucial for solutions to become more affordable and easier to install and operate. This demand for cost-effective implementation has led to a rising interest in pre-integrated solutions that come with the necessary supporting infrastructure. By offering streamlined and comprehensive solutions, organizations aim to simplify the deployment process and reduce complexities associated with private wireless networks, ultimately driving their broader adoption.

Mobile industry shifts towards circularity

Sustainability has evolved from being solely a matter of corporate social responsibility to becoming a fundamental strategic priority across the telecoms ecosystem. Industry stakeholders are now embracing a model that emphasizes the sharing, leasing, reusing, repairing, refurbishing, and recycling of existing materials and products as a central aspect of production, service offerings, and consumption. This circular approach is crucial for enabling networks to operate in a more sustainable and energy-efficient manner, while also driving the industry towards achieving its climate objectives. By prioritizing sustainability and adopting circular practices, the telecoms industry can make significant progress towards reducing its environmental impact and achieving its climate-related goals.

The metaverse continues to gain traction

The momentum surrounding the metaverse is steadily increasing, supported by advancements in enabling technologies such as 5G, AI, and wearables. Key stakeholders and players in the ecosystem are displaying a growing interest, resulting in the development of essential foundations for the progression of the metaverse. These building blocks include content and applications, standards, and devices, which will be central to the activities taking place in 2023.

Beyond providing connectivity, the metaverse presents operators with opportunities for new revenue streams. This highlights the importance of innovation and partnerships in identifying use cases and network requirements that align with the metaverse concept. Operators must actively seek out novel approaches and collaborate with various stakeholders to fully harness the potential of the metaverse and capitalize on its emerging possibilities.

Fintech presents opportunities for mobile industry players

Fintech has revolutionized the delivery of financial services to both consumers and businesses, fundamentally transforming the industry. While investor sentiments experienced a significant decline in 2022 following a year of record funding, the underlying drivers of growth, such as robust demand, digitally-centered lifestyles, and supportive regulations, remain strong. The fintech market remains fragmented, but its positive long-term growth prospects increase the likelihood of consolidation and attract interest from established financial institutions and companies in diverse sectors, including mobile ecosystem players. These entities are keen to capitalize on the opportunities presented by fintech through strategic investments, collaborations, and partnerships, recognizing the potential for synergy and mutual benefit.

OUR PORTFOLIO

For over two decades, Subex has held an eminent position as the undisputed market leader in the realm of Risk Management solutions for the telecom industry. Throughout our illustrious journey, we have remained resolute in our pursuit of unrivaled excellence and unwavering commitment to innovation, rendering us an esteemed and trusted name in the domain. Our portfolio stands as a testament to our unwavering dedication, encompassing a comprehensive array of avant-garde solutions tailored to empower telecom operators in crafting seamless and unparalleled connected experiences for their discerning clientele.

In the ever-evolving world of telecommunications, connectivity lies at the heart of all interactions. Subex, a pioneering telecom AI solutions provider, envisions a future where the telecom industry leverages the power of connectivity to revolutionize customer experiences, enhance operational efficiency, and pave the way for unprecedented growth. By focusing on creating connected experiences within the telecom sector, Subex aims to shape a vibrant landscape where communication knows no bounds.

HyperSense

HyperSense is Subexs cutting-edge AI-first line of offerings, revolutionizing the way businesses harness the power of artificial intelligence. With HyperSense, Subex has ingeniously crafted a suite of AI-driven solutions that cater to the evolving needs of organizations across diverse sectors. These offerings not only demonstrate Subexs commitment to staying at the forefront of technological innovation but also serve as a testament to their dedication to empowering businesses with intelligent, data-driven decisions. HyperSense is poised to drive enhanced operational efficiencies, predictive insights, and proactive risk management, making it an indispensable asset for any enterprise seeking to thrive in the era of AI transformation.

Business Assurance

HyperSense Business Assurance system based on Active Risk Intelligence (ARI) provides the most comprehensive AI/ML tooling in the Business Assurance industry from over 25 years of implementation experience. It enables telcos to work on a dynamic risk marketplace and entails collaboration & knowledge management to enhance risk mitigation and improve decision making. The ARI suite enables AI-driven predictive and prescriptive business insights for CxOs (Opco & group) across verticals (Marketing, finance, sales, network, etc.). With a product history spanning over two decades, Subexs Business Assurance is the culmination of the operational experience of being deployed in over 80+ sites globally.

Fraud Management

Built on 25+ years of domain expertise, the HyperSense Fraud Management system is the only AI-first fraud management system for telcos enabling them to effectively combat fraud and security risks by leveraging AI in every step of the fraud management process. With a state-of-the-art AI engine at the core, it helps risk professionals increase business-coverage, accuracy, and precision and enables them to use AI in a sustained manner. With Subexs comprehensive fraud management system, operators can detect more than 350 types of fraud in all telecom environments.

NETWORK ANALYTICS

Enterprise Asset Management

Subexs Enterprise Asset Management provides CSPs with the necessary framework and controls to make the best use of their assets, thereby helping manage network Capex efficiently and maximizing asset ROI. The solution ties the assets financial parameters to its current utilization and location, creates a 360-degree view of the asset, generates accurate reports for audits, and calculates the return on assets. Also, it simplifies field audits, provides near real-time capacity views, recommendations to optimize network utilization and optimizes P2R (Plan-to-retire) and cash-to-cash cycle for assets and improves overall operational efficiency.

Data Integrity Management

Subex is the pioneer of data integrity management, with over a decade of experience in data integrity transformations with the worlds leading service providers. Data Integrity Management is the industrys first solution for improving the quality of data that drives critical service provider processes, resulting in lower costs and higher service profitability.

Partner Ecosystem Management

A platform to manage all aspects of the digital and traditional partnerships that will allow CSPs to accelerate their digital services portfolio expansion.

Partner Lifecycle Management

Subex Partner Lifecycle Management allows CSPs to significantly reduce time to market for new services and enhance existing services by quickly onboarding new partners to the ecosystem. The solution optimizes OPEX through workflow-based onboarding process interfaces with configurable KPIs to allow quick partner onboarding. CSPs can assess partner health by scoring them on different parameters and monitor their performance to ensure a value-driven partner ecosystem. The partner portal empowers partners with complete business visibility through access to dashboards and reports and make informed decisions.

Digital Services Billing

Subex offers a domain - agnostic digital services billing solution that can bill and settle any event irrespective of the source and cater to Data, Content, IoT, M2M, and Utility billing requirements. Utilize configurable modeling capabilities that allow the creation of new revenue streams through configurations, thus allowing quicker settlements and bill roll outs.

Wholesale Billing and Routing

Subexs Wholesale Billing and Routing solution enales you to get a holistic view of your entire range of partner relationships, covering services such as voice, SMS and Data, manage roaming, routing, content settlements, as well as MVNO and other B2B relationships. We drive efficiencies into your businesses via process automation to gain operational insight to support critical decision-making activities and enable you to achieve a competitive advantage. We cover Interconnect Billing & Settlement, Reconciliation and Dispute Management, OBR, Route Optimization, Contract Lifecycle Management.

Enterprise Billing

Subex offers a next-gen end-to-end enterprise billing system that provides unmatched rating and billing capabilities for CSPs. Its a converged billing platform that covers partner onboarding, subscription management, service agnostic rating, and billing to financial reporting.

Roaming Settlements

Subex Roaming solution offers a 360-degree view of the roaming services and revenue management to improve profitability. It reduces the possibility of fraud by removing the likelihood of paying high cost traffic or lose inbound roaming revenue by supporting NRTRDE (Near Real-Time Roaming Data Exchange) and HUR (High Usage Report).

Sectrio

The Sectrio suite of IoT-OT-IT and 5G cybersecurity solutions include:

• IoT-OT-IT Converged Security Suite: a comprehensive cybersecurity offering designed to secure converged environments from cross-stream threats. This includes technology-specific and technology - agnostic threats that can operate across environments to target devices, IT systems, and SCADA and ICS.

• Threat Intelligence: It offers specific threat intelligence that is relevant, actionable, and contextual to various businesses. This leads to reduced false positives, improved SecOps efficiency and improved threat hunting.

• 5G Security: It offers comprehensive protection for 5G linked infrastructure and installations

In addition to the above, there are also modules for vulnerability management, threat management and micro segmentation.

IDcentral (Identity Analytics)

Today, each individual has multiple digital interactions which give rise to something known as a digital footprint. This digital footprint is a combination of various attributes like phone number, email ID, device info, social network data etc. that when put together form the digital identity of that individual. IDcentral specializes in bringing together these different attributes to create verifiable digital identities leveraging alternate sources of data. IDcentral is the next-generation digital identity analytics platform, that helps businesses across various domains to increase their profitability and reduce risk. It is one of the largest repositories of data in the world with access to 200 plus data points of 700 million individuals. IDcentrals wide range of solutions include:

• Onboarding solutions: Enables document-less, presence-less, and secure online customer onboarding for enterprises. This includes solutions like locality verification using telecom CDR data, name/age/gender verification with government and telecom data, low touch verification, and risk prediction of MSISDN and email IDs using telecom and consortium data, AML + PEP + Sanctions lists.

• Credit solutions: Enables credit processing for underserved population and provide early default warning. This includes solutions like income range prediction with telecom data, locality verification with telecom data, alternate data credit scores, and early default vectors using telecom and consortium data.

• Fraud solutions: Enables E-com, M-wallet, Fintechs in preventing various kinds of identity and transactional frauds by using advanced analytics on usage, device, behavioral, network, and telecom data. This includes addressing linked account abuse/ frauds, ATO frauds, CNP frauds, Card present frauds.

It acts as a one-stop shop for identity analytics solutions by harvesting data from multiple sources and adding layers of intelligence to enable the creation of a real-time frictionless digital identity.

Consulting & Advisory Services

Subex with its more than 25 years of experience in telecom domain, end-to-end encounter in defining strategy to execution and use of relevant tools that are compliant with global forums such as TM Forum and CFCA; is the right partner of choice in consulting and assessment services for global telcos.

Subex o_ers consulting and assessment services in the following domains:

Maturity Assessment & Improvement: Benchmarking of their Business Assurance (including Revenue Assurance, Fraud Management and other assurance areas) processes concerning global standards, and providing recommendations across strategies, people skills, processes, technologies, measurement and management reporting practices.

Functional Assessments: Gap analysis of existing RAFM functional processes, technology and provide the roadmap to close these gaps using "analyse, evaluate, assess and recommend" framework.

Risk Advisory & Management: Identify the risks in the revenue chain and plug leakages promptly, through regular assessment of the existing business and revenue streams. Subexs custom framework is based on a thorough understanding of risks, creating a Risk Control Matrix utilizing relevant industry standards and developing comprehensive standard operating procedures.

Business process re-engineering: Review of the existing business processes, design and implementation of new business processes based on industry leading practices.

Transformation & Migration Assurance: Creation of assurance framework across the transformation or migration journey of OSS/ BSS systems. Subex can assist operators in providing the necessary support during the end-to-end migration process to avoid revenue/ cost leakages, negative customer experience, project delays and budget overruns.

Product and Service Margin Assurance: Assessment of the target market, holistic margin and profitability for the entire service and product catalogue.

Accounting Assurance: Formalization of secondary control universe which would be executed by Business Assurance teams to provide the assurance to CFO on the current revenue reporting across all revenue segments. This will also include an independent revenue computation to identify the gaps (if any).

Managed Services

Our Managed Services offerings are designed to drive outcome and protect revenues by enhancing customer experience. Pillared on four main aspects, i.e., Cost, Quality, Time-to-market and Capability, the engagement is aimed to provide rapid ROI, increase efficiency, and in-turn deliver maximum value. Driven by robust technology-led capabilities, Subex Managed Services offers a variety of engagement models providing complete flexibility to operators based on their business needs.

Subex Managed Services program is designed to add both strategic and tactical value to service providers operations and enable better customer experience while also enhancing their operational efficiency, service agility and profitability. With Subex at the helm of its operations, service providers can redirect critical resources at core business functions generating more revenue and saving costs.

Subex understands that no two service provider requirements are alike and hence offers the flexibility to pick and choose services based on:

• Scope of Operations: Ranging from standard operations to large scale transformational programs

• BSS / OSS Domains: Drawing from Subexs established expertise on various BSS / OSS domains

• On-Site Support: High caliber, experienced resources to ensure functional continuity and high resource efficiency.

Creating a resilient telecom landscape by tracking threats and unlocking opportunity

Key Announcements in FY23

HyperSense named in 2022 Gartnerr Market Guide for Multipersona Data Science and Machine Learning Platforms

Subex has been named in 2022 Gartnerr Market Guide for Multipersona Data Science and Machine Learning Platforms (DSML). According to this Market Guide for Multipersona Data Science and Machine Learning Platforms, "Data science and machine learning are evolving rapidly with key trends such as augmentation and democratization. To support the needs of an increasingly diverse group of technical and nontechnical roles, data and analytics leaders should apply multipersona DSML platforms.

Ethio Telecom selects HyperSense Fraud Management

Subex announced that it has been selected by Ethio Telecom to deploy its Fraud Management solution. The solution, which is built on Subexs AI orchestration platform, HyperSense, will replace Ethio Telecoms existing legacy fraud management system, thereby enabling them to move from a traditional rules-based approach to an AI-first approach. This approach will, in-turn, enable them to detect new and unknown threats in real-time.

Unitel selects Subex for protection against telecom fraud

Subex announced that it has been selected by Asian telecommunications and internet major Unitel LLC to help the operator in its fight against fraud and digital crimes. As part of the agreement, Subexs Signaling Security solution will help Unitel leverage signaling data for the early detection and mitigation of all types of fraud, thereby ensuring the prevention of any loss of information or revenue.

Subex announced the showcase of its AI solutions at MWC. Subex showcased its award-winning platform, HyperSense AI, and its capabilities to cover many AI-related use cases. Towards this, Subex demonstrated its HyperSense AI-led solutions to drive growth, protect revenues, enhance profitability, optimize Capex and expand digital service offerings.

REVENUE MODEL

Our revenue generally comes from four streams: (1) licensing; (2) professional services related to installations and configuration activity; (3) annual support contracts; and (4) managed services.

We generally license our software products on per subscriber or per transaction basis. This means that when our customers experience growth, we can also expect to benefit from that growth. Typically, there are significant professional services revenues associated with each new software installation as well as with upgrades.

Our annual support contracts are generally priced as a function of the total license fees paid by the customer. Thus, our annual support contracts would also tend to experience growth when our customers experience growth. Importantly, annual support contract revenue tends to be recurring revenue.

Finally, we have been experiencing increased success with managed service revenue. Like annual support contracts, managed services provides a relatively predictable recurring revenue stream. At the same time, our managed service offering provides us with an opportunity to maintain a continuous touch point with the customer so we can better understand their needs and we have opportunity to educate them on our offerings and skills.

RISKS AND CONCERNS

As our valued investor, we are certain you understand our business environment, prevailing economic conditions, geo-political circumstances, and other specific risks that may affect our future business decisions and financial performance. It is not possible to detail out every risk since we operate in a very competitive and rapidly changing global environment. New risk factors emerge from time to time, the year 2020 was one of our most challenging years in recent times, just as it was for any other business since the global COVID-19 pandemic led to uncertainty and ambiguity across the globe. Similarly, in 2022, the impact of the Ukraine-Russia conflict on businesses has been significant, with decreased economic activity, disrupted supply chains, and increased risk and uncertainty. There could still be dramatic changes in the business. However, due to lack of precedents, we are unable to provide specific details on how this could impact Subexs business. We are providing some information on several risks which we are aware of and they are stated herein: (a) reduction in consumer and business purchasing; (b) consolidation of our customer base; (c) dependence on communications, service providers as our major customers; (d) security; (e) improper disclosure of personal data could result in liability and harm to our reputation; (f) technology changes and obsolescence may impact our business; (g) recruiting and retention of personnel is challenging; (h) adequately protecting our intellectual property may not be possible; (i) allegations of infringement of third-party intellectual property poses risks; (j) variability of our quarterly operating results makes comparisons difficult; (k) non-compliance with statutory obligations may result in fines and penalties; (l) non-compliance with environmental regulations may lead to fines and penalties; (m) foreign exchange fluctuations may lead to variability in our revenue; (n) SEZ related taxation benefits may be uncertain; (o) failure to fulfill contractual obligation may lead to claims; and (p) debt obligations. Below, we will discuss each of these risks in some more detail. There are, of course, additional risks faced by us, which are not specified here.

Reduction in Consumer and Business Purchasing

We depend on our customers – primarily large communications service providers ("CSPs"). If our primary customers face reduced revenue, we will also face reduced revenue. CSPs primary customers are consumers and businesses. Of course, reductions in spending by consumers or businesses will reduce revenue of CSPs and this will result in decreased spending by the CSPs which means reduced revenue for us.

Additionally, the ongoing Ukraine-Russia conflicts has had a significant impact on businesses around the world. The conflict has resulted in a slowdown of global economic activity and has disrupted trade flows and made it difficult for businesses to operate in the affected regions. This geo-political conflict is ongoing and may lead to decreased revenue and profitability.

Consolidation in our customer base

CSPs have gone through considerable consolidation. The consolidation, or merger, of one CSP with another can have several impacts on us. First, it will simply reduce the overall size of the market; each consolidation effectively reduces the number of potential customers for our products. Secondly, it can and does happen that one of our existing customers can undergo a consolidation. In that event, the other party to the consolidation may already have competing products and the combined company may choose to continue with the use of the competing product rather than use our products/services. Of course, it can also happen that the two companies, when combined, choose to use our products which may have a positive impact on our revenue. Another possibility is that two existing customers merge. The consolidation of two customers will have an adverse effect on our revenue as the combined company attempts to reduce their consolidated spending. Finally, larger customers simply have more negotiating power leading to reduced prices for our products. The Company strives to have a deep penetration within the accounts that it serves so as to provide an edge over competitors and be a preferred choice during such consolidations.

Dependence on the Communications Service Providers as our major customers

We mentioned above our customers are primarily CSPs. We are fully dependent on CSPs as our major customer base. As a result, we are fully susceptible to any downturns or negative changes in the CSP industry.

Security

You must be well aware that security threats are prevalent everywhere today. This is, perhaps, especially true in the technology industry where we participate. The security vulnerabilities take many forms. Hackers may attempt to compromise computer systems and networks. Fraudsters may attempt to steal the identity of our personnel to gain access to our computer systems, networks and even banking systems. Terror activity could have an adverse impact on our business. We may fail to adequately design our products leaving our customers exposed to hacking and other network vulnerabilities. Perhaps this concern – of failure to adequately design our products leading to exposure of our customers information is one of the largest concerns. If one of our customers faced a security breach allegedly as a result of use of our products, it would cause significant reputational risk to us and may lead to claims against us.

We devote significant resources to mitigate security threats including threats to our internal IT systems, with respect to our products and with respect to physical security of our buildings. But there cannot be any guarantee that these efforts will avoid security breaches.

Improper disclosure of personal data could result in liability and harm our reputation

You are probably aware of the global trend towards more sensitivity regarding improper disclosure of personal data. This global trend has a number of impact on us. There are additional laws and regulations in many jurisdictions. This not only leads to increased administrative costs of compliance and increased difficulties in doing business but violations of these laws and regulations involve higher and higher fines and penalties. At the same time, we are storing and processing increasingly large amounts of personal data which leads to increased potential exposure.

We take what we consider to be appropriate steps to provide for the security and protection of all data including personal data. But, despite these efforts, it is possible our practices may not prevent the improper disclosure of personal data. Improper disclosure of this information could harm our reputation, lead to legal exposure, lead to claims against us by customers including claims for indemnification or subject us to liability under laws that protect personal data, resulting in increased costs or loss of revenue.

It is important to note that our potential liability for customer financial damages associated with losses of personal data is generally not limited by limitation of liability provisions in customer contracts.

In addition to risks related to improper disclosure of personal data, new laws and regulations are being implemented. One significant new regulation is the European General Data Protection Regulation ("GDPR") which went into full effect in May 2018. Compliance efforts related to these laws and regulations is significant and could be a distraction from other activities. Further, even without any actual improper disclosure of personal data, non-compliance could result in large fines. Still further, customer focus on these laws and regulations could delay or jeopardize sales and installations of Subex products.

Technology changes and obsolescence may impact our business

We experience rapid technological changes which could make our technology and services obsolete, less marketable or less competitive. These changes result in our need to continually improve the features, functionality, reliability and capability of our products which poses development challenges and expenses. We may not be able to adapt to these changes successfully or in a cost-effective way which may adversely affect our ability to compete and retain customers or market share.

While the rapid technological changes require us to change our products, launching new products is also a key element of our growth. An inability to bring new products with high demand to the market in a timely manner will reduce our growth and profitability.

We make strong efforts to put in place processes and methodologies to address these issues and to turn it into a strategic advantage by being in the forefront of technological evolution. For example, regular skill upgradation programs and training sessions that include attending global conferences and employing specialized consultants etc. are undertaken.

Recruiting and Retention of Personnel is challenging

Subexs talent acquisition strategy is to hire candidates with the right competencies required by the business at the right time, a judicious mix of lateral hires and fresh graduates. We are an equal opportunity employer and focus on meritocracy at all stages of hiring, strictly based on role-mapping career architecture.

We have a robust process to source and select the best talent, both for entry-level roles as well as lateral hires, leveraging multiple social media platforms and events, channel partners, referral campaigns, campus placements, and internal job postings. We were successfully able to hire close to 330 Subexians under 100% TAT for vanilla, niche and strategic positions.

Our recruiters had been efficient in the hiring process and have been able to close on the requirements with minimal external/vendor support and quickly adapted to the hybrid workplace environment and executed virtual and in-person hiring processes while facilitating quick closure. The steps have been taken below to improve the quality of hire:

• Training & upskilling the recruitment team

• Streamline recruitment process

• POFU (Post offer follow up)

• Focused strategy on campus hirings adding premier institute like NIT, IIT, IIIT in the list.

Adequately protecting our Intellectual Property may not be possible

We operate in a global environment; protecting our proprietary technology in the many different jurisdictions we operate in, which is challenging. We depend on a combination of technical innovations, as well as copyrights and trade secrets for protection of our technology. We also maintain patent and trademark protection, as and where applicable and required. However, some jurisdictions have limited laws protecting technologies and other jurisdictions, even if they have laws protecting technology related innovations, are curtailed by limited or difficult enforcement systems. Even in jurisdictions which are equipped with adequate laws and enforcement systems, detection of infringement of our rights may be difficult and even if detected, engaging in litigation to enforce our rights would be expensive.

Departure of our personnel, especially to a competitor, is a particular risk to our technology and intellectual property rights. We generally require all employees and advisors to sign agreements which require that our information be maintained as confidential during and after their employment/engagement. These agreements also assign or otherwise vest rights in the intellectual property developed by these employees and advisors to the company. Even so, these agreements may not effectively prevent disclosure of our information or effectively assign rights to us. Further, detection of violation of these agreements may be difficult and it may be difficult to enforce these agreements even when such violations are detected. Any exposure of our information by former employees or any failure to adequately have rights assigned to us, may have a material adverse effect on our business, financial condition, the results of our operations and our reputation.

Allegations of Infringement of Third- Party Intellectual Property poses Risks

We may face claims by third parties that our products infringe their intellectual property rights. Whether or not we ultimately prevail in any intellectual property dispute, defending the dispute may be expensive, it may distract our management and other key personnel and its outcome is uncertain. Further, if any of our products are found to infringe the intellectual property rights of others, or if we settle a claim in an adverse manner, it may restrict or prohibit further development, manufacture, and sale of our products. A loss or adverse settlement may require us to pay substantial sums of money in terms of damages. We may also be forced to seek licenses to continue to use the product that contains the specific intellectual property. These licenses may not be available on commercially acceptable terms or may not be available at all.

Furthermore, we are required to indemnify our customers against third-party claims of infringement of intellectual property arising out of our customers use of our products and services. Typically, our liability for such indemnification is not limited by limitation of liability provisions in our customer contracts.

Further, we are often in possession of proprietary information of our customers. This information may be wrongly used or disclosed or may be misappropriated by employees of the Company or others. This would result in a breach of our contractual obligations to our customers any such breach may subject us to a significant claim (s) from the customer for damages and may also significantly damage our reputation.

We have a consistent protocol of requiring NDAs before disclosure of our trade secrets/confidential information to third parties. Employees sign confidentiality terms as a part of their employment agreement.

Historically, we have not received any allegation of infringement of third-party intellectual property against our products nor our services.

However, especially since we invest in and introduce new product lines, allegations of infringement of third-party intellectual property rights, against us or our customers with respect to our products or services, or any allegation of breach of our confidentiality obligations to our customers could arise and this could have a materially adverse impact on our business, financial condition the results of our operations and our reputation.

Variability of our Quarterly Operating Results makes comparisons difficult.

Our quarterly operating results have varied in the past due to reasons like seasonal pattern of hardware and software capital spending by customers, information technology, investment trends, achievement of milestones in the execution of projects, hiring of additional staff and timing and integration of acquired businesses. Hence, the past operating results and period to period comparisons may not indicate future performance. Our management is attempting to mitigate this risk through expansion of our client base geographically, increasing annuity revenue such as through managed services and also looking to grow revenues from Horizon 2 areas of IOT Security, ROC Insights etc.

Non-compliance with statutory obligations may result in fines and penalties

We face certain statutory obligations. Some of these obligations arise from the fact that we have registered with Special Economic Zone for software development activities and have availed Customs Duties and Goods and Service Tax exemptions. The non-fulfillment of export obligations or other non-compliance with statutory obligations may result in penalties as stipulated by the Government and this may have an impact on future profitability. The Company has team of in-house attorneys and engages outside counsel/consultants on a need basis. An ongoing monitoring mechanism has been established with respect to applicable laws.

Certifications and compliance

Subex is certified for both Information Security and Quality Management System Periodic reviews and internal audits are carried out based on a defined program. These audits cover the Delivery and Corporate functions based on the scope of certification for management systems which is currently defined as per the requirements of ISO 27001:2013, GDPR and ISO 9001:2015. A system is in place to identify and manage process changes methodically. There is people involvement across organization in the activities of process development, implementation and reviews, there by achieving continual improvement. A centralized repository is in place to cover all policies, processes and controls, which is easily accessible to all employees to ensure strict process adherence.

Non-compliance with Environmental Regulations may lead to fines and penalties

Software development, being generally a pollution free industry, means we are not subject to significant environmental regulations. Nonetheless, non-compliance with applicable environment regulations may lead to significant fines and penalties. We do adhere to the guidelines for disposing of E-wastes as stipulated by the E-Waste (Management and Handling) Rules. Asset related to IT i.e Laptop, servers etc. are disposed to Authorized E-waste Vendor only

Foreign Exchange Fluctuations may lead to variability in our revenue.

We have substantial exposure to foreign exchange related risks on account of revenue from export of software and outstanding liabilities. There is a natural hedge to the extent of expense incurred in same currency. Despite this, particularly given the volatility in the foreign exchange market, there could be significant variations. Our management is attempting to mitigate this risk through hedging by obtaining forward contracts against its revenue and receivables.

Failure to fulfill Contractual Obligation may lead to claims

We enter into contracts with our customers in the ordinary course of business, under which we are obligated to perform and act according to the contractual terms enumerated under them. Any failure to fulfill these contractual obligations may expose us to financial, reputational and other risks.

We are confident we have taken sufficient measures to assure it meets the contractual obligations under the customer contract. Nonetheless, there cannot be any assurance that a customer will not allege a breach by us of our obligations.

Debt Obligation

The Company did not have any debt obligation as on March 31, 2023.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

In accordance with the provision of Section 134(5)(e) of the Companies Act, 2013, and as per the provisions of the SEBI (LODR), Regulations, 2015, the Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. Such Internal Financial Controls were found to be adequate for a Company of this size. The controls are largely operating effectively since there has not been identification of any material weakness in the Company. The Directors have in the Directors Responsibility Statement under paragraph (e) confirmed the same to this effect. The Company has policies and procedures in place for ensuring proper and efficient conduct of its business, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and timely preparations, reliable financial information. The Company has adopted accounting policies which are in line with Indian Accounting Standards ("Ind AS").

Pursuant to the provisions of the Section 134(5)(f) of the Act, the Company during the year devised proper systems and continued to ensure compliance with the provisions of all applicable laws. Any matter that required attention was immediately dealt with. The compliance system was largely found to be adequate and operating effectively. The Directors have in the Directors Responsibility Statement under paragraph (f) confirmed the same to this effect.

The Internal Auditors monitor and evaluate the effectiveness and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company and its subsidiaries. Based on the report of Internal Auditors, process owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and corrective actions thereon are presented to the Audit Committee of the Board.

Subex is certified for ISO 9001:2015 (Quality Management System) and ISO 27001:2013 (Information Security Management System). Internal audits are conducted periodically for projects and support functions to adhere to these international standards. These audits are conducted across Bengaluru, UK and US locations to ensure processes are followed to provide a better customer experience. Summary of the audits are shared across organization to help understand strengths and weaknesses in the system. People involvement in organization process initiatives is one that approaches towards achieving better compliance, standardizing activities to consistently achieve better customer satisfaction.

Subex conducts security awareness programs and improve the existing business continuity controls. Additionally, we continued to identify and involve relevant stakeholders to review and align the processes to Subexs Business objectives.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

(Rs in Lakhs)

Financial Highlights/Year Ending 31st March	2022-23		2021-22
	Consolidated	Standalone	Consolidated	Standalone
Revenue from operations	27,869	27,352	33,344	6,836
Total Income	28,685	27,594	34,381	6,842
Earnings Before Interest, Exceptional Items & Taxes (EBIT)	(4,464)	(4,552)	2526	(832)
Profit/(Loss) before tax	(3,906)	(7,699)	3,369	(447)
Tax expenses	1,215	(823)	1,270	(-)
Profit/ (Loss) after tax	(5,121)	(6,876)	2,099	(447)
Other comprehensive income	620	19	203	(3)
Equity dividend %	Nil	Nil	5%	5%
Share Capital	28,100	28,100	28,100	28,100
Reserves & Surplus	24,084	14,287	28,267	20,826
Net worth	52,184	42,387	56,357	48,926
Gross Property, Plant & equipment, right-of-use asset and other intangible assets	8,524	10,265	5,706	6,263
Net Property, Plant & equipment, right-of-use asset and other intangible assets	4,136	4,057	2,359	715
Total Assets	70,362	60,568	72,008	54,364

 

Key Financial Ratios (Consolidated)	2023	2022	Change
Return on Capital Employed (RoCE) %	(15.94%)	8.38%	(290%)
Return on Net Worth (RoNW)%	(9.44%)	3.77%	(350%)
Basic EPS (Rs/Share)	(0.93)	0.38	(342%)
Debtors turnover (Days)	123	107	14%
Inventory turnover (Days)		NA
Interest coverage ratio	(13.43)	16.91	(179%)
Current ratio	3.05	3.90	(22%)
Debt equity ratio	0.06	0.03	146%
Operating Profit Margin (%)	(11%)	10.54%	(204%)
Net Profit Margin (%) or sector-specific equivalent ratios, as applicable	(18.38%)	6.29%	(392%)
details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof	The return on net worth current year. has decreased mainly due to loss in the

 

Key Financial Ratios (Standalone)	2023	2022	Change
Return on Capital Employed (RoCE) %	(17.20%)	(0.91%)	1790%
Return on Net Worth (RoNW)%	(15.06%)	(0.90%)	1573%
Basic EPS (Rs/Share)	(1.25)	(0.08)	1412%
Debtors turnover (Days)	111	213	(48%)
Inventory turnover (Days)		Not Applicable
Interest coverage ratio	(23.73)	(22.67)	5%
Current ratio	1.11	1.47	(24%)
Debt equity ratio	0.07	0.00	0.00%
Operating Profit Margin (%)	(24%)	(4%)	487%
Net Profit Margin (%) or sector-specific equivalent ratios, as applicable	(25.14%)	(6.54%)	284%
details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof	The return on net worth has decreased mainly due to loss in the current year.

COMMENTARY ON FINANCIAL STATEMENTS

Share Capital

As on March 31, 2023, the issued, subscribed and paid-up share capital of the Company was 281,00,14,675 (Rupees Two hundred and eighty one crores fourteen thousand six hundred and seventy five only) divided into 56,20,02,935 (Fifty six crores twenty lakhs two thousand nine hundred and thirty five only) equity shares of 5 (Rupees five only) each. The Company has not allotted equity shares in FY 2022-23.

Reserves and Surplus

Securities premium

On standalone and consolidated basis, the balance of security premium as on March 31, 2022 amounted to Rs 16,558 lakhs. During the year 2022-23, Rs 26 lakhs has been transferred to securities premium on exercise of share options by employees. As on March 31, 2023, the balance of security premium was Rs 16,584 lakhs.

Retained Earnings

On a standalone basis, as on March 31, 2022, there was surplus balance in retained earnings amounting Rs 135 lakhs. As on March 31, 2023, the surplus balance has decreased to (6,722) Lakhs.

On a consolidated basis, as on March 31, 2022, there was surplus in retained earnings amounting Rs 21,655 lakhs. As on March 31, 2023, the surplus balance has decreased to 16,573 Lakhs

Exchange differences on translating the financial statements of a foreign operation

During the year 2021-22, the balance of Foreign Currency Translation Reserve of (11,303) Lakhs has been included in the Reserves and Surplus to bring it in line with Schedule III of the Act.

During the year 2022-23, the balance of Foreign Currency Translation Reserve of (10,722) Lakhs has been included in the Reserves and Surplus to bring it in line with Schedule III of the Act.

Total equity attributable to equity holders of the company

On a standalone basis, the total equity attributable to equity holders of the Company is at 42,387 lakhs as on March 31, 2023, as compared to 48,926 lakhs as on March 31, 2022.

On a consolidated basis, the total equity attributable to equity holders of the Company has decreased to 52,184 lakhs as on March 31, 2023 from 56,367 lakhs as on March 31, 2022. The movement was primarily on account of loss during the year and exchange gain on foreign currency translation.

Employee Stock Options Plan

Under the Subex Employees Stock Option Scheme-2018 Company has granted NIL options during the year ended March 31, 2023 as compared to 1,448,000 options during March 31, 2022. The net amount carried in respect of stock options outstanding on March 31, 2023 amounts to 444 Lakhs (Previous year: 267 Lakhs).

Property, plant, equipment, right-of-use asset and other intangible assets

During the year, the Company added 4,080 Lakhs on consolidated basis and 4,529 Lakhs on standalone basis, to its gross block. The

Company disposed-off certain assets no longer required. Also, the Company has classified land use-rights related net block to right- of-use assets on account of adoption of Ind AS 116 – Leases. As on March 31, 2023, the balance in right-of-use asset stands at Rs 3,158 Lakhs on consolidated basis and Rs 2,817 lakhs on standalone basis. Refer note 29 of consolidated financial statement and note 28 of standalone financial statement for further details.

The Companys net block of property, plant and equipment, right-of- use asset and other intangible assets was RS 4,136 Lakhs (Previous year Rs 2,359 Lakhs) on consolidated basis and Rs 4,057 lakhs (Previous year Rs 715 lakhs) on standalone basis.

Goodwill

On a consolidated basis, carrying value of goodwill as on March 31, 2023 and March 31, 2022 stood at 34,409 lakhs .

Investments

On a standalone basis, the total investment value as on March 31, 2023 and as on March 31, 2022 stood at 34,555 Lakhs and 42,761 Lakhs respectively.

During the year 2022-23, the Company withdrew Rs 9,200 lakhs from its investment in Subex Assurance LLP.

During the year 2022-23 and previous year 2021-22, there is no diminution in the carrying value of investment. in Subex Digital LLP, Subex Americas Inc. The carrying value of these investments stood at Rs 1,869 Lakhs and Rs 936 lakhs respectively.

Trade Receivables

The major customers of the Company are the telecom and cellular operators overseas and in India. The receivables are spread over a large customer base. There is no significant concentration of credit risk on a single customer.

All the debtors are generally considered good and realizable and necessary provision has been made for debts considered to be bad and doubtful. The level of sundry debtors is normal and is in tune with business trends requirements.

The management believes that the overall composition and condition of trade receivables is satisfactory post assessment of doubtful receivables. As on March 31, 2023, on a standalone basis trade receivable amounted to Rs 10,883 lakhs (previous year; Rs 5,824 lakhs) net of provision for doubtful debts of Rs 4,705 lakhs (previous year; Rs 2,239 lakhs).

On a consolidated basis trade receivable amounted to 9,037 lakhs (previous year 9,681 lakhs) net of provision for doubtful debts of Rs 3,897 lakhs (previous year 1,834 lakhs).

Cash and Cash Equivalents

On a standalone basis, balance in current and deposit accounts stood at 2,448 lakhs as on March 31, 2023, as compared to 802 lakhs as on March 31, 2022.

On a consolidated basis, balance in current, EEFC and deposit accounts stood at 5,238 lakhs as on March 31,2023 as compared to 8,539 lakhs as on March 31, 2022.

Long-terms Loans and Advances

It represents rent deposit, electricity deposit, telephone deposits and employee advances of like nature.

Borrowings

On a consolidated basis, short-term borrowings as on March 31, 2023 was Nil (Previous year Nil).

Income

The Company 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 are considered to constitute one segment and hence the Company has not made any additional segment disclosures.

Geographically, the Company earns income from export of software products and related services to USA, EMEA & Asia Pacific region.

Other Income

Other income consists of income derived by the Company from interest on deposits from banks, refund of research and development expense.

Expenditure

The employee benefits expenses decreased to 20,069 lakhs compared to previous year at 21,449 lakhs on consolidated basis. The decrease on consolidated basis was majorly on account of headcount reductions.

Operating Profits

During the year, on consolidated basis, the Company earned an Operating Profit/(loss) before interest, depreciation, tax, amortization and exceptional items of (3,065) Lakhs being 11% of total revenue as against 3,514 Lakhs at 10.5% total revenue during the previous year. Decrease is majorly on account of decrease in revenue largely due to contraction in Managed Services business and delivery revenue reduction.

On a standalone basis, the Company earned Operating profit / (loss) before Interest, depreciation, tax and exceptional items of Rs (3,365) Lakhs (excluding other income and share of profit/loss from LLPs) being 12.3% of total income (excluding other income and share of profit/loss from LLPs) as against Rs 995 Lakhs at 14.6% during the previous year. Decrease in profit is majorly on account of decrease in revenue.

Interest

During the year ended March 31,2023, company recognized interest expense totaling to 258 Lakhs (Previous year: Rs 194 Lakhs) on a consolidated basis and Rs 230 lakhs (Previous year: Rs 12 Lakhs) on a standalone basis.

For the year ended March 31, 2023, expenditure includes interest on Lease liability recognized as per Ind AS 116, Leases amounting Rs 220 Lakhs (Previous year Rs 124 lakhs) and Rs 199 Lakhs (Previous year Rs 4 lakhs) on a consolidated and standalone basis respectively.

Depreciation

During the year ended March 31, 2023, depreciation expense amounted to 1,399 Lakhs (Previous year Rs 988 Lakhs) on consolidated basis and Rs 1,187 Lakhs (Previous year 163 Lakhs) on standalone basis.

For the year ended March 31, 2023, depreciation and amortization include depreciation on right of use asset recognized as per Ind AS 116- Leases, amounting Rs 830 Lakhs (Previous year 457 lakhs) and 661 Lakhs (Previous year Rs 10 lakhs) on a consolidated and standalone basis respectively.

Tax Expense

For the year ended March 31, 2023, there was a tax reversal of 823 lakhs (Previous year: tax expense of Nil) on a standalone basis.

During the year ended March 31, 2023, tax reversal includes deferred tax credit of Rs 1,147 lakhs and provision for foreign WHT of Rs 324 lakhs.

On a consolidated basis, tax expense was Rs 1,215 lakhs (previous year; Rs 1,270 lakhs).

Tax expense for the year March 31, 2023 includes tax charge of 89 lakhs (Previous year 251 lakhs), deferred tax credit of Rs 534 lakhs (Previous year Rs 426 lakhs) and provision on Foreign tax credit of Rs 1,660 (Previous year 593 lakhs).

Net Profit

On consolidated basis, the net loss of the Company amounted to Rs (5,121) Lakhs as against a net profit of 2,099 Lakhs during the previous year. Total Comprehensive loss for the year is (4,501) Lakhs as compared to profit of 2,302 Lakhs during previous year.

On standalone basis, the net loss of the Company amounted to Rs 6,876 lakhs as against net profit of 447 Lakhs during the previous year. Total Comprehensive loss for the year is 6,857 Lakhs as compared to total comprehensive profit of Rs 450 Lakhs during previous year.

Earnings per Share

Basic Earnings per share computed based on number of common stock outstanding, as on the Balance Sheet date is (0.93) per share (Previous year: 0.38 per share) on a consolidated basis and loss of Rs1.25 per share [Previous year: 0.08 per share] on a standalone basis.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Subexians

FY23 turned out to be a year of stabilisation as the overall corporate environment was impacted since the pandemic. We adopted to a hybrid way of working to enable all Subexians to work as effectively and productively as possible through this year.

Our endeavour was to enhance the Subexian experience throughout their lifecycle spanning recruitment, onboarding, performance, learning & growth and offboarding. As an organization, we take pride in ensuring the experience of each Subexian is positive and meaningful.

Our employees are spread across the globe and the larger centres are our offices located in Bengaluru, London, Denver, Dubai and Singapore. As of March 31, 2023, we had around 900+ full time Subexians on our rolls globally.

Human Resources at Subex is centralized at our corporate headquarters in Bengaluru, with regional HR teams providing local support aligned to the global HR strategy. The function is a key enabler in the Companys growth path by driving focused initiatives for talent development.

Our existing HR policies continue. Work from Home, Loan, Sabbatical, Certification, Team Outing are examples of a few policies which are employee focused. We recognized that remote working is a reality and the new way of working.

The Subex Handbook

As we grow, it is imperative that we document the vast amount of information about Subex as an organization, and the work we do. We needed a central repository about Subex and its functions for the easy access and consumption of any Subexian, new or old. Addressing this need, we have put together a Subex Handbook, a ready reckoner for everything one needs to know about Subex, and this continues to be updated.

This Subex Handbook is a living repository and will undergo continuous updations.

Key hires for the year

Over the period of the last twelve months, we have hired senior executives from the industry to fuel our growth strategy and help take Subex to the next frontier of growth.

Recruitment

Recruitment team was adaptable to execute virtual and in-person interviews considering the hybrid work environment. To add to the rigor and efficacy of the recruitment process, we initiated steps that would enable us to show measurable impact on the growth and quality of the workforce.

The well-established processes like leveraging social media platforms, attending social events to keep up the pace with industry insights, Coffee with the Hiring Manager, Post- offer feedback and engagement, Subexian referral program, interviewer feedback, Buddy Programme etc.. the focus last year was also on hiring key global talent to fuel our growth objectives. Our campus hires and internship programmes were successfully conducted as we are cognizant of the need to bring on board fresh, young minds to infuse innovation within Subex.

Subexian Onboarding

Most of our onboarding last year was carried out remotely. Our onboarding process has always been well recognised and appreciated. onboarding process has always been well recognized and appreciated. Our robust and comprehensive onboarding process with a clear goal of creating a great day-one experience continued. All paperwork is typically done online before the joining date and this has helped save tremendous amount of time for new joiners when they join Subex. The process does not limit to only day one. Quantifiable processes to cover the new joiners 30-60-90 training plan, regular polls and interventions take place to assess employee engagement. The new joiner training is then followed up with an on-the-job training to strengthen the knowledge and skills learnt during the training period.

Performance Management

This year the focus continued on encouraging and developing high performance with the aim of driving meritocracy. The HR team in consultation with business drove multiple high-performance programs in the form of rewarding high performers with enhanced roles and incentive benefits.

Learning & Growth

Learning & development analysis is a continuous process to align people skills with business goals. We have attempted to bring all learning at Subex together, under one roof, for Subexians to have a consistent and robust learning experience. In continuation with the programmes and initiatives of last year, like the skill / competency matrix, we have also brought in a streamlined focus on curated learning, with a mix of external and internal training focused at specific groups and sections of Subexians.

Rewards & Recognition

We understand the importance of what appreciating and rewarding good performance and talent is. We revamped our rewards and recognition programme and have further automated it with additional features to help Subexians promote and establish a sound recognition culture. Although a recognition program involves costs, the outcome is significant. Some of the advantages are –

• Increases the repetition of desired behaviours, thereby aligning people with the desired organizational goals.

• Better employee job satisfaction

• Enhances team spirit

• Improves retention: Employees who feel valued, appreciated, and recognized are more likely to stay with an organization

.• Lowers employee turnover by acting as a retention tool.

• Maintains a strong employer brand.

• Acts as an allied HR process for meeting learning goals

In addition to the specific initiatives we launched last year, like WoW, SPOT awards which continue, we also introduced Subexian profiling platforms through the Internal Communications channel that appreciate and communicate the work done by Subexians to the entire organization.

Compensation

One of the main cornerstones of an employees willingness to stay with an organization is compensation, and we recognize that. Subex is committed to the growth and development of its employees and will continue to invest in mind, money and effort towards this. We look at compensation holistically at Subex, and provide a suitable combination of fixed salary, variable salary, benefits, health and disability insurance, etc.

We constantly keep abreast of industry trends and benchmarks and try to maintain a balanced approach to compensation. We also arrive at the salary bands of Subexians by conducting comprehensive job matching, data validation and quality audits.