Subex Limited announced the receipt of a significant income tax refund of ₹5.84 crores for Assessment Year 2011-12. The refund amount was credited to the company's bank account, marking the resolution of a tax matter that has been pending for over a decade.

Refund Details and Composition

The total refund amount comprises both the principal tax amount and accumulated interest over the years. The breakdown of the refund is presented below:

The interest component of ₹1.94 crores represents a substantial portion of the total refund, reflecting the extended duration since the original assessment year.

Legal Background and Court Order

The refund was issued pursuant to an order that gives effect to the High Court's directive for Assessment Year 2011-12. This indicates that Subex had successfully challenged the original tax assessment through legal proceedings, ultimately securing a favorable judgment from the High Court. The implementation of the court order has now resulted in the actual credit of the refund amount to the company's account.

Regulatory Compliance and Disclosure

Subex made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The regulation mandates listed companies to inform stock exchanges about material events that could impact the company's operations or financial position.

Financial Impact

The receipt of ₹5.84 crores represents a positive cash flow for Subex, strengthening the company's financial position. This non-operational income will likely contribute to improved liquidity and may provide additional resources for business operations and growth initiatives. The resolution of this long-standing tax matter also eliminates associated uncertainties from the company's books.

Subex has secured a comprehensive five-year contract with a major energy and telecommunications provider in Europe, marking a significant business development for the IT software company. The deal encompasses a broad range of services and solutions designed to address the client's operational and security requirements.

Contract Overview

The newly secured contract represents a substantial commitment from the European client, with the following key details:

Service Portfolio

The comprehensive contract includes multiple service components that demonstrate Subex's integrated approach to client solutions:

• Fraud Management Software: Core technology solutions to detect and prevent fraudulent activities
• Business Consulting: Strategic advisory services to optimize operations
• Training Programs: Knowledge transfer and skill development initiatives
• Managed Services: Ongoing operational support and management
• Technical Support: Continuous assistance and maintenance services

Strategic Significance

This contract win highlights Subex's ability to secure long-term partnerships with major utility and telecommunications operators in the European market. The five-year duration provides revenue visibility and demonstrates the client's confidence in Subex's service delivery capabilities. The comprehensive nature of the engagement, spanning software, consulting, and managed services, showcases the company's end-to-end solution offerings in the fraud management and telecommunications domain.