Cranes Software International Limited has announced its unaudited financial results for the second quarter ended September 30, 2026. The Board of Directors approved the results during a meeting held on November 14, 2026. The company’s financial statements highlight significant liabilities and ongoing legal proceedings, casting uncertainty on its going concern status.
Cranes Software International Reports Q2 2026 Financials
Cranes Software International Limited has officially submitted its unaudited financial results for the quarter ended September 30, 2026. The company’s Board of Directors approved these results during a meeting held on November 14, 2026.
Standalone Financial Highlights
For the quarter ended September 30, 2026, the company reported a standalone net loss of ₹559.12 lakhs. This is in contrast to the previous year’s figures, indicating a significant shift in financial performance. The standalone financial statements also reveal a substantial equity share capital of ₹3,839.14 lakhs, while the other equity shows a considerable negative balance of (₹84,732.52 lakhs), contributing to a negative net worth.
Consolidated Financial Performance
On a consolidated basis, the company’s financial results for the quarter ended September 30, 2026, show a net loss of ₹1,140.00 lakhs. Similar to the standalone results, the consolidated figures reflect a substantial negative balance in other equity (₹90,103.12 lakhs). The total assets stand at ₹2,463.85 lakhs, while total equity and liabilities amount to the same figure, underscoring the company’s financial position.
Key Auditor Observations and Concerns
The independent auditor’s review report raises several significant concerns that impact the company’s financial presentation and going concern assumption. A qualified conclusion has been issued due to the company’s negative net-worth and pending cases, which create substantial uncertainty about its ability to continue as a going concern. The auditor opines that the company should not prepare its accounts on a going concern basis, despite management’s hope for recovery.
- Legal Proceedings: Bank of India has initiated legal proceedings under Section 138 of the Negotiable Instruments Act against the company and its directors.
- Statutory Dues: The company has not accounted for and has defaulted in the payment of various statutory dues.
- Bank Securities: The securities provided to banks are considered inadequate to cover outstanding amounts.
- Unpaid Loans: A loan from ‘UPS Capital Business Credit’ remains unpaid and overdue since April 2014. The auditor notes that if the liability were restated, the loss for the period would have been higher by ₹14.42 lakhs.
- Non-Performing Assets: Banks have classified the company’s outstanding facilities as “Non-Performing Assets” since 2009. The company has not provided for interest amounting to ₹2,559.89 lakhs on these outstanding amounts due to Bank of India, which, if accounted for, would have increased the loss by ₹2,559.89 lakhs.
- Wilful Defaulter Status: Bank of India has declared the company and its promoters as “wilful defaulters”.
- Foreign Currency Convertible Bonds: Negotiations are ongoing with foreign currency convertible bondholders. The management believes the reflected liability covers these dues, but had interest been provided, the loss would have been higher by ₹548.25 lakh.
- CBI Chargesheet: The Central Bureau of Investigation (CBI) has filed a chargesheet against the company and its directors. While the High Court of Karnataka has granted an interim order staying further proceedings, the case remains a significant legal issue.
- Unrealized Earnings: Earnings in foreign exchanges have not been realized within stipulated periods, and permission is awaited to write them off.
The auditor also noted that the company has not complied with RBI guidelines since March 2011 and has not provided bank balance confirmations for some banks. Furthermore, interest on certain loans (FCCB Loan, UPS Capital, Bank Loan) has not been provided in the books of accounts, amounting to significant sums. The company has also not restated for FCCB liability and a loan from UPS Capital. Redemption of foreign currency convertible bonds, due in April 2011, remains pending.
Source: BSE
