Cranes Software International Limited has released its unaudited financial results for the quarter ended June 30, 2026. The company’s Board of Directors approved these results on August 14, 2026. However, the independent auditor’s report includes several qualified conclusions, notably casting uncertainty on the company’s ability to continue as a going concern due to negative net-worth and pending cases. Several issues regarding expected credit loss, statutory dues, and financial arrangements were also highlighted.
Cranes Software International Reports Q1 FY27 Unaudited Results
Cranes Software International Limited has submitted its unaudited financial results for the first quarter ended June 30, 2026. The Board of Directors reviewed and approved these results on August 14, 2026, following a recommendation from the Audit Committee.
Key Financial Highlights and Auditor’s Review
The company’s financial statement for the quarter reflects a net loss from ordinary activities after tax of (₹541.98) Lakhs on a standalone basis and (₹1,439.34) Lakhs on a consolidated basis. The total comprehensive income for the period also resulted in losses for both standalone and consolidated figures.
However, the independent auditor’s report from Chaturvedi Sohan & Co. raises significant concerns. A primary point is the qualified conclusion on the company’s ability to continue as a going concern, attributed to its negative net-worth and pending legal cases. The auditors recommend that the company should not prepare its accounts on a going concern basis, despite the management’s hope for recovery.
Auditor’s Specific Concerns
The auditor’s report details several areas of concern, including:
- A legal proceeding initiated by Bank of India under Section 138 of the Negotiable Instruments Act.
- Non-deduction and default in accounting and payment of various statutory dues.
- Inadequacy of securities provided to banks relative to outstanding amounts.
- Failure to provide for Expected Credit Loss (ECL) on certain investments and receivables, potentially understating losses by ₹926.24 Lakhs.
- An overdue loan from ‘UPS Capital Business Credit’ since April 2014, with the management’s view on liability coverage being questioned.
- Non-compliance with RBI guidelines since March 2011.
- A chargesheet filed by the CBI against the company and its directors, though an interim order from the High Court of Karnataka has stayed further proceedings.
- Issues related to un-provided interest on various loans and bonds, and discontinuation of restatement for exchange fluctuation gains/losses.
- The bank of India has declared the company and its promoters as “wilful defaulter”.
- Lack of bank balance confirmations for some accounts.
- Foreign exchange earnings not realized within stipulated periods under FEMA.
The statement also includes interim financial results for subsidiaries, with conclusions based partly on management-certified information for foreign subsidiaries that were not reviewed by independent auditors.
Shareholding Pattern
The shareholding pattern for the quarter ended June 30, 2026, indicates public shareholding at 75.49%. Promoters and promoter group shareholding includes 10,00,000 shares pledged/encumbered, representing 2.13% of their total shareholding and 0.52% of the company’s total share capital. Non-encumbered promoter shares amount to 4,60,52,700.
Investor Complaints
There were no investor complaints pending at the beginning of the quarter ended June 30, 2026, nor were any received or disposed of during the quarter, leaving zero unresolved complaints.
The financial results and auditor’s report are prepared in accordance with Indian Accounting Standards (Ind AS) and the Companies Act, 2013.
Source: BSE
