Don’t Trade in the Dark—Get Your Pre-Market Report Every Day.Join Now
Search stocks
Cranes Software International Ltd

| Audited Financial Results – Q4 & FY2025-26

BEARISH SENTIMENT

Report Source

⬤15th Jun 26

Summary : Company faces severe financial distress, legal issues, and governance failures, casting doubt on its future.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Total Expenses: 2,005.59 Lakhs (FY 2026)
  2. Consolidated Total Expenses: 1,098.41 Lakhs (FY 2026)
  3. Expected Credit Loss on US subsidiary receivables not provided
  4. Standalone Total Income: 1.14 Lakhs (FY 2026)
  5. Consolidated Total Income: 791.28 Lakhs (FY 2026)
  6. Negative cash flow from operations (Standalone: -1,147.79 Lakhs, Consolidated: -168.13 Lakhs)
  7. Significant cash inflow from financing activities (issue of shares)
  8. Net decrease in cash and cash equivalents (Standalone: -4.79 Lakhs, Consolidated: -22.36 Lakhs)
  9. Overdue FCCB liability of INR 38,695 lakhs (including interest)
  10. Overdue UPS Capital loan liability of INR 696.37 lakhs (including interest)
  11. Overdue Bank of India loans of INR 39,006.21 Lakhs
  12. Significant negative 'Other Equity' (Standalone: -83,631.41 Lakhs, Consolidated: -89,854.65 Lakhs)
  13. High short-term borrowings (Standalone: 42,984.04 Lakhs, Consolidated: 44,801.69 Lakhs)
  14. Investments at cost price (Standalone: 3,215.88 Lakhs)
  15. Remuneration paid to CFO and Company Secretary (19,85,508 INR total)
  16. Standalone shows higher net loss and lower total income compared to consolidated
  17. Consolidated includes 5 audited subsidiaries and 2 foreign subsidiaries

Corporate Overview

  1. India
  2. Germany
  3. Negative net-worth
  4. Pending legal cases
  5. Overdue loans and interest
  6. Statutory dues defaults
  7. RBI non-compliance
  8. Wilful defaulter status
  9. CBI chargesheet against company and directors
  10. Non-provisioning of interest on significant liabilities
  11. Non-restatement of exchange fluctuations
  12. Resolution of significant financial liabilities
  13. Favorable outcomes in legal proceedings
  14. IT/ITES services
  15. Hopeful for recovery
  16. Actively pursuing debt resolutions
  17. Focusing on business stability and revival
  18. Believes in long-term value of subsidiaries
  19. Single primary segment: IT/ITES

Risk Factors

  1. Significant going concern doubt
  2. Declared wilful defaulter
  3. Numerous statutory non-compliances
  4. CBI chargesheet against directors

Key Drivers

  1. Actively pursuing debt resolutions
  2. Focusing on business stability
  3. Expecting favorable debt settlements
  4. Unlocking value from subsidiaries

Auditor’s Report

  1. Qualified Opinion (Standalone and Consolidated)
  2. Going concern uncertainty due to negative net-worth and pending cases
  3. Non-provisioning of Expected Credit Loss on US subsidiary receivables
  4. Default in accounting and payment of various statutory dues
  5. Non-provisioning of interest on overdue loans (UPS Capital, Bank of India, FCCB)
  6. Non-restatement of exchange fluctuation gain/loss on certain liabilities
  7. Inadequate securities provided to banks for outstanding amounts
  8. Investment valuation at cost price instead of fair value
  9. Non-compliance with RBI guidelines since March 2011
  10. CBI chargesheet against the company and directors
  11. Non-provision of bank balance confirmations for some banks
  12. Wilful defaulter status declared by Bank of India
  13. Material uncertainty exists regarding company's ability to continue as going concern

Board Commentary

  1. Going concern uncertainty
  2. Significant financial liabilities
  3. Legal proceedings
  4. Statutory non-compliance
  5. Wilful defaulter status
  6. Legal proceedings u/s 138 Negotiable Instruments Act by Bank of India
  7. CBI chargesheet filed against company and directors
  8. Non-compliance with RBI guidelines since March 2011
  9. Default in accounting and payment of various statutory dues
  10. Declared 'wilful defaulter' by Bank of India

Corporate Governance

  1. Auditors fulfilled ethical responsibilities
  2. Audit Committee reviewed results
  3. Statutory non-compliance
  4. Wilful defaulter status
  5. CBI chargesheet
  6. Non-provisioning of interest
  7. Non-restatement of liabilities

Management Discussion & Analysis

Future Strategy

  1. Actively pursuing resolutions and settlements for debt
  2. Focusing on business stability and revival
  3. Ensuring RBI compliances

Operational Focus Areas

  1. Covering critical liabilities
  2. Sustaining essential business operations
  3. Resolving legal and debt issues

Risk Control Measures

  1. Management negotiating with lenders
  2. Pursuing settlements for debt
  3. Reviewing RBI filings
  4. Defending legal positions

Critical Risks

  1. Going concern uncertainty
  2. Significant financial liabilities (FCCB, UPS Capital, Bank of India loans)
  3. Legal proceedings (Bank of India, CBI)
  4. Statutory non-compliance
  5. Wilful defaulter status
  6. Inadequate security for loans
  7. Non-provisioning of interest and ECL
Cranes Software International Ltd (512093) Quarterly Report Analysis & Insights | Dhanarthi