Cranes Software International Limited reported a widened standalone net loss of ₹2,005.57 lakh for the financial year ended March 31, 2026, compared to a loss of ₹1,993.34 lakh in the previous year. The standalone loss for the quarter ended March 31, 2026, stood at ₹528.60 lakh. On a consolidated basis, the company reported a net profit of ₹25.09 lakh for the quarter, while the full year resulted in a net loss of ₹1,439.34 lakh. The Board of Directors approved the audited financial results during a meeting held on June 15, 2026.

Financial Performance

The standalone total income for the quarter was ₹0.03 lakh, with total expenses reaching ₹528.63 lakh. Consolidated total income for the quarter was ₹312.87 lakh against total expenses of ₹300.09 lakh. For the full year, consolidated total income was ₹791.28 lakh, while total expenses stood at ₹1,098.41 lakh. The company operates under a single primary segment, IT/ITES.

Audit Qualifications and Compliance Issues

Chaturvedi Sohan & Co., the statutory auditors, issued a qualified opinion on the financial results. The auditors stated that due to negative net-worth and pending legal cases, there is significant uncertainty regarding the company's ability to continue as a going concern. The auditors expressed the view that the company should not prepare the accounts on a going concern basis.

The audit report highlighted material qualifications, including the non-provision of interest on liabilities such as Foreign Currency Convertible Bonds (FCCB), loans from UPS Capital Business Credit, and Bank of India loans. The auditors noted that had the interest on the FCCB liability of ₹29,085 lakh been provided, the loss for the quarter would have been higher by ₹549.36 lakh. Additionally, the company has not restated foreign exchange fluctuations on these liabilities.

Legal and Regulatory Status

The filing disclosed that Bank of India has declared the company and its promoters as "wilful defaulters." Legal proceedings under the Negotiable Instruments Act have been initiated by Bank of India against the company and its directors. The Central Bureau of Investigation (CBI) has also filed a chargesheet against the company and its directors, though proceedings have been stayed by the High Court of Karnataka.

The company stated it has not complied with RBI guidelines since March 2011 and has defaulted on the payment of various statutory dues. The auditors further noted that the securities provided to banks are not adequate to cover the outstanding amounts. Redemption of FCCBs amounting to ₹29,085 lakh, which fell due in April 2011, remains pending as of March 31, 2026.

Cranes Software International Limited has deferred the consideration and approval of its audited financial results for the financial year ended March 31, 2026, to June 18, 2026. The company cited the need for additional time to complete the review of subsidiary financial statements and incorporate necessary clarifications sought by the Audit Committee to ensure accuracy. The board meeting, held on May 30, 2026, also resulted in the appointment of Mr Manoj Bawa as a Non-Executive Independent Director for a term of five years, subject to shareholder approval.

The deferral follows a review process where the Audit Committee sought specific clarifications and reconciliations regarding the financial statements of the company's subsidiaries. The board determined that additional time was required to finalize the consolidated financial statements. Consequently, the submission of the audited financial results to the stock exchanges has been postponed until June 18, 2026.

Mr Manoj Bawa was appointed as an Additional Director designated as Non-Executive Independent Director effective May 30, 2026. A Chartered Accountant with over 35 years of experience, Mr Bawa has held multiple CFO and board-level leadership roles across technology, consulting, healthcare, fintech, and manufacturing sectors. His appointment is subject to the approval of the shareholders.

Following the appointment, the board reconstituted its committees to comply with the Companies Act, 2013, and SEBI (LODR) Regulations, 2015. Mr Bawa has been inducted into the Audit Committee and the Nomination and Remuneration Committee as a member.

Board Committee Composition