Annual Report 2013 - 2014 - PDF document

Annual Report 2013 - 2014Cranes Software International Limited Annual Report 2013 - 2014Cranes Software International Limited Mr. Asif Khader-Co-founder & Managing DirectorMr. Mukkaram Jan-Co-founder & DirectorMr. Mueed Khader-Mr. Richard Gall-Dr. Peter Ryser-P. PhaneendraNo. 11, Crescent road, Bangalore - 560 001.# 2, Tavarekere, Bannerghatta Road,# 39, Ramana Residency,www.cranessoftware.com Annual Report 2013 - 2014Cranes Software International Limited CRANES SOFTWARE INTERNATIONAL FINANCIAL STATEMENTS2013 - 2014 Annual Report 2013 - 2014Cranes Software International Limited REPORT OF THE BOARD OF DIRECTORSTo,Your Directors are pleased to present this Twenty-ninth Annual Report together with the audited accounts of the1.Systat Software Inc., USA2.Cranes Software Inc., USA.3.Engineering Technology Associates Inc., USA (WOS of Cranes Software Inc., USA) incorporating therein,Engineering Technology Associates (Shanghai) Inc.,4.Dunn Solutions Group Inc., USA (WOS of Cranes Software Inc., USA), incorporating therein, Dunn Solutions5.Systat Software GmbH, Germany6.Cubeware GmbH (WOS of Systat Software GmbH), including its WOS in Austria and Switzerland7.Cranes Software International Pte. Ltd., Singapore8.Tilak Autotech Pvt. Ltd., India9.Proland Software Pvt. Ltd., India10.Caravel Info Systems Pvt. Ltd., India11.Esqube Communication Solutions Pvt. Ltd., India12.Systat Software Asia Pacific Ltd., India13.Analytix Systems Pvt. Ltd., IndiaAudited Accounts for the above-noted Subsidiary Companies per relevant regulations. Standalone2013-142012-132013-142012-13Sales and Operating Revenues197.3214.93,392.33,099.6(2,007.7)(2,758.8)Taxes918.4109.3978.0(2,535.7)(1,029.7)(2,618.7) During the year, your Company, on a standalone basis, achieved a Sales and Operating Revenue ofbasis, as compared to loss of Rs 2,535.7 million in the previous year. This reduction in loss, was primarily due tomillion), ‘Exceptional Items' ( largely prior period income items - Rs 11 million, compared to Rs 0.7 million ofprevious year), Deferred Tax Asset accrual ( Rs 931 million as compared to Rs 144.5 million previous year) andOn a consolidated basis, during the year, your Company together with its subsidiaries, achieved a Sales andOperating Revenue of Rs. 3,392.3 million, up from Rs. 3,099.6 million of the previous year.As outlined in detailed in the Management Discussion and Analysis Annexure, Company management hasMost recently, the Company has been re-establishing itself in the areas of Business Intelligence, Engineering Annual Report 2013 - 2014Cranes Software International Limited Services and Vocational Training and we continue to improve operational effectiveness, optimize costs andthe Varsity division, the Company has refocused and realigned its India-centric operations on training and educationIn the absence of distributable profits in the year, the Directors have not recommended any dividend for the yearSubsidiary Companies / Joint VenturesBalance Sheets of each of the noted Subsidiary Companies are incorporated in the Consolidated FinancialThis along with the Company's results, we believe, presents a full view of the state of affairs of the Company.1.Redemption of Foreign currency convertiblehave fallen due during April 2011 and is yet2.Legal proceeding under Sec. 138 of theCompany. These Banks have applied to theDebt Recovery Tribunal / Hon'ble Courts, etc.3.In our opinion the securities provided toin its endeavours to rebuild its business Annual Report 2013 - 2014Cranes Software International Limited 4.An Advance of Rs. 23,950.68 lakhs is duefrom a party for an inordinate period and inHowever, the Company continues to classifysuch amounts as 'Good'. However, no5.Attention of the members is invited to Noteno. 3.11 of the Notes regarding recognition6.The Subsidiary Company M/s Systat SoftwareInc. has out of amounts due to the Company,of the Company. The Company is yet to apply7.Reference is drawn to Note no. 3.34 of theis mandatory, especially in view of the higherdevelopments have been carried out duringDuring the year, considerable sets of actions werebelief of the Company that ‘Value will be received’with in the current year and until further clarity, it isclose this matter.year under review, the management has put itsThe Company, has implemented several measures Annual Report 2013 - 2014Cranes Software International Limited Your Company has not accepted deposits from the public during the current year.Dr. Peter Ryser and Mr. Richard Holden Gall retire by rotation in the forthcoming Annual General Meeting.Dr. Peter Ryser and Mr. Richard Holden Gall, being eligible, offer themselves for re-appointment.reduce energy consumption by using efficient equipment. Since it is a Software Company, primarily dealing withThe Management of your Company has been committed to building a strong R&D culture from day one and hasRs. 170.3 million during the year.i.Followed the applicable accounting standards in the preparation of the annual accounts;ii.Selected such accounting policies and applied them consistently and made judgments and estimates thatiii.Taken proper and sufficient care for the maintenance of adequate accounting records in accordance with theprovisions of the Companies Act 1956, for safeguarding the assets of the Company and detecting fraud andiv.Prepared the accounts for the financial year on a 'going concern' basis. 8.Further to the above, we would like to draw Annual Report 2013 - 2014Cranes Software International Limited The auditors of the Company, Messrs. S. Janardhan & Associates, Chartered Accountants, retire at the ensuingYour Directors wish to place on record their sincere appreciation for the assistance and co-operation receivedthe year under review.Your Directors also wish to place on record their appreciation for the Contribution made by employees at all levelsof the Company, whose committed efforts are a reflection of our results and we look forward to their continuedAsif KhaderMueed Khader Annual Report 2013 - 2014Cranes Software International Limited Research & Development Activities and Technology Absorption:Your Company has over the past few years been through a challenging phase in research and development. For and on behalf of the BoardAsif KhaderMueed Khader Annual Report 2013 - 2014Cranes Software International Limited DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT WITHTHE COMPANY'S CODE OF CONDUCTManagement Team of the Company and the Members of the Board a declaration of compliance with the Code of Annual Report 2013 - 2014Cranes Software International Limited MANAGEMENT DISCUSSION AND ANALYSIS This discussion covers the consolidated financial performance of Cranes Software International LimitedCranes Software International Limited (NSE: CRANESSOFT; BSE 512093), is a global scientific & engineeringproducts and solutions provider. The Company's business interests straddle software products (proprietary productsThe Company is dedicated to excellence and recognized leadership in technical software products and trainingCranes Software is focused on product development, consulting, distribution and training, and has its directpresence in six countries worldwide. Committed to providing its customers the best in technology, Cranes SoftwareThe world economy showed growth last year. Underlying this growth was a revival in consumer confidence,regions globally.In the IT sector, fundamental aspects of the business landscape continue to favour offshore outsourcing throughthe growing trend of global delivery. All this has set the stage for Indian IT exports to grow 13-15 per cent inthis year.The Company has consolidated its position in the global software products and services segment by undertakingessential business transformation to leverage its product development capability and worldwide presence. In theyear under review, the Company has enhanced its position in the areas of Business Intelligence, EngineeringServices and Vocational Training. The Company continues to improve operational effectiveness, optimize costsIn the year gone by, Cranes furthered its engagement with its clientele by increasing product, service & solutionUniversities and Colleges. Under the College program, Cranes Varsity has continued to train both Students andCompany launched multiple solutions on BUSINESS INTELLIGENCE STORE REAL-TIME OPERATIONSDunn Solutions Group (DSG), a full service IT consulting firm with Business Intelligence and Applicationbelow.On a standalone basis, the Company's Cranes Varsity division has reinforced its position in the training andengineering students, under 'Cranes Varsity College Program'. The division re-launched its ITAP program andintroduced the Project Oriented Certificate Program for College students. Under the Cranes Varsity UniversityProgram banner, the Company released its own product NISA to the Mechanical and Civil departments inengineering colleges this year, hence penetrating further into the engineering segment and reducing its dependency Annual Report 2013 - 2014Cranes Software International Limited on third party products. Going forward, the Company plans to further establish its relationships with academia andDuring the year, the Company, on a standalone basis, achieved a Sales and Operating Revenue ofRs. 197.3 million, down from Rs. 214.9 million. This is largely due to reduction of dependency on third party salesRs. 999.7 million, on Standalone basis, as compared to loss of Rs 2,535.7 million in the previous year. ThisRs 11 million, compared to Rs 0.7 million of previous year), Deferred Tax Asset accrual (Rs 931 million asOn a consolidated basis, during the year, the Company together with its subsidiaries, achieved a Sales andOperating Revenue of Rs. 3,496.5 million, up from Rs. 3,308.3 million of the previous year.The Company, in the mean while, is also constantly working on improving its balance sheet position by pursuingInternational Subsidiary PerformancesETA (a 100% subsidiary of Cranes Software):Engineering Technology Associates, Inc. (ETA) provides engineering & development services from Concept toProduct. The Company offers a variety of services including product design, complete product developmentanalysis, engineering staffing and IT services. ETA is also the developer of simulation and analysis softwaretools. The Inventium Suite® is ETA's enterprise product development solution. The suite offers a high performanceETA released its Blank Size Engineering module for the NX environment, called BSE-in-NX, at the FABTECHshow (November 18, 2013) in Chicago. The solution is a complete toolset for accurately predicting flat blankprofiles, optimal nesting layouts and forming feasibility for 3D part models. It is now available for users ofSiemens' NX digital product development software, via an icon on the NX toolbar.ETA released DYNAFORM Version 5.9.2 in August of 2014. DYNAFORM is a simulation software solution, whichcosts and improving overall productivity. This latest release offers many new and improved features, as well asbetween ETA and Siemens, which established ETA as a Foundation Partner in the Siemens' Partner Program.a relationship which allows ETA to work directly with current NX users. Annual Report 2013 - 2014Cranes Software International Limited ETA continues its strategic partnership with Red Cedar Technology to offer the most complete and powerfulsolution on the market for die system simulation and optimization. Under the arrangement, ETA offers RedCedar's proprietary optimization technology, SHERPA™, as a module of its eta/DYNAFORM® product. Themodule is called OP, for Optimization Platform. ETA also offers Livermore Software Technology Company'snow purchase the Inventium Suite® add-on for finite element analysis. The add-on allows the user to automaticallyETA has expanded its work in Product Design and Development and continues to make impressive developmentsin the area of mass reduction strategies. With Miles Per Gallon (MPG) being of top concern for the heavy truckand bus industry, ETA will continue to penetrate this market, utilizing its expertise in the areas of mass reductionand performance efficiency.ETA also has a new initiative for securing US Government Engineering Contracts, by joining a US GovernmentConsortium, called NCMS. ETA also continues to expanding its list of partners and diversify its portfolio ofpractices. Its Application Development practice offers expertise in portal technology, mobile and custom applicationDunn Solutions Group development and deployed the first commercial release of its Higher Education BI Frameworkto a large community college in Illinois this year. Dunn Solutions has also engaged with SAP to sell this solutionto the desktop using dynamic visualizations. These dynamic visualizations - easy-to-understand speedometers,from the employee, customer and supplier communities. Members can not only submit and track their ideas, Annual Report 2013 - 2014Cranes Software International Limited financial and investment firms. It offers secure client account access so that clients can subscribe tofor their achievements in the Liferay open source community. Dunn Solutions also became one of only threeLiferay partners in the U.S. who are authorized to deliver training on behalf of Liferay. Dunn Solutions has nowleveraging its partnerships with SAP, Microsoft, Liferay and Oracle. This year Dunn Solutions renewed its Goldboth functional and technical requirements. As the only app-capable BI platform in the industry, it offers vastCubeware Announced Addition of Syscon BI Integration Applications for ERP Systems to BISTRO BI AppCubeware announced the addition of Syscon's BI AX, IFS and NAV cubes and content integration applications toMicrosoft Dynamics AX and NAV, as well as IFS enterprise resource planning (ERP) systems.Cubeware Added STAS CONTROL for Manufacturing to BISTRO BI App Store to Boost Factory ProductionCubeware announced the addition of STAS CONTROL for manufacturing applications to its BISTRO businessintelligence (BI) applications store. STAS GmbH, which develops business planning and analysis solutions,designed the STAS CONTROL application for industrial companies. The application provides industrial companiesneeded to generate data models within Essbase. It fills the gap within the Cubeware Importer functions for the Annual Report 2013 - 2014Cranes Software International Limited Cubeware launched Team Server MonitorThis application helps to value the reporting infrastructure at a Company. The obtained information results in aCubeware added Cubeware Sales Navigator to BISTRO BI app store. This application is built on best practice andCubeware added TM1 Complete to BISTRO BI App StoreCubeware Launched Cockpit V6pro Release 4work faster, even more flexible and convenient. It strengthens the capabilities to gain more insights through theapplications and the Team Server) and makes the frontend even more attractive for bigger companies.During the year under review Cubeware focused on areas such as BI and SAP, mobile BI and planning through(cloud-ready, hybrid structures etc.) and therefore enhancing the whole sustainability of the platform as well asestablishing the Team Server as the core component of Cubeware BI systems. This major release is going to beResearch Institutes, Universities and Commercial Laboratories worldwide, Systat Software is committed to providingSystat Software announces SigmaPlot Version 13In July 2014, Systat Software announced SigmaPlot Version 13, their latest version of the most advancedproperty change. Version 13 has increased ease of use to quickly analyze data and create exact, publication-system as well as a cloud based SaaS model for both SigmaPlot and SigmaStat. This will have a very good Annual Report 2013 - 2014Cranes Software International Limited expertise, experience and domain knowledge in the fields of Vocational Training, Engineering Services andBusiness Analytics to grow and achieve new grounds. By anticipating and addressing the needs of the Industry,has already secured certain favorable settlement options in the year under review. The Company is confident thata significant part of these loans will be settled/ restructured by the end of the current financial year.Going forward, the Company plans to establish itself in the educational sector. To achieve this, the Company hasmade substantial changes to its India centric operation by means of upgrading its facility, improving facultyexposure, incorporating specialized training programs to address the dynamic needs of the software sector. Tointelligence products to serve existing customers and establishing new markets. The Company, will also continueperiod under review.Rs.1,216.8 million from Rs. (86.3) million in the previous fiscal year. The net increase is mainly attributable to thelosses reported in the year. Annual Report 2013 - 2014Cranes Software International Limited Long Term BorrowingsThe net total borrowing position (Long Term + Short Term + Current Maturities of Borrowings + Loans repayableLong Term ProvisionsShort Term BorrowingsAlready commented on along with Long Term BorrowingsTrade PayablesLargely and significantly commented upon under the head 'Long Term Borrowings' since the matter is interlinkedShort Term ProvisionsThe amount was largely due to provision tax (Net of advance tax and TDS) for the given year.There has been minimal Research and Development in view of the business conditions noted above. The notedRs. 23.3 million, reflective of the improved prospects of sale in the forthcoming fiscal year.Trade ReceivablesCash and Bank balances have reduced to Rs. 88.1 million compared to Rs. 104.1 million last year.Short Term Loans and Advances Annual Report 2013 - 2014Cranes Software International Limited Rs. (63.3) million served to depict a Total Income of Rs 3496.5 million.Other Expenses changed marginally from Rs. 2,111.1 million to Rs. 2,102.6 million, including on account ofyear. This has largely been analyzed on individual accounts above.Having grown to a sizeable operation, the management has focused on augmenting its internal control systemsand processes to support further growth opportunities. To this effect, the Company is certified under ISO 9001 Annual Report 2013 - 2014Cranes Software International Limited CORPORATE GOVERNANCE REPORTThe Corporate Philosophy, as enshrined in its mission statement of "Exploring for a Better Tomorrow" is toto corporate values, codes of conduct and other standards of behaviour. The Company seeks to ensureThe composition of the Board is as follows:Promoter Group :Mukkaram JanDr. Peter RyserThe Board met 4 times during the year, as follows : June, 201330 May, 2013September, 201314 August, 2013December, 201314 November, 2013March, 201413 February, 2014Details of attendance at Board Meetings, last AGM and details of memberships in other Boards and BoardAttendance via web presentation and Telephone call has been considered as having attended the Board Meeting.Name of theDate ofMembership attendedin attendedlast AGMBoardMembershipChairmanshipAsif Khader30 April, 20024Y632Mukkaram Jan30 April, 20024N71-Mueed Khader30 April, 20024Y61-Richard Gall16 May, 20024Y-21Dr. Peter Ryser29 March, 20054N-1- Annual Report 2013 - 2014Cranes Software International Limited 30-05-201314-08-201314-11-201313-02-2014Richard GallYesYesYesYesAsif KhaderYesYesYesYesDr. Peter RyserYesYesYesYesThe Company has a Shareholder Grievance Committee consisting of Mukkaram Jan and Asif Khader to look intothe grievances of investors. There were no unresolved grievances from the investors / shareholders as oninvestor.grievances@cranessoftware.com in compliance with clause 47(f) of the listing agreement for speedyAct, 1956 to finalize and propose the remuneration for Whole time Directors and Managing Director. The committeeconsists of Mr. Asif Khader, Mr. Richard Gall and Mr. Mueed Khader. The committee met on 14th August, 2013 toconsider terms to the Whole-time Directors and Managing Director. All the committee members were present forMr. Mueed Khader and Mr. Mukkaram Jan be re-appointed as Whole-time Directors on the same terms as theirsalary, perquisites and allowances and a commission to the Whole-time Directors and Managing Director.net profits, as decided by the Board but within the limits set under the provisions of the Sec 309 of the CompaniesSeptember 11, 2006. The basis of determining the specific amount of commission payable to these directors isNo commission was paid out to the Non-Executive Directors for the year under review. Date of AGMTimeVenueSpecial Resolutions passed November, 2011 September, 2012 September, 2013Millers Tank Bund Area,Vasanthanagar, Bangalore - 560052Millers Tank Bund Area,Vasanthanagar, Bangalore - 560052Millers Tank Bund Area,Vasanthanagar, Bangalore - 560052securities in the Company.Richard Gall-Asif Khader-MemberDr. Peter Ryser-MemberThe Committee met four times during the year. The dates of the meetings with details of attendance of the Annual Report 2013 - 2014Cranes Software International Limited Directors, Management or relative etc., which may have potential conflict with the interest of the Company.Insider Trading :also updated on the corporate website (www.cranessoftware.com). The quarterly results and the shareholdingGENERAL SHAREHOLDER INFORMATION A29th Annual General Meeting Date and Time29th September, 2014 at 10:30 AMVenueNo.16-D, Miller Tank Bund Area, Vasanthnagar, Bangalore - 560 052 BFinancial Calendar Audited Annual Results - 2013-1429th May, 2014 Unaudited results for the quarter ending June 30, 201414th August, 2014 Unaudited results for the quarter ending September 30, 2014Second week of November, 2014 Unaudited results for the quarter ending December 31, 2014Second week of February, 2015 Audited Annual Results - 2014-15Last week of May, 2015CBook closure date24th September, 2014 to 29th September, 2014 DDividend payment date EListing of Equity shares Name and Address of Stock ExchangeStock Code Bombay Stock Exchange Ltd. (BSE)512093 P J Towers, Dalal Street, Mumbai - 400001 Exchange Plaza, Bandra Kurla Complex, Bandra (E),Trading of shares currently Mumbai - 400051suspended The Listing Fee has been paid to all the Stock Exchanges FWebsite of the Companywww.cranessoftware.comGRegistrar and Transfer AgentsPvt Ltd - since merged),No. 30, Ramana Residency, HDemat ISIN Number allotted to the Company Annual Report 2013 - 2014Cranes Software International Limited BSEMonthHighLow(Rs.)(Rs.) 2.502.07 2.621.81 2.331.65 2.301.67 2.171.14 3.532.00 5.653.10 6.024.38 5.554.00 5.424.51 4.753.174.442.94 The Share price data on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of IndiaCompany during the year, which have largely been addressed by the Company.Registrar & Transfer Agents :Pvt Ltd - since merged), No.30 Ramana Residency, 4th Cross, Sampige Road, Malleswaram,Share Transfer System :necessary.statutory auditors of the Company regarding compliance with the provisions of the above clause and the same is Annual Report 2013 - 2014Cranes Software International Limited Holders% of Promoters6.38% Insurance Companies0.76% FII0.10% Foreign Corporate Bodies / OCBs0.07% Bodies Corporate19.56% Resident51.23% Trust0.00% Clearing Members0.99% NRI5.17%TotalThe Company has its product development center, corporate office and various branches at Bangalore.1.To the Company:Mr. P. PhaneendraCompliance Officer,# 2, Tavarekere, Bannerghatta Road, BTM Layout,To the Registrar & Transfer Agent – for Share Transfers / Transmissions etc.Mr. Vijay GopalVice President up to 50025,35263.035,551,4084.71 6,38515.885,498,0764.67 3,8919.676,247,5485.31 1,4583.633,852,7113.27 7151.782,628,7292.23 6311.573,024,7922.57 9872.457,436,5956.31 8001.9983,526,99170.9340,219100.0011,77,66,850100.00 No. of Shares Held Number% of TotalNumber% of Total(1)(2)(3)(4)(5) Annual Report 2013 - 2014Cranes Software International Limited AUDITOR’S CERTIFICATE ON COMPLIANCE WITH THE CONDITIONSOF CORPORATE GOVERNANCE UNDER CLAUSE 49 OF THE LISTINGTo,for the year ended 31 March 2014, as stipulated in clause 49 of the Listing Agreement of the said Company withaudit nor was it conducted to express an opinion on the financial statements of the Company.efficiency of effectiveness with which the management has conducted the affairs of the Company.For S.JANARDHAN & ASSOCIATESBangalorePartner Annual Report 2013 - 2014Cranes Software International Limited To, The Members of 1.We have audited the accompanying financial statements of Cranes Software International Limited, which2.Management is responsible for the preparation of these financial statements that give a true and fair viewof the financial position, financial performance and cash flows of the Company in accordance with theAccounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (“the Act”)that give a true and fair view and are free from material misstatement, whether due to fraud or error.3.Our responsibility is to express an opinion on these financial statements based on our audit. We conducted4.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theof the risks of material misstatement of the financial statements, whether due to fraud or error. In makingthose risk assessments, the auditor considers internal control relevant to the Company’s preparation and5.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our6.The attached Balance Sheet as at 31 March, 2014 is drawn on the basis of the Principle of ‘Going6.1Redemption of Foreign currency convertible bond amounting to Rs. 34,682.13 lakhs (42 millionEuros) to the holders of the bonds have fallen due during April 2011 and is yet to be redeemed6.2Legal proceedings u/s. 138 of the Negotiable Instruments Act have been initiated by variousBanks against the company. These Banks have applied to the Debt Recovery Tribunal (DRT) /6.3In our opinion the securities provided to Banks are not adequate to cover the amounts6.4An advance of Rs. 23,950.68 lakhs is due from a party for an inordinate period and in ouropinion recovery of the same is doubtful. However, the company continues to classify suchamounts as ‘Good’. However, no evidence has been given to us to consider those amounts as6.5Attention of the members is invited to note 3.11 of the Notes regarding recognition of deferred(year ended March 31, 2013 Rs. 13,249.77 lakhs). This does not satisfy the virtual certainty test6.6The subsidiary company M/s. Systat Software Inc has out of amounts due to the company,similar amount in the books of the company. The company is yet to apply to the Reserve Bank Annual Report 2013 - 2014Cranes Software International Limited 6.7Reference is drawn to note no. 3.34 of the notes regarding the amounts classfied under “Fixedsuch test of impairment as on the date of Balance Sheet is mandatory, especially in view of the7.Further to the above, we would like to draw the attention of the members to note no. 3.28 regarding8.We further report that, except for the effect, if any, of the matters stated in paragraphs 6.7 above,9.In our opinion and to the best of our information and according to the explanation given to us, the financiala)in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;b)in the case of the Statement of Profit and Loss, of the loss for the year ended on that date; andc)in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.10.As required by the Companies (Auditor’s Report) Order, 2003 issued by the Central Government of India interms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the mattersspecified in paragraphs 4 and 5 of the Order.11.As required by section 227(3) of the Act, we report that:a)We have obtained all the information and explanations which to the best of our knowledge and beliefb)In our opinion proper books of account as required by law have been kept by the Company so far asc)The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Reportd)In our opinion, the Balance sheet, the Statement of Profit and Loss and the Cash flow Statementsection 211 of the Companies Act, 1956 (“the Act”) read with the General Circular 15/2013 dated 13thsubject to Para No. (6.5) as stated above regarding recognition of Deferred Tax Asset one)On the basis of the written representations received from the directors as on March 31, 2014, takenFor S.JANARDHAN & ASSOCIATESPartner, Membership No.201862 Annual Report 2013 - 2014Cranes Software International Limited 1.(a)The Company has maintained proper records showing full particulars including quantitative details(b)The fixed Assets have been physically verified by the management during the year.(c)The Company has not disposed off any substantial part of the fixed assets during the year.2.(a)The inventories have been physically verified during the year by the management. In our opinion the(b)In our opinion, and according to the information and explanations given to us, the procedures of(c)The company is maintaining proper records of inventories. The discrepancies noticed on verificationbetween the physical stocks and the book records were not material.3.(a)The Company during the year has granted unsecured loan of Rs. 1024.10 Lakhs to five subsidiarymaximum amount involved during the year was Rs. 11,856.22 lakhs and the year-end balance wasRs. 11,773.42 lakhs. Apart from the above, the Company has not granted any loan, secured or (b)In our opinion and according to the information and explanations given to us, the terms and conditionson which such loans have been granted are not prima facie prejudicial to the interest of the Company.(c)The receipt of the principal amount is in accordance with the terms and conditions of such granted(d)There are no overdue amounts due from such parties.(e)The company has not taken any loan from Companies, Firms and other parties covered in the registermaintained under section 301 of the Companies Act, 1956. Accordingly, the provisions of clause (3)(f) and (3) (g) of Companies (Auditor's Report) Order, 2003 are not applicable to the Company.4.In our opinion and according to the information and explanations given to us, there are adequate internalcontrol procedures commensurate with the size of the Company and the nature of its business with regardto the purchases of inventory, fixed assets and with regard to sale of goods and services. During the5.a.According to the information and explanations given to us, we are of the opinion that the particulars ofb.In our opinion and according to the information and explanations given to us, the transactions madein pursuance of contracts or arrangements entered in the register maintained under section 301 of theCompanies Act, 1956 and exceeding the value of Rs. 5 lakhs in respect of any party during the year,6.The company has not accepted any deposit from the public and as such the provisions of clause 4(vi) of7.In our opinion, the company's in house internal audit system needs to be further strengthened to8.The Central Government has not prescribed the maintenance of cost records as required under clause (d)9.(a)According to the information and explanations given to us, there have been delays and defaultsand Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Service Tax, WealthTax, Customs Duty and Cess with the appropriate authorities. As on 31 March, 2014, the Annual Report 2013 - 2014Cranes Software International Limited Name of the StatuteNature of duesProvident Fund31.90 Commercial Taxes ActProfessional Tax Employee State Insurance ActESI Income Tax ActWithholding Taxes Service TaxService Tax Commercial Taxes ActSales Tax/Value Added Tax68.64 Income Tax ActSelf Assessment Tax Wealth Tax ActWealth Tax Income Tax ActDividend Distribution Tax Income Tax ActFringe Benefit Tax (b)According to the information and explanations given to us, no undisputed amounts payableInsurance, Income Tax, Wealth Tax, Service Tax, Customs Duty, Sales Tax and Cess were inName of the StatuteNature of Provident Fund20.73 Employees State Insurance ActESI Income Tax ActWithholding Taxes Service TaxService Tax97.49 Commercial Taxes ActSales Tax/Value Added Tax50.08 Income Tax ActSelf Assessment Tax Wealth Tax ActWealth Tax Income Tax ActDividend Distribution Tax Income Tax ActFringe Benefit Tax(c)According to the information and explanations given to us, there are no dues of Sales tax,Service tax, Income tax, Customs duty, Wealth Tax and Cess, which have not been depositedStatuteduesAmountYearIncome Tax Act,2008 - 09Income Tax Appellate1961Tax Income Tax Act,2009 - 10Income Tax Appellate1961Tax theService2004 - 05 toCustoms, Excise and ServiceFinance Act, 1994Tax2007 - 08Tax Appellate TribunaltheServiceFinance Act, 1994Tax2007 - 08Authorities Annual Report 2013 - 2014Cranes Software International Limited 10.The Company has accumulated losses, as at March 31, 2014. The Company has also incurred cashin the immediate preceding financial year.11.Amount of defaultPeriod of default Bank of India22,295.79From 2009 till date Allahabad Bank3,797.96From 2009 till date Canara BankFrom 2009 till date Industrial Development Bank of India4,104.76From 2009 till date State Bank of Mysore3,676.65From 2009 till date The company has not issued any Debentures during the year.12.According to the information and explanations given to us, the company has not granted any loans and13.In our opinion, the Company is not a chit fund or a Nidhi / Mutual Benefit Fund / Society. Therefore the14.According to the information and explanations given to us, the Company is not dealing in or trading in any15.According to the information and explanations given to us, the company has not given any guarantee for16.In our opinion and according to the information and explanations given to us, the term loan(s) have been17.According to the information and explanations given to us and on an overall examination of the balancesheet of the company, we report that no funds raised on short term basis have been used for long term18.The company has not made any preferential allotment of shares during the year and hence the provisionsof clause (xviii) of para 4 of this Order are not applicable.19.The company has not issued any debentures during the year and hence the provisions of clause (xix) of20.The company has not raised any money by way of public issues during the year and hence the provisions21.During the course of our examination of the books of accounts carried on in accordance with the generallyhave neither come across any instance of fraud on or by the Company, noticed or reported during the yearnor have been informed of such case by the management.For S.JANARDHAN & ASSOCIATES Name of the Banks & Financial Institutions Annual Report 2013 - 2014Cranes Software International Limited AS AT MARCH 31, 2014(Amount in Rupees)Note No.March 31, 2014March 31, 2013IEQUITY AND LIABILITIES(1)Shareholders' Funds(a)Share capital3.01235,533,700235,533,700(b)Reserves and surplus3.02(904,750,738)95,020,772(2)Non-Current Liabilities(a)Long-term borrowings3.03147,894,830309,218,567(b)Long-term provisions3.047,243,0548,094,971(3)Current Liabilities(a)Short-term borrowings3.0587,671,90820,273,767(b)Trade payables3.06767,274,528530,739,896(c)Other current liabilities3.0711,586,942,07010,915,052,881(d)Short-term provisions3.0845,124,27622,709,368TOTAL11,972,933,62812,136,643,922II.ASSETS(1)Non-Current Assets(a)Fixed assets(i)Tangible assets3.09179,727,874187,689,5811,121,346,534962,998,856(iii)Intangible assets under development2,245,878,3132,749,931,957Capital work in progress-(b)Non-current investments3.10800,917,790800,917,790(c)Deferred tax assets (net)3.112,255,989,4001,324,976,900(d)Long term loans and advances3.124,346,209,2964,109,401,846(2)Current Assets(a)Inventories3.135,010,5007,727,734(b)Trade receivables3.14804,193,7081,739,667,478(c)Cash and bank balances3.1511,756,89012,707,575(d)Short-term loans and advances3.16201,903,323237,195,706TOTAL11,972,933,62812,136,643,922Significant accounting policies and notes to the accounts2 & 3Asif KhaderMueed KhaderP. PhaneendraManaging DirectorDirectorCompany SecretaryBengaluruBengaluruMay 29, 2014May 29, 2014 Annual Report 2013 - 2014Cranes Software International Limited STATEMENT OF PROFIT AND LOSSFOR THE YEAR ENDED MARCH 31, 2014 (Amount in Rupees)PARTICULARSNote No.March 31, 2014March 31, 20133.17197,325,549214,979,2273.1872,969,028177,437,177Total Revenue270,294,577392,416,404 Cost of materials consumed--36,238,29440,598,4103.192,717,2344,475,9373.2083,477,22797,685,3043.21947,092,529902,110,4383.22303,941,831423,751,1713.231,511,554,5331,568,126,198Total Expenses2,885,021,6483,036,747,458(2,614,727,071)(2,644,331,054)3.2411,039,651(711,472)(2,603,687,420)(2,645,042,526)3.25685,493,289-(1,918,194,131)(2,645,042,526)Tax expense:(1) Current tax--931,012,500144,558,900(3) Tax adjustment of earlier years(12,589,879)(35,241,956)(999,771,510)(2,535,725,582)(Nominal Value per Share Rs. 2)(1)Basic / Diluted(14.31)(21.53)(2)Basic / Diluted(8.49)(21.53)Significant accounting Policies and notes to the accounts2 & 3Chartered AccountantsAsif KhaderMueed KhaderP. PhaneendraManaging DirectorDirectorCompany SecretaryBengaluruBengaluruMay 29, 2014May 29, 2014 Annual Report 2013 - 2014Cranes Software International Limited PARTICULARSCURRENT YEARPREVIOUS YEAR(2,603,687,419)(2,645,042,526)(93,752)-327,791,107(163,989,238)Depreciation and amortization303,941,831423,751,171Dividend / interest income (net) (8,602,372) (1,977,246)1,143,560,0001,480,000,000947,092,529902,110,438Operating profit/(loss) before working capital changes110,001,924(5,147,401)2,717,2334,872,426Trade receivables2,819,994(59,230,930)35,292,383 Current liabilities(638,658,429)104,682,078Cash generated from operations(487,826,895)15,081,321Direct taxes paid--Net cash from Operations before extraordinary items(487,826,895)15,081,321685,493,289-197,666,39415,081,321Purchase of fixed assets / increase in work in progress received 1,320,000 -61,850,467(1,91funds Borrowings(98,065,836)(59,938,125)Long term loans and advances(147,317,756)73,978,30421,562,99128,177,372Net cash from Financing Activities(260,467,545)(20,564,112)12,707,57520,102,200Closing cash and cash equivalents11,756,89012,707,575Asif KhaderMueed KhaderP. PhaneendraManaging DirectorDirectorCompany SecretaryBengaluruBengaluruMay 29, 2014May 29, 2014 STATEMENT OF CASH FLOWSAS AT MARCH 31, 2014 Annual Report 2013 - 2014Cranes Software International Limited 1.BACKGROUNDCranes Software International Limited (CSIL) was incorporated on 22nd December, 1984. CSIL is a Companyacross the globe. Presently, CSIL has developed IP’s and products in data Integration & visualization,2.SIGNIFICANT ACCOUNTING POLICIES2.1Basis of preparation of financial statementsdifferences if any between the actual results and estimates are recognized in the period in which the resultsSchedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparationand measurement principles followed by the Company for preparation of financial statements. However, ityear.2.2Use of estimatesfor bad and doubtful debts. Any revision to accounting estimates is recognized prospectively.2.3Revenue recognition(i)Revenue from sale of products is recognized, in accordance with the sales contract, on delivery ofgoods to the customer. Revenue from product sales are shown net of taxes.(iii)Revenue from technical service, training, support and other services is recognized as the related(iv)Dividend is Annual Report 2013 - 2014Cranes Software International Limited 2.4Cash flow statementof the Company are shown separately.2.5Fixed assets and capital work-in-progress(i)Fixed assets are stated at historical cost less accumulated depreciation. Cost includes all expenses2.6Intangible assets(i)All intangible assets are stated at cost less accumulated amortization.(iii)Internally generated intangible assets are valued at cost which were incurred during the developmentto the date the intangible asset is ready for its intended use, is capitalized in accordance with Accounting(v)Amount paid towards the acquisition of intangible assets, which is not put to use as at reporting date2.7Research and development(i)The Company in association with the Centre for Sponsored Schemes and Projects of Indian Instituteof Science, Bangalore has set up a designing and testing laboratory. The Indian Institute of Scienceproducts developed by the laboratory.The Company, also in association with Indian Institute of Science, and Society for Innovation and(iii)Research cost relating to the above are charged to statement of profit and loss and the expenditure2.8Depreciation and amortization(i)Depreciation has been provided on straight line method at the rates prescribed under Schedule XIV ofthe Companies Act, 1956. In respect of assets purchased / sold during the year, depreciation isThe management estimates the useful life of customized software/commercial rights procured for Annual Report 2013 - 2014Cranes Software International Limited (iii)Depreciation on individual low cost assets (costing less than Rs.5,000) is provided for in full in the(iv)Other intangible assets are amortized over their respective individual estimated useful life on a straight(v)After recognition of impairment loss, the depreciation charge for the asset is on the revalued amount2.9Impairment of assetsnature. If any such indications exist, the Company estimates the recoverable amount of the asset. If suchat cost or net realizable value, whichever is lower. The cost formula used is weighted average basis. Netcompletion and estimated cost necessary to make the sale. The cost of inventories is net of VAT credit.2.11Investments(i)Investments are either classified as current or non current based on the management’s intention atthe time of purchase.(iii)Current investments are carried at the lower of cost or fair value. Any reduction in carrying amount(i)Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction.(iii)Exchange differences arising on foreign currency transactions are recognized as income or expense(v)Non – monetary assets & liabilities are translated at the rate prevailing on the date of transaction. Annual Report 2013 - 2014Cranes Software International Limited (i)Post-employment benefit plansFor defined benefit schemes, the cost of providing benefits is determined using the projected unitand losses are recognized in full in the statement of profit and loss for the period in which they occur.vested. The retirement benefit obligation recognized in the balance sheet represents the presentby the fair value of scheme assets. Any asset resulting from this calculation is limited to the present(ii)Short-term employee benefits(iii)Long-term employee benefitsIncome Tax / Deferred Tax(i)Current tax is calculated in accordance with the relevant tax regulations.(iii)Minimum Alternative Tax (MAT) paid in accordance to the tax laws, which gives rise to future economicbenefits in the form of adjustment of future income tax liability, is considered as an asset if there isAccordingly, MAT is recognized as an asset in the balance sheet when it is probable that the futureeconomic benefit associated with it will flow to the Company and the asset can be measured reliably.(v)The Company offsets deferred tax assets and deferred tax liabilities relating to taxes on income Annual Report 2013 - 2014Cranes Software International Limited obligation that may, but probably will not, require an outflow of resources. Where there is a possible(i)Basic earnings per share is calculated by dividing the net earnings available to the equity shareholdersby the weighted average number of equity shares outstanding during the year.Diluted earnings per share is calculated by dividing the net earnings available to existing and potential2.17Leases(i)Lease arrangements where substantial risk and rewards incidental to ownership vests with the lessor,management strategy.transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or lossrecognized in shareholders’ funds is transferred to the statement of profit and loss for the period.However, the Company has no outstanding hedged transaction nor entered into any hedging transactionduring the year. Annual Report 2013 - 2014Cranes Software International Limited 3.NOTES ON ACCOUNTSSHARE CAPITALAs atAs at31-03-201431-03-2013165,000,000 (Previous Year 165,000,000) Equity Shares 330,000,000 2,00,000 (Previous Year 2,00,000) Preference shares of Rs.100/- each20,000,000 ISSUED, SUBSCRIBED AND FULLY PAID-UP117,766,850 (Previous year 1235,533,700 TOTAL235,533,700 235,533,700The Company has only one class of shares referred to as equity shares having a par value of Rs. 2/-. Each holderof equity shares is entitled to one vote per share held.The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directorsis subject to the approval of the shareholders in the ensuing annual general meeting.Dividend, if approved, is payable to the shareholders in proportion to their shareholding. In the event of liquidationof the Company, the holders of equity shares will be entitled to receive any of the remaining assets of thecompany. The distribution will be in proportion to the number of equity shares held by the shareholders.The Company has not declared dividend during the year. As at 31-03-2014 As at 31-03-2013of Sharesof SharesBalance as at the beginning of the year117,766,850235,533,700117,766,850235,533,700Add: Shares issued during the year----Balance as at the end of the year117,766,850235,533,700117,766,850235,533,700c) Details of Shareholder holding more than 5% of the aggregate shares in the companyAs at 31-03-2014 As at 31-03-2013Name of the ShareholderNumber of% ofNumber of% ofIBC Knowledge Park Private Limited 10.86% Bank of India 11,291,7239.59% 11,291,7239.59% Annual Report 2013 - 2014Cranes Software International Limited (a)Securities Premium Account1,789,826,374 Add: Receipts during the year--Closing balanceA1,789,826,374 (b)FCCB Premium Redemption Reserve240,000,000 Add: Transfer during the year--Closing balanceB240,000,000 (c)General Reserve1,843,000,000 Add: Transfer during the year--Closing balanceC1,843,000,000 (d)Balance in profit and loss account(3,777,805,602) (999,771,510)(2,535,725,582)Closing balanceD(4,777,577,112)(3,777,805,602)TOTAL(904,750,738)95,020,772Term loans from Jammu and Kashmir Bank Limited107,929,698274,413,51939,965,13234,805,048TOTAL147,894,830309,218,567Term loans from Jammu and Kashmir Bank Limited is secured by hypothecation of current and fixed assets ofthe Company; Pledge of shares of wholly owned Subsidiary Systat Software Inc; Pari passu charge on propertyRate of Interest is Base rate + 2.25%, which varies between 10.25% to 10.50% during the year. The loan wasstarting from October 2011.1,160,082 6,082,9727,056,134TOTAL7,243,054 PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees)RESERVES AND SURPLUS PARTICULARSAs at 31-03-2014As at 31-03-2013 PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees)(Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited 3.05SHORT TERM BORROWINGS-UNSECURED87,671,90820,273,767TOTAL87,671,90820,273,767TRADE PAYABLES- Dues to micro, small and medium enterprises--767,274,528530,739,896TOTAL767,274,528530,739,8963.07OTHER CURRENT LIABILITIES137,600,000137,600,0005,138,5504,650,3453,468,213,0002,920,680,000(Refer Note No. 3.38)- Term Loans from Banks2,229,578,6392,067,304,284379,795,663325,857,920553,565,580476,837,453410,476,309352,720,182State Bank of India-367,664,592322,852,072527,726,643475,031,440482,412,635425,736,768623,871907,176Amounts due and payable to investor education and protection fund96,64696,646Statutory dues (Including provident fund, withholding and other taxes)51,917,310103,384,920(Refer Note No. 3.28)389,750,362385,482,202142,346,179167,724,28314,042,59316,299,8873,621,47110,730,572Unpaid dividend on equity shares-27,388,28127,388,2812,144,983,7461,634,084,045250,000,000-TOTAL11,586,942,07010,915,052,881PARTICULARSAs at 31-03-2014As at 31-03-2013 PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees)(Amount in Rupees)PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited Terms Loans from BanksBank of IndiaFrom 2009 to Till Date1,400,000,000829,578,6392,229,578,639ankFrom 2009 250,000,000129,795,663379,795,663Canara BankFrom 2009 to Till Date250,000,000303,565,580553,565,580Industrial Development Bank of IndiaFrom 2009 to Till Date220,000,000190,476,309410,476,309State Bank of MysoreFrom 2009 to Till Date250,000,000117,664,592367,664,592Bank of IndiaFrom 2009 to Till Date300,000,000227,726,643527,726,643State Bank of TravancoreFrom 2009 to Till Date300,000,000182,412,635482,412,6353.08SHORT TERM PROVISIONS256,213256,444134,411102,91944,733,65222,350,005TOTAL45,124,27622,709,368PARTICULARS (Amount in Rupees) PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) PrincipalT Annual Report 2013 - 2014Cranes Software International Limited Tangible AssetsLand & Building94,712,158--94,712,1582,565,54080,396-2,645,93692,066,22392,146,618Furniture & Fixtures66,938,3584,835,674-71,774,03234,101,3364,412,768-38,514,10433,259,92832,837,022123,750,353758,895-124,509,248111,075,1954,142,343-115,217,5389,291,71012,675,15864,387,7181,095,4681,578,29563,904,89220,432,7063,094,375352,04623,175,03540,729,85743,955,012Vehicle19,148,149--19,148,14913,129,2451,690,813-14,820,0584,328,0916,018,904Technical Books101,079--101,07944,2124,801-49,01452,06556,867 Total A369,037,8156,690,0371,578,295374,149,558181,348,23413,425,496352,046194,421,684179,727,874187,689,Intangible Assets596,500,000--596,500,000----596,500,000596,500,0004,546,448,001448,864,013-4,995,312,0144,179,949,145290,516,335-4,470,465,480524,846,534366,498,856 Total B5,142,948,001448,864,013-5,591,812,0144,179,949,145290,516,335-4,470,465,4801,121,346,534962,998,8 Total (A + B)5,511,985,816455,554,0501,578,2955,965,961,5724,361,297,379303,941,831352,0464,664,887,1631,301,074,408Previous Year5,302,385,236460,580-5,302,845,8163,937,546,208423,751,171-4,361,297,379941,548,4371,364,839,028 3.09FIXED ASSETS Total as onUpto April 1, 2013Total upto Annual Report 2013 - 2014Cranes Software International Limited Long-Term : Trade Investment (Unquoted - at cost)185,117,768185,117,7683,800,000 1,447,500 4,430,582 Cranes Software Inc (erstwhile NISA Software Inc)450,072,825 (Previous year 26,91,885 Equity shares of USD 1 each fully paid up)Tilak Auto Tech Private Limited5,162,487 (Previous Year - 1,00,000 Equity shares of Rs.10/- each fully paid up)63,000,000 (Previous Year - 20,000 Equity shares of Rs.10/- each fully paid up)36,233,187 1,20,000 Equity Shares of Rs. 10/- each fully paid up(Previous Year - 1,20,000 Equity shares of Rs.10/- each fully paid up)31,889,280 (Previous Year - 4,840 Equity shares of Rs.100/- each fully paid up)17,977,989 (Previous Year - 8,942 Equity shares of Rs.10/- each fully paid up)1,786,172 1,786,172(Previous Year 147 Equity shares of UAETOTAL800,917,790 PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited 3.11DEFERRED TAX ASSETS (NET)Deferred Tax Asset Attributable to :1,020,759,6001,180,245,7002,942,9002,612,4001,479,779,300266,231,500Deferred Tax Liability Attributable to :Difference between book and tax depreciation(247,492,400)(124,112,700)TOTAL2,255,989,4001,324,976,900LONG TERM LOANS AND ADVANCESEarnest money deposits4,113,1284,411,940Other deposits432,030529,4741,945,264,1151,734,798,9782,395,067,6732,361,083,442TOTAL4,346,209,2964,109,401,8465,010,5007,727,734TOTAL5,010,5007,727,734TRADE RECEIVABLES 666,174,128535,343,4523,221,261,6123,225,023,368(3,117,360,000)(2,130,000,000)(A)770,075,7401,630,366,820 20,857,35158,863,52913,260,61750,437,129(B)34,117,968109,300,658TOTAL (A + B)804,193,7081,739,667,478 PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited 3.15CASH AND BANK BALANCES85,21232,802Balances with bank held as margin10,603,53310,060,753725,251955,856TOTAL11,756,89012,707,575SHORT TERM LOANS AND ADVANCES136,231114,10510,918,7787,894,855Other current assets-MAT Credit Entitlement163,500,000163,500,00027,348,31414,992,086TOTAL201,903,323237,195,706REVENUE FROM OPERATIONS24,774,61536,414,61298,447,948124,831,93174,102,98653,732,684TOTAL197,325,549214,979,2278,602,3721,977,24663,391,6739,651,858(c) Exchange fluctuation gain-1,590333,624(e) Excess provision for leave encashment reversed-1,485,211 Provision for gratuity written back to the extent no longer required973,393-TOTAL72,969,028177,437,177 PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited 5,010,5007,727,7347,727,73412,203,6712,717,2344,475,93774,801,43485,419,110uneration6,595,0682,400,0001,270,5561,559,226657,432994,390152,737-Gratuity-TOTAL83,477,22797,685,30436,646,94462,781,663910,445,585834,818,782Interest on statutory dues-TOTAL947,092,529902,110,438DEPRECIATION AND AMORTIZATION EXPENSES13,425,49615,559,926290,516,335408,191,245TOTAL303,941,831423,751,171 PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited 600,000600,00039,30023,4753,803,2604,738,147Rent1,227,8506,426,88853,670122,3581,236,5642,015,382235,831235,8021,143,560,0001,480,000,0001,568,07522,765,175Bad debts-3,718,36411,034,7442,414,4483,120,774327,791,107-3,510,6672,684,20221,649,4337,872,241TOTAL1,511,554,5331,568,126,1983.24EPrior period expenses(2,057,767)(7113,003,666-93,752-TOTAL11,039,651(71250,000,000-435,493,289-TOTAL685,493,289- PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited PARTICULARSCurrent YearPrevious Year UNDISPUTED STATUTORY DUES REMAINING UNPAID AS AT MARCH 31, 2014Name of the StatuteNature of dues Total Liability as at31-03-201431-03-20133,189,9327,508,164Commercial Taxes ActProfessional Tax21,5502,380,630Employees State Insurance ActESI339,617280,184Income Tax ActWithholding Taxes25,662,83977,026,822Service Tax ActService Tax15,614,91710,360,015Karnataka State Commercial Taxes ActSales Tax/Value Added Tax6,863,7255,539,000Income Tax ActSelf Assessment Tax69,696,28469,696,284Wealth Tax ActWealth Tax88,00088,000Income Tax ActDividend Distribution Tax27,388,28127,388,281Income Tax ActFringe Benefit Tax41,30441,30496,64696,646 For the Year March 31, 2014 For the Year March 31, 2013BeforeAfterBeforeAfterExtraordinaryExtraordinaryExtraordinaryExtraordinaryItemsItemsItemsItems(1,685,264,798)(999,771,510)(2,535,725,582)(2,535,725,582)shares outstanding117,766,850117,766,850117,766,850117,766,850Basic EPS(14.31)(8.49)(21.53)(21.53)(1,685,264,798)(999,771,510)(2,535,725,582)(2,535,725,582)(1,685,264,798)(999,771,510)(2,535,725,582)(2,535,725,582)shares outstanding for diluted EPS117,766,850117,766,850117,766,850117,766,850(14.31)(8.49)(21.53)(21.53)2.002.002.002.001,000,667,009245,972,000138,647,86875,602,76210,603,53310,014,9605,515,0005,515,000TOTAL1,155,433,410337,104,722 Annual Report 2013 - 2014Cranes Software International Limited CASES FILED AGAINST THE COMPANY FOR RECOVERY OF DUES AND PENDINGFOR DISPOSAL BEFORE VARIOUS COURTSName of InstitutionAmount of ClaimIn which ForumA.Under Section 434 of Companies Act, 19561. Bank of New York (Trustee of Foreign Currency Convertible Bondholders)B.Under Section 138 of NegotiableInstruments Act, 1881250,000,000BangaloreC.Under Debt Recovery Act, 1993321,230,671Tribunal 76,406,981101,535,009170,300,017172,989,90640,2447,800,208169,746,361141,146,658146,457239,238TRADE RECEIVABLES INCLUDE, DUES FROM SUBSIDIARY COMPANIES AS UNDER13,195,3716,582,985672,501,055577,487,367Systat Software GmbH,-1,335,0521,273,440TOTAL687,031,478594,206,981 } PARTICULARSCurrent YearPrevious Year (Amount in Rupees) PARTICULARSCurrent YearPrevious Year (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited Principal amount due to suppliers registered under theNilNilInterest due to suppliers registered under the MSMEDNilNilPrincipal amounts paid to suppliers registered underNilNilInterest paid,other than under Section 16 of MSMEDNilNilInterest paid, under Section 16 of MSMED Act, toNilNilInterest due and payable towards suppliers registeredNilNilFurther interest remaining due and payable forNilNil3.34IMPcrores written off by a subsidiary.DERIVATIVE INSTRUMENTS AND UNHEDGED FOREIGN CURRENCY INSTRUMENTSamounts to Rs.7,29,21,81,042/- ( Previous Year : Rs. 6,94,46,67,707/- ) PARTICULARSCurrent YearPrevious Year (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited Current YearPrevious YearReceivablesUS 32,221,41546,899,503Euro13,449,86913,738,68983,3858,151295,338185,083633,796633,796PayablesUS DollarsEuro50,147,15848,121,064Sterling Pound-42,76858,120Singapore Dollar1,2361,236recognised @ Rsrecognised @ Rs60.1054.39Euro82.5869.5499.8582.32AED16.2714.79AUD55.2656.62SGD47.4543.813.38FOREIGN CURRENCY CONVERTIBLE BONDSThe Foreign Currency Convertible Bonds carry coupon rate of 2.50%, payable half yearly. In case of defaultof payment of interest the coupon rate stands increased to 4.80%.During March 2011, the convertible foreign currency bonds had become due for conversion to EquityShares and none of the bond holders have exercised their option for conversion. Correspondingly, theamounts had become due for payment as on the closure of such exercise and is yet to be redeemed as Particulars of unhedged foreign currency exposure as at the reporting date. Annual Report 2013 - 2014Cranes Software International Limited LOANS AND ADVANCES INCLUDES, DUES FROM COMPANIES UNDER THE SAME MANAGEMENT, AS UNDER(Amount in Rupees)Maximum AmountMaximum AmountCurrent Yearoutstanding duringPrevious Yearoutstanding duringthe yearthe previous year93,885,67493,885,67482,471,03486,224,143280,030,686292,517,912234,334,552303,023,843Tilak Auto Tech Pvt. Ltd20,219,04120,219,04120,189,04120,189,041833,897,8421,056,577,179679,876,618923,651,876561,123,676725,603,099632,600,766638,436,91862,449,23662,449,2364,141,21816,888,24423,653,17823,653,17823,478,50023,840,8242,201,84214,547,4647,463,44914,323,7987,512,1137,512,113--Cubeware GmbH60,290,828100,717,54150,243,80050,999,024 TOTAL1,945,264,1162,397,682,4371,734,798,9782,077,577,711 Annual Report 2013 - 2014Cranes Software International Limited 3.40DETAILS OF AUDITORS REMUNERATIONPARTICULARSCurrent YearPrevious Year600,000600,00039,30023,475TOTAL639,300623,4753.41GRATUITY & LEAVE ENCASHMENT Current Year Previous Yearabsenceabsence(I)Change in Benefit Obligations:7,312,5785,550,976Interest Cost585,006471,833(2,280,738)20,717,538Benefits (paid / Reversals)-(20,061,116)6,339,1851,294,4937,312,5781,141,756(II)Change in Plan Assets:6,023,4466,092,861Expected return on Plan Assets-Employer's contributions-Benefit paid-(20,061,116)Actuarial (gain) / loss on Plan Assets-6,023,446-6,023,446-(1,294,493)(1,289,132)(1,141,756)(III)722,339633,347585,006471,833Expected return on Plan Assets-in the year-1,307,34521,003,391Actual Return on Plan Assets-(IV)Category of Insurer Managed Funds-Total-(v)Assumptions used in accounting for the9.35%9.35%8.00%8.00%4.00%4.00%4.00%4.00%Expected rate of return on Plan Assets--8.70%8.50% Annual Report 2013 - 2014Cranes Software International Limited OBLIGATIONS TOWARDS LONG TERM, NON-CANCELLABLE OPERATING LEASESThe Company has taken various offices, vehicles, computers, furniture and equipment under cancellableoperating leases. These lease agreements are normally renewed on expiry.yearRs. 1,01,820/-Lease rentals due for the period 1 to 5 yearsNilLease rentals due for the period exceeding 5 yearsNil Annual Report 2013 - 2014Cranes Software International Limited RELATED PARTY DISCLOSURES AS ASCERTAINED BY THE MANAGEMENTDescription of theDescription ofFor the YearFor the YearMarch 31, 2014March 31, 2013Sale of goodsDirect SubsidiarySystat Software Inc44,619,33744,087,370Direct SubsidiarySystat Software GmbH17,664,53715,897,582Direct SubsidiaryCranes Software International Pte Ltd-Direct SubsidiaryProland Software Pvt. Ltd.61,612-Indirect SubsidiarySystat Software UK Ltd.10,464,3209,421,23072,809,80669,527,962Purchase of goodsIndirect SubsidiaryEngineering Technology Associates Inc-Direct SubsidiaryCaravel Info Systems Pvt. Ltd.--2,177,192Receiving of servicesDirect SubsidiarySystat Software Inc--21,731,7722,400,0002,400,0002,097,534-2,097,534-6,595,0682,400,000Loans givenDirect Subsidiary18,233,49338,868,516Direct SubsidiaryCranes Software Inc22,035,780-Direct SubsidiaryCranes Software International Pte Ltd3,657,9929,921,583Direct SubsidiaryEsqube Communication 174,678-Direct SubsidiaryCaravel Info Systems Pvt Ltd-Direct SubsidiaryProland Software Pvt. Ltd.58,308,018-102,409,96152,054,911 Annual Report 2013 - 2014Cranes Software International Limited Trade ReceivablesDirect SubsidiarySystat Software Inc672,501,055577,487,367Direct SubsidiarySystat Software GmbH-Direct SubsidiaryProland Software Pvt Ltd1,335,0521,273,440Indirect SubsidiaryDunn Solutions Group Inc13,195,3716,582,985687,031,478594,206,981Payable at the year endDirect SubsidiaryAnalytix Indirect SubsidiaryDunn Solutions Groups Inc4,808,0004,351,200Indirect SubsidiaryEngineering Technology Associates Inc449,849407,109Direct SubsidiaryCaravel Info Systems Pvt Ltd2,461,7502,461,750Indirect SubsidiarySystat Software UK Ltd-Indirect SubsidiaryDunn Solutions India Pvt Ltd-Direct SubsidiarySystat Software 5,361,2155,391,215Key Management Personnel389,750,362385,482,202403,792,955401,782,088Receivable at the year endDirect SubsidiaryCaravel Info Systems Pvt Ltd2,201,8427,463,449Direct SubsidiaryCranes Software Inc280,030,686234,334,552Direct SubsidiaryCranes Software International Pte Ltd93,885,67482,471,034Esqube Communication Solutions Pvt. Ltd.23,653,17823,478,500Direct SubsidiaryProland Software Pvt Ltd62,449,2364,141,218Direct SubsidiarySystat Software GmbH833,897,842679,876,618Direct SubsidiarySystat Software Inc561,123,676632,600,766Direct SubsidiaryTilak Auto Tech Private Ltd.20,219,04120,189,041Cubeware GmbH60,290,82850,243,800Indirect SubsidiarySystat Software UK Ltd.7,512,113-1,945,204,1161,734,798,978Description of theDescription ofAs atAs atMarch 31, 2014March 31, 2013 Annual Report 2013 - 2014Cranes Software International Limited ariesOther related partyMr. Asif KhaderSystat Software Inc, USADunn Solutions Group Inc,Orca Infotech Private LimitedMr. Mukkaram JanSystat Software Asia Pacific LimitedEngineering Technology Associates Inc withK & J Holdings Private LimitedMr. Mueed KhaderCranes Software International Pte Ltd,.its subsidiary, Engineering TechnologyK & J Telecom Private LimitedAssociates (Shanghai) Inc, ChinaJansons Land & PropertySystat Software GmbH, GermanyCubeware GmbH and its subsidiaries inDevelopment Pvt LtdCranes Software IncAustria and SwitzerlandAnalytix Systems Private LimitedDunn Solutions India Pvt LtdKeysoft Solutions Private LimitedTilak Auto Tech Private LimitedSystat Software UK LtdSpice Capital Fund Private LimitedCaravel Info Systems Pvt LtdSea Equity Private LimitedEsqube Communication Solutions Pvt LtdSource Majeure Software Pvt Ltd Annual Report 2013 - 2014Cranes Software International Limited Primary Segments-a) ExportsSecondary Segments-a) Proprietary Products and ServicesPRIMARY SEGMENT INFORMATION - GEOGRAPHICAL SEGMENTCurrent YearPrevious YearNo.ExportDomesticTotalExportDomesticTotal1Segment Revenue76,406,981120,918,568197,325,549101,535,009113,444,217214,979,2262Segment Results(556,993,142)(1,183,610,427)(1,740,603,569)(488,903,456)(1,430,754,338)(1,919,657,794)72,969,028177,437,177Operating Profit (loss)(1,667,634,541)(1,742,220,617)947,092,529902,110,438Profit (loss) before tax(1,918,194,131)(2,645,042,526)Tax Expenses918,422,621109,316,944(999,771,510)(2,535,725,582)3Segments Assets8,979,686,2422,993,247,38611,972,933,6299,102,468,7713,034,175,15112,136,643,922Total Assets11,972,933,62912,136,643,922Segment liabilities8,803,036,2432,934,363,68611,737,399,9298,925,818,7712,975,291,45111,901,110,222Total Liabilities11,737,399,92911,901,110,222176,650,00058,883,700235,533,700176,650,00058,883,700235,533,7004Capital Expenditure176,390,528279,163,522455,554,050182,574278,006460,5805Depreciation117,686,277186,255,554303,941,831199,120,675224,630,496423,751,171SECONDARY SEGMENT INFORMATION - BUSINESS SEGMENTCurrent YearPrevious YearSl. ParticularsProprietaryProductProprietaryProductNo.products andAlliancesproducts andAlliancesservicesservices1Segment Revenue155,007,39242,318,157157,767,79057,211,4362Segment Result(1,721,683,209)(18,920,361)(1,898,387,313)(21,270,481)3Segment Assets10,776,837,5591,196,096,07010,924,193,1941,212,450,7284Capital Expenditure238,758,89165,182,939336,223124,357 (Amount in Rupees)(Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited Asif KhaderMueed KhaderP. PhaneendraManaging DirectorDirectorCompany SecretaryBengaluruBengaluruMay 29, 2014May 29, 2014 A Sum of Rs. 98.73 Crore has been provided in the books of accounts as provision for bad and doubtfulPrevious year's figures have been regrouped and reclassified wherever necessary to make them comparable. Annual Report 2013 - 2014Cranes Software International Limited THIS PAGE IS LEFT BLANKINTENTIONALLY Annual Report 2013 - 2014Cranes Software International Limited CRANES SOFTWARE INTERNATIONAL CONSOLIDATED FINANCIAL STATEMENTS Annual Report 2013 - 2014Cranes Software International Limited INDEPENDENT AUDITORS' REPORT ON CONSOLIDATED FINANCIALSTATEMENTSTo,1.We have examined the attached Consolidated Balance Sheet of M/s. Cranes Software International Limited, March 2014, and Consolidated Statement of Profit2.Management is responsible for the preparation of these consolidated financial statements that give a truesection 211 of the Companies Act, 1956 (“the Act”) read with the General Circular 15/2013 datedare free from material misstatement, whether due to fraud or error.3.Our responsibility is to express an opinion on these consolidated financial statements based on our audit.4.An audit involes performing procedures to obtain audit evidence about the amounts and disclosures in thefraud or error. In making those risk assessments, the auditor considers internal control relevant to the5.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our6.We would like to opine as follows :1.Our audit report has to be read along with the observations and qualifications as appearing in2.Consolidated accounts of the Company includes, “unaudited financials of Cranes Software7.We did not audit the financial statements of Subsidiary Companies, whose financial statements reflect totalassets of Rs. 43,011.30 Lakhs as at March 31, 2014 and total revenues (including other income) of Annual Report 2013 - 2014Cranes Software International Limited 8.In our opinion and to the best of our information and according to the explanations given to us, subject toa)in the case of the Consolidated Balance sheet, of the state of affairs of the Company as atb)in the case of the Consolidated Statement of Profit and Loss, of the loss for the year ended on thatc)in the case of the Consolidated Cash Flow Statement, of the cash flows for the year ended on that dateFor S.JANARDHAN & ASSOCIATESBangalorePartnerMay 29, 2014Membership No.201862 Annual Report 2013 - 2014Cranes Software International Limited CONSOLIDATED BALANCE SHEETAS AT MARCH 31, 2014(Amount in Rupees)PARTICULARSMarch 31, 2014March 31, 2013IEQUITY AND LIABILITIES(1)Shareholders' Funds(a)Share capital3.01235,533,700235,533,700(b)Reserves and surplus3.02(1,303,108,138)(86,383,221)(2)Non-Current Liabilities(a)Long-term borrowings3.03294,725,701418,191,298(b)Long-term provisions3.049,054,5449,923,424(3)Current Liabilities(a)Short-term borrowings3.05147,771,90892,068,567(b)Trade payables3.06796,347,473637,595,311(c)Other current liabilities3.0711,861,926,17111,463,166,831(d)Short-term provisions3.0845,124,27622,709,368TOTAL12,087,375,63512,792,805,278II.ASSETS(1)Non-Current Assets(a)Fixed assets(i)Tangible assets3.09202,194,328208,158,2923,377,688,5373,281,875,021(iii)Intangible assets under development2,769,067,9453,218,648,039Capital work in progress-(b)Non-current investments3.101,786,1721,786,172(c)Deferred tax assets (net)3.112,510,547,3761,503,849,667(d)Long term loans and advances3.122,420,813,3562,442,221,010(2)Current Assets(a)Inventories3.1323,383,62919,591,905(b)Trade receivables3.14389,202,4071,708,567,921(c)Cash and bank balances3.1588,133,858104,112,458(d)Short-term loans and advances3.16304,558,027300,566,293TOTAL12,087,375,63512,792,805,278Significant accounting policies and notes to the accounts2 & 3Asif KhaderMueed KhaderP. PhaneendraManaging DirectorDirectorCompany SecretaryBengaluruBengaluruMay 29, 2014May 29, 2014 Annual Report 2013 - 2014Cranes Software International Limited CONSOLIDATED STATEMENT OF PROFIT AND LOSSFOR THE YEAR ENDED Note No.March 31, 2014March 31, 20133.173,392,300,4743,099,689,3173.18104,289,828208,673,644Total Revenue3,496,590,3023,308,362,961 Cost of materials consumed--1,619,533,0491,467,590,7653.192,717,23428,043,4533.201,069,055,681986,092,2273.21966,727,939931,396,0153.22437,957,493542,177,5543.232,102,625,8662,111,179,945Total Expenses6,198,617,2626,066,479,959(2,702,026,960)(2,758,116,998)Exceptional items3.248,829,008(71(2,693,197,952)(2,758,828,470)3.25685,493,289-(2,007,704,663)(2,758,828,470)Tax expense:2,013,871(18,711,061)988,591,440194,336,555(3)Income tax for earlier year(12,589,879)(35,512,130)(1,029,689,231)(2,618,715,106)Less: Share of minority interests-(1,029,689,231)(2,618,653,966) net of tax expense(14.56)(22.24)(8.74)(22.24)Significant accounting policies and notes to the accounts2 & 3Chartered AccountantsAsif KhaderMueed KhaderP. PhaneendraManaging DirectorDirectorCompany SecretaryBengaluruBengaluruMay 29, 2014May 29, 2014 Annual Report 2013 - 2014Cranes Software International Limited PARTICULARSPrevious YearNet profit / (loss) before taxation and extraodinary items(2,693,197,952)(2,794,070,426)139,738,60961,724,459Depreciation and amortization437,957,493542,177,554Profit / (loss) on sale of investments / assets93,752-966,727,939931,396,015987,300,000-(3,685,840)-(165,065,999)(1,258,772,398)Inventory(3,791,724)28,457,940Trade receivables386,771,7391,196,635,204(3,991,734)13,610,851Other current assets--Current liabilities(380,249,634)(504,345,141)Cash generated from operations(166,327,351)(524,413,544)Direct taxes paid--Net cash from operations before extraordinary items(166,327,351)(524,413,544)519,165,938(524,413,544)Purchase of fixed assets / increase in work in progress 3,685,840-assets 1,320,000-(71,206,363)(139,679,764) (36,646,944) (91,958,427)Borrowings / repayments(447,830,006)476,453,20921,407,654211,128,659Unsecured loans --Net cash from financing activities(463,938,176)601,147,884(15,978,600)(62,945,423)Opening cash and cash equivalents104,112,458167,057,88188,133,858104,112,458 STATEMENT OF CASH FLOWSAS AT MARCH 31, 2014 Asif KhaderMueed KhaderP. PhaneendraManaging DirectorDirectorCompany SecretaryBengaluruBengaluruMay 29, 2014May 29, 2014 Annual Report 2013 - 2014Cranes Software International Limited 1.BACKGROUNDCranes Software International Limited (CSIL) was incorporated on 22nd December, 1984. CSIL is asolutions across the globe. Presently, CSIL has developed IP’s and products in data Integration &quartered in Bangalore and has offices in India, United States of America, United Kingdom, Germany and2.SIGNIFICANT ACCOUNTING POLICIES2.1Basis of preparation of financial statementsmanagement to make estimates & assumptions that affect the reported balance of assets & liabilities anddifferences if any between the actual results and estimates are recognized in the period in which theSchedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparationand presentation of its financial statements. The adoption of revised Schedule VI does not impact recognitionand measurement principles followed by the Company for preparation of financial statements. However, itcurrent year.All the assets and liabilities have been classified as current or non-current as per Company’s normal2.2Principles of consolidationreporting date as of the Company.i.The consolidated financial statements have been prepared using uniform accounting policies for likeii.The consolidation of the financial statements of the holding company and its subsidiaries is done toiii.The excess of cost Alternatively, where the share of equity in the subsidiary companies as on the date of investment isin excess of cost of investment of the Company, it is recognized as ‘Capital Reserve’ and showniv.The accounts of foreign subsidiaries are classified as non-integral foreign operations and are translated Annual Report 2013 - 2014Cranes Software International Limited v.Minority interest in subsidiaries represents the minority shareholders proportionate share of the net2.3Use of estimatesfor bad and doubtful debts. Any revision to accounting estimates is recognized prospectively.2.4Revenue recognition(i)Revenue from sale of products is recognized, in accordance with the sales contract, on delivery ofgoods to the customer. Revenue from product sales are shown net of taxes.(iii)Revenue from technical service, training, support and other services is recognized as the related(iv)Dividend 2.5Cash flow statementof the Company are shown separately.2.6Fixed assets and capital work-in-progress(i)Fixed assets are stated at historical cost less accumulated depreciation. Cost includes all expenses2.7Intangible assets(i)All intangible assets are stated at cost less accumulated amortization.(iii)Internally generated intangible assets are valued at cost which were incurred during the developmentto the date the intangible asset is ready for its intended use, is capitalized in accordance with Accounting(v)Amount paid towards the acquisition of intangible assets, which is not put to use as at reporting date Annual Report 2013 - 2014Cranes Software International Limited 2.8Research and development2.9Depreciation and amortization(i)Depreciation has been provided on straight line method at the rates prescribed under Schedule XIV ofthe Companies Act, 1956. In respect of assets purchased / sold during the year, depreciation is(iii)Depreciation on individual low cost assets (costing less than Rs.5,000) is provided for in full in the(iv)Other intangible assets are amortized over their respective individual estimated useful life on a straight(v)After recognition of impairment loss, the depreciation charge for the asset is on the revalued amountbelongs to is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The2.11InventoriesInventories of the company comprises of third party software products. Such software products are valuedat cost or net realizable value, whichever is lower. The cost formula used is weighted average basis. Netcompletion and estimated cost necessary to make the sale. The cost of inventories is net of VAT credit.2.12Investments(i)Investments are either classified as current or non-current based on the management’s intention atthe time of purchase.(ii)Non- current investments are stated at cost less provision for diminution in the value of such investments.(iii)Current investments are carried at the lower of cost or fair value. Any reduction in carrying amount(i)Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction.(iii)Exchange differences arising on foreign currency transactions are recognized as income or expense Annual Report 2013 - 2014Cranes Software International Limited (v)Non – monetary assets & liabilities are translated at the rate prevailing on the date of transaction.(vii)For expenses are translated at the average exchange rate for the period. Resulting exchange ratedifference is accumulated in ‘Foreign currency translation reserve’ as a separate component ofshareholder’s funds’, until the disposal of “Net investment in non-integral foreign operation”.(i)Post-employment benefit plansand losses are recognized in full in the statement of profit and loss for the period in which they occur.vested. The retirement benefit obligation recognized in the balance sheet represents the present(ii)Short-term employee benefits(iii)Long-term employee benefits2.15Income Tax/ Deferred Tax(i)Current tax is calculated in accordance with the relevant tax regulations.timing differences that result between the profit offered for income taxes and the profit as per thefinancial statements. Deferred tax in respect of timing difference which originate during the taxdifference originate. For this purpose the timing difference which originates first is considered tohave been enacted or substantively enacted by the balance sheet date. The effect on deferred taxyear of charge. Deferred tax assets on timing differences are recognized only if there is a reasonablecertainty that sufficient future taxable income will be available against which such deferred taxassets can be realized. Deferred tax assets are reassessed for the appropriateness of their respective(iii)Minimum alternative tax (MAT) paid in accordance to the tax laws, which gives rise to future economicbenefits in the form of adjustment of future income tax liability, is considered as an asset if there is Annual Report 2013 - 2014Cranes Software International Limited Accordingly, MAT is recognized as an asset in the balance sheet when it is probable that the futureeconomic benefit associated with it will flow to the Company and the asset can be measured reliably.(v)The Company offsets deferred tax assets and deferred tax liabilities relating to taxes on incomeobligation that may, but probably will not, require an outflow of resources. Where there is a possible(i)Basic earnings per share is calculated by dividing the net earnings available to the equity shareholdersby the weighted average number of equity shares outstanding during the year.Diluted earnings per share is calculated by dividing the net earnings available to existing and potential2.18Leases(i)Lease arrangements where substantial risk and rewards incidental to ownership vests with thelessor, such leases are recognized as operating leases.(ii)Lease The use of hedging instruments is governed by the Company’s policies approved by the board of directors,which provide written principles on the use of such financial derivatives consistent with the Company’srisk management strategy.dates. Changes in the fair value of these derivatives that are designated and effective as hedges of futurecash flows are recognized directly in shareholders’ funds and the ineffective portion is recognizedtransaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or lossHowever, the company has no outstanding hedged transaction nor entered into any hedging transactionduring the year. Annual Report 2013 - 2014Cranes Software International Limited 3.CONSOLIDATED NOTES ON ACCOUNTSSHARE CAPITALAs at 31-03-2014As at 31-03-2013165,000,000 (Previous Year 165,000,000) Equity Shares of Rs. 2/- each330,000,000 2,00,000 (Previous Year 2,00,000) Preference shares of Rs.100/ each20,000,000 ISSUED, SUBSCRIBED AND FULLY PAID-UP117,766,850 (Previous year 1235,533,700 TOTAL235,533,700 The Company has only one class of shares referred to as equity shares having a par value of Rs. 2/-. Each holderof equity shares is entitled to one vote per share held.The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directorsis subject to the approval of the shareholders in the ensuing annual general meeting.Dividend, if approved, is payable to the shareholders in proportion to their shareholding. In the event of liquidationof the Company, the holders of equity shares will be entitled to receive any of the remaining assets of thecompany. The distribution will be in proportion to the number of equity shares held by the shareholders.The Company has not declared dividend during the year.As at 31-03-2014 As at 31-03-2013NumberAmountNumberAmountof Sharesin Rupeesof Sharesin RupeesBalance as at the beginning of the year117,766,850235,533,700117,766,850235,533,700Add: Shares issued during the year----Balance as at the end of the year117,766,850235,533,700117,766,850235,533,700c) Details of Shareholder holding more than 5% of the aggregate shares in the company As at 31-03-2014 As at 31-03-2013Name of the ShareholderNumber of% ofNumber of% ofIBC Knowledge Park Private Limited 10.86% Bank of India11,291,7239.59%11,291,7239.59% (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited (a)Securities Premium Account1,789,826,374 Add: Receipts during the year--A1,789,826,3741,789,826,374(b)FCCB Premium Redemption Reserve240,000,000240,000,000Add: Transfer during the year--B240,000,000 (c)General Reserve1,843,000,000 Add: Transfer during the year--C1,843,000,000 1,843,000,000(d)Foreign Currency Translation ReserveD28,543,210215,578,896(e)Balance in profit and loss account(4,174,788,491)(1,556,134,527)(1,029,689,231) E(5,204,477,722)(4,174,788,491)TOTAL(1,303,108,138)(86,383,221)Term Loans from Jammu and Kashmir Bank Limited107,929,698274,413,519Foreign Currency Term Loan from UPS Capital186,796,003143,777,779TOTAL294,725,701418,191,298Term loans from Jammu and Kashmir Bank Limited is secured by hypothecation of current and fixed assets ofRate of Interest is Base rate + 2.25%, which varies between 10.25% to 10.75% during the year. The loan wasfrom October 2011.7,430,5398,422,4291,624,0051,500,995TOTAL9,054,5449,923,424PARTICULARSAs at 31-03-2014As at 31-03-2013 PARTICULARSAs at 31-03-2014As at 31-03-2013 PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited 3.05SHORT-TERM BORROWINGS60,100,00062,548,50087,671,90829,520,067TOTAL147,771,90892,068,567secured by general assets of the Company.TRADE PAYABLES- dues to micro, small and medium enterprises--796,347,473637,595,311TOTAL796,347,473637,595,3113.07OT3,610,951,5503,062,930,3454,951,220,0615,482,471,154623,871907,17696,64696,64691,098,436194,565,640389,750,362385,482,202144,913,124228,343,2914,017,18811,708,587Unpaid dividend on Equity Shares-27,388,28127,388,2812,391,866,6522,045,720,139250,000,000-TOTAL11,861,926,17111,463,166,831256,213256,444134,411102,91944,733,65222,350,005TOTAL45,124,27622,709,368PARTICULARSAs at 31-03-2014As at 31-03-2013 PARTICULARSAs at 31-03-2014As at 31-03-2013 PARTICULARSAs at 31-03-2014As at 31-03-2013 PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited Tangible Assets94,712,158---94,712,1582,565,54080,396--2,645,93692,066,22392,146,61883,971,3268,601,315-1,766,31590,806,32649,434,2325,584,221-1,766,31553,252,13837,554,18934,537,095180,566,911758,895--181,325,806160,004,6124,149,634--164,154,24617,171,56020,562,29992,559,7287,793,099-1,578,29598,774,53238,157,65710,169,567-359,27747,967,94750,806,58554,402,07121,502,098---21,502,09814,991,8891,914,438--16,906,3274,595,7716,510,209 Total A473,312,22117,153,309-3,344,610487,120,921265,153,93021,898,256-2,125,592284,926,593202,194,328208,158,2921,893,176,153---1,893,176,153-----1,893,176,1531,893,176,1536,322,957,946511,872,752--6,834,830,6984,934,259,077416,059,237--5,350,318,3151,484,512,3841,388,698,869Total B8,216,134,099511,872,752--8,728,006,8514,934,259,077416,059,237--5,350,318,3153,377,688,5373,281,875,021 Total (A+B)8,689,446,320529,026,061-3,344,6109,215,127,7725,199,413,007437,957,493-2,125,5925,635,244,9083,579,882,8643,490,033,313Previous Year9,242,884,4858,985,894129,680,6841,855,1639,379,687,3774,690,809,838542,177,5541,181,1511,874,4245,502,294,1193,877,393,2584,282,074,643 FIXED ASSETS Depreciation / AmortisationNet BlockTotal as onTotal upto Annual Report 2013 - 2014Cranes Software International Limited 1,786,1721,786,172(Previous Year 147 Equity shares of UAE DirhamTOTAL1,786,1721,786,1723.11DEFERRED TAX ASSETS (NET)Deferred Tax Assets Attributable to :1,275,317,5761,355,696,6352,942,9002,612,4001,479,779,300266,231,500Deferred Tax Liability Attributable to :Difference between book and tax depreciation(247,492,400)(120,690,868)TOTAL2,510,547,3761,503,849,667LONG TERM LOANS AND ADVANCESEarnest money deposits4,553,1284,851,940Other deposits449,525546,969- Related party--2,414,298,3532,425,822,949TOTAL2,420,813,3562,442,221,01016,874,67119,591,9056,508,958-TOTAL23,383,62919,591,905PARTICULARSAs at 31-03-2014As at 31-03-2013 PARTICULARSAs at 31-03-2014As at 31-03-2013 PARTICULARSAs at 31-03-2014As at 31-03-2013 PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited TRADE RECEIVABLES From related party--3,476,865,0662,255,503,297(3,122,224,314)(656,236,033)(A)354,640,7521,599,267,264 From related party--34,561,655109,300,658(B)34,561,655109,300,658TOTAL (A + B)389,202,4071,708,567,9213.15CASH AND BANK BALANCES87,83650,64371,653,69890,698,9825,063,5402,346,22410,603,53310,060,753725,251955,856TOTAL88,133,858104,112,458SHORT TERM LOANS AND ADVANCES58,670,94657,541,16722,656,72915,748,522MAT Credit Entitlement163,500,000163,500,00027,348,31414,992,08631,518,51347,776,005TOTAL304,558,027300,566,293REVENUE FROM OPERATIONS46,873,95461,321,4201,675,354,7312,186,392,7271,670,071,789851,975,170TOTAL3,392,300,4743,099,689,317PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) PARTICULARSAs at 31-03-2014As at 31-03-2013 PARTICULARSAs at 31-03-2014As at 31-03-2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited 3,685,8405,361,141(b) Liabilities written back to the extent no longer required63,391,6749,680,201(c) Exchange fluctuation gain-36,238,92128,157,844(e) Excess provision for leave encashment reversed income-1,485,211(f) Excess provision for gratiuty reversed income973,393-TOTAL104,289,828208,673,64416,874,67119,591,90519,591,90547,635,3582,717,23428,043,4531,060,087,028969,447,721ation6,595,0682,400,0001,531,1375,905,433689,711152,737-Gratuity-TOTAL1,069,055,681986,092,22736,646,94491,958,427930,080,995834,927,595Interest on statutory dues-TOTAL966,727,939931,396,015DEPRECIATION AND AMORTIZATION EXPENSES21,898,25624,526,142416,059,237517,651,412TOTAL437,957,493542,177,554 PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited 1,676,0761,761,13639,30023,4753,803,26015,841,196Rent55,544,44885,063,644- Buildings-53,670211,68214,307,1832,946,784Insurance17,192,52918,103,8212,718,03232,342,526987,300,0001,480,000,00014,237,69631,538,30074,328,30474,804,2273,303,17979,96543,975,03747,359,30614,908,78715,579,94115,269,62938,196,441527,194,441266,664,206TOTAL2,102,625,8662,111,179,9453.24EXCEPTIONAL ITEMS(2,057,767)(7110,793,023-93,752-TOTAL8,829,008(711,472)- Principal writeback250,000,000-435,493,289-TOTAL685,493,289- PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) PARTICULARSFor the YearFor the YearMarch 31, 2014March 31, 2013 (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited 3.27PARTICULARS OF THE SUBSIDIARY COMPANIES CONSIDERED IN THE CONSOLIDATED FINANCIALSTATEMENTS AND THEIR REPORTING DATESCountry of% of votingReportingNo.incorporationpower helddate as ati.Systat Software Inc,. USAUSA100%31-Mar-14ii.Systat Software Asia Pacific LimitedIndia100%31-Mar-14Germany100%iv.Cranes Software International Pte. Ltd.Singapore100%v.Cranes Software Inc.,(Earlier known as NISA Software Inc)USA100%31-Mar-14vi.Analytix Systems Private LimitedIndia100%31-Mar-14India100%31-Mar-14Dunn Solutions Group Inc,.USAix.Caravel Info Systems Pvt LtdIndia100%31-Mar-14x.Proland Software Pvt LtdIndia100%31-Mar-14Engineering Technology Associates Inc. USAUSAWholly OwnedEngineering Technology Associates Inc.(Shangai)ChinaEngineering TechnologyIndia76%xiv.Cubeware GmbH, with its Wholly ownedsubsidiaries in Austria and Switzerlandsubsidiary of Systatxv.Dunn Solutions India Pvt. Ltd.IndiaWholly owned For the year 31.03.2014 For the year 31.03.2013BeforeAfterBeforeAfterExtraordinaryExtraordinaryExtraordinaryExtraordinaryItemsItemsItemsItems(1,715,182,520)(1,029,689,231)(2,618,653,966)(2,618,653,966)shares outstanding117,766,850117,766,850117,766,850117,766,850Basic EPS(14.56)(8.74)(22.24)(22.24)(1,715,182,520)(1,029,689,231)(2,618,653,966)(2,618,653,966)Adjusted net profit for the year(1,715,182,520)(1,029,689,231)(2,618,653,966)(2,618,653,966)shares outstanding for diluted EPS117,766,850117,766,850117,766,850117,766,850(14.56)(8.74)(22.24)(22.24)2.002.002.002.00 Annual Report 2013 - 2014Cranes Software International Limited RELATED PARTY DISCLOSURES AS ASCERTAINED BY THE MANAGEMENTParticularsKey ManagementOther RelatedPersonnelPartiesRemuneration PaidCurrent Year6,595,068-Previous Year2,400,000-Payable at the year endCurrent Year389,750,362-Previous Year385,482,202-NAME OF RELATED PARTIES AND DESCRIPTION OF RELATIONSHIPKey Management PersonnelMr.Asif KhaderMr.Mukkaram JanMr.Mueed KhaderOther Related partiesOrca Infotech Private LimitedK & J Telecom Private Limited 1,000,667,009245,972,000138,647,86875,602,76215,667,07312,361,1855,515,0005,515,000TOTAL1,160,496,950339,450,947PARTICULARSCurrent YearPrevious Year (Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited The Company has identified geographic segments as its primary segment and business segments as its secondary segments.Primary Segments-a) Exports and b) DomesticSecondary Segments-a) Proprietary Products and Services b) Product AlliancesPrimary Segment Information - Geographical SegmentCurrent YearPrevious YearNo.ExportDomesticTotalExportDomesticTotal1Segment Revenue3,245,277,175147,023,2993,392,300,4742,961,718,659137,970,6583,099,689,3172Segment Results(1,250,920,349)(1,839,588,849)(1,518,980,371)(2,036,817,571)104,289,828208,673,644(loss)(1,735,299,020)(1,828,143,927)966,727,939931,396,015tax(2,007,704,663)(2,758,828,470)Tax Expenses978,015,431140,113,364tax(1,029,689,231)(2,618,715,106)3Segments Assets9,065,517,6313,021,858,00412,087,375,6359,594,589,0413,198,216,23712,792,805,278Total Assets12,087,375,63512,792,805,2788,888,867,6312,962,974,30411,851,841,9359,417,939,0413,139,332,53812,557,271,578Total Liabilities11,851,841,93512,557,271,578176,650,00058,883,700235,533,700176,650,00058,883,700235,533,7004Capital Expenditure73,472,011455,554,050529,026,0615Depreciation134,015,663303,941,831437,957,493501,508,81640,668,738542,177,554Current YearPrevious YearSl.No. ParticularsServicesServices1Segment Revenue3,349,982,31842,318,1573,042,477,88157,211,4362Segment Result(1,816,593,988)(22,994,861)(1,972,199,797)(64,617,774)3Segment Assets11,936,283,440151,092,19512,556,138,380236,666,8984Capital Expenditure516,541,04612,485,015 Asif KhaderMueed KhaderP. PhaneendraManaging DirectorDirectorCompany SecretaryBengaluruBengaluruMay 29, 2014May 29, 2014 (Amount in Rupees)(Amount in Rupees) Annual Report 2013 - 2014Cranes Software International Limited Reporting Currency EURO USDINRSGDINR USDINRINRINRINRFinancial period ended 31.3.2014 31.3.2014 31.3.2014 31.3.201431.3.201431.3.201431.3.2014 31.3.2014 31.3.2014 31.3.2014a)No. of shares held 1 974,166 380,000 165,692 120,000 2,691,855 1,000 20,000 4,840 8,942b)Face value of per share25,0001101 101 100 1010010c)Extent of interest as at year end100%100%100%100%100%100%100%100%100%76%(losses) of the subsidiary for the currenta)dealt with or provided for in theaccounts of the holding company----------b)Not dealt with or provided for in theaccounts of the holding company( 1,129,025)(26,159)(161,219)(42,870)(40,791)(3,661,904) (409,630)Net aggregate Profits / (losses) for theprevious financial years of the Subsidiarya)dealt with or provided for in theaccounts of the holding company----------b)Not dealt with or provided for in the(1,919,403)(15,588)(53,424)4,210,772(282,103)(54,021) (32,136)(947,186)(254,748)STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT,1956 RELATING TO COMPANYS’ INTEREST INSUBSIDIARY COMPANIES: Engineering Technolgy Asif KhaderMueed KhaderDate : May 29, 2014Managing DirectorDirector Annual Report 2013 - 2014Cranes Software International Limited Book - PostIf undelivered please return to : Cranes Software International Limited # 2, Tavarekere, Bannerghatta Road, BTM Layout, 1st Stage, 1st Phase, Bangalore - 560 029 Karnataka, INDIAPhone: +91 80 4128 1111 Email: info@cranessoftware.comwww.cranessoftware.com