The company’s shares are set to be delisted from the NSE due to non-compliance of listing agreements
Bengaluru-based software products provider Cranes Software International Ltd has been repeatedly postponing its announcement of financial results for the past two quarters. This has caused consternation among institutional investors who suspect Cranes could go the way of dubious software companies like Satyam Computer, Silverline Industries, Pentamedia and Prithvi Infosolutions.
On 27 April 2010, the company sent a notice to the Bombay Stock Exchange (BSE) that it would publish the audited results for the year ended 31 March 2010 before 30 May 2010. But on 22 June 2010, the company told the BSE that it has not received audited results from its overseas subsidiaries and so its results have been delayed. Cranes has not published its year ended 31 March 2010 and its Q1 results yet. An email query sent to the BSE and the company did not elicit a response until the time of writing this article.
The company's shares will be suspended from trading on the National Stock Exchange (NSE) from 3 September 2010 due to non-compliance of listing agreements. The company failed to satisfactorily respond to the NSE.
Cranes reported Rs84.8 crore consolidated revenues in Q3 FY10. The company derived 94% of its revenues from its international operations while 6% was contributed by its domestic operations. Its domestic revenues stood at Rs4.96 crore while international revenues were at Rs79.89 crore. It reported a consolidated net loss of Rs1.43 crore and paid Rs15.13 crore as interest in the third quarter of FY10. The stock was trading at Rs11.35 at the time of writing.
Asif Khader, managing director, Cranes Software International, while announcing the company's results had said, "The last few quarters have been the most challenging for Cranes from an operational perspective. In particular, high debtor days as result of the global recession had squeezed cash flows and affected business from exports. To overcome these difficulties, the management has initiated direct sales from its subsidiaries, thus considerably increasing our subsidiary revenues and reducing the going forward collection period. On the domestic front, the company has lost significant revenue in the third-party business; the reason for this loss was because The MathWorks Inc, which is the parent company of MATLAB, decided to set up (its) own operations in India."
Cranes Software is supposed to be a specialised, high-end software company focused on statistical analytics and engineering simulation. Foreign investors hold 13.51%; promoters hold 14.52% and public shareholders hold 85.48% of the equity.
Great Eastern Shipping Company Ltd said its Singapore-based subsidiary Greatship Global Offshore Services Pte Ltd has taken delivery of 'Greatship Ramya', a platform/ROV support vessel, from Colombo Dockyard PLC, Sri Lanka.
Greatship Ramya is a DP2 vessel, capable of supporting offshore exploration and production, the company said in a statement.
On Friday, Great Eastern Shipping shares declined 0.40% down at Rs299 on Bombay Stock Exchange, while the benchmark Sensex ended 1.25% down at 17,998 points.
Pharma company Strides Arcolab Ltd said it has allotted 3,220,000 fully paid equity shares of Rs10 each to Agnus Holding, a promoter group company, against conversion of warrants at a price of Rs91.15 per share.
Consequent to the above allotment, the paid up equity share capital of the company has increased from Rs43.70 crore consisting of 43,701,138 equity shares of Rs10 each to Rs46.92 crore consisting of 46,921,138 equity shares of Rs10 each.
On Friday, Strides Arcolab shares closed 2.35% down at Rs415 on Bombay Stock Exchange, while the benchmark Sensex ended 1.25% down at 17,998 points.