Cranes Software International Ltd. — Interim / Quarterly Report 2021

Feb 12, 2021

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CranesSoftwareInternationalLimited

Ph:+9] 80 6764 4800/4848 Fax:+91 80 67644888 5111132me

CorrespondenceAda'rars.‘ #82,PresidencyBuilding.3rdat4thFloor. SeMarksRoad,Bengaluru-$6001.We

12‘”February, 2021

To. The Manager Departmentof CorporateServices BSE Limited, P J Towers.DalalStreet Mumbai- 400 001

DearSir.

Sub: MeetingortheBoardof Directors- Outcome Ref: Company No. 512093

Furthertoourletterdt.4‘” Febmary, 2021 informingyouof theBoardof Directors Meeting.we wish to informyou thatat the meetingof the Boardof Directorsheld today(12*hFebruary. 2021 ). theBoardhas:

• . Approvedand takenon recordtheun-auditedfinancialresultsforthe quarter andperiodended31“ December, 2020. The resultsareenclosedherewithfor yourinformation I records.

• a The LimitedReviewReportis alsoenclosedforyourreference.

Thankingyou.

Yoursfaithfully, For Cranes Software International Ltd.

W / Auth rised Signatory Name: Mueed Khader Designation: Director

Encl: as above

ISO 9001:2000 ISO 2700152005 CMMILS V1.2

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Pendingatthebeginning Receivedduring Disposedof during Remainingunresolvedattheend of theQuarter theQuarter theQuarter of theQuarter	I! INVES‘I’ORCOMPLAINTS FOR 3 MONTHS MD 3181’ DECEMBER 2020	- Numberofshares 65,19,000 65,19,000 65.19.000 65.19.000 - Percenth of shares (as a % of the total shareholding ofpromoter andpromoter group) 86'7”” 367096 86.70% 86'7”" - Percentageof shares (as a % of the totalshare capitalofthecompany) 5.54% 5.54% 5.54% 5.54%	(b) Non-encumbered	- Percen ofshares as a % ofthetotalshare	shareholdingofpromoterandpromotergroup) ’3'300’5 13-30% 13-30% ”30%	- Numberofshares 10,00,000 10,00,000 10.00.000 10,00,000 - Percentage of shares (as a 96 of the total	(a) PledgedI Encumbered	2 PromotersandPromoterGroupShareholding	- Number otshares 11.02.47.850 11.02.47.85011.02.47.85011.02.47.850 - Percentage01shareholding 93.62% 93.62% 93.62% 93.62%	1 PublicShareholding	A PARTICULARS OF SHAREHOLDING	SI. IRTI 3 MonthsEnded Yearended No P CUMRS 31.12.2020 30.09.2020 31.12.2019 31.03.2020	PART~2
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Notes

1. TheaboveresultisfortheperiodendedDecember31, 2020 asreviewedandrecommendedby theAuditcommitteeof the Board.hasbeenapprovedbythe Boardof Directorsatitsmeeting heldon February12, 2021.

• The statementhas been preparedin accordancewith the Companies(lndianAccounting Standards)Rules, 2015 (ind AS) prescribedunder section 133 of the companiesAct, 2013 and otherrecognizedaccountingpracticesandpoliciestotheextentapplicable.

• The businessof theCompanyfallsundera singleprimarysegmenti.e., IT/ iTES inaccordancewith IndAS 108 OperatingSegments“andhenceno segmentreportingisapplicable.

• The Companyhas not provided interestin books of accountson FCCB Liability,Loanfrom UPS upital & BanksforquarterendedDecember31, 2020.

TheCompanyhasnotrestatedforFCCBliability,LoanfromUPSCapitalandinteresthereonfor thequarterendedDecember31,2020.

• On a standalonebasis,the Companyperformedwellin the monthsaheadof the pandemic, particularlyas the Varsity division reinforcedits marketpositionin the trainingand education market. However, we have experienced serious business impact and disruptionsfrom the pandemicdownturnacrossthe entireindustrial,manufacturingand servicesspectrum.Revenues andoperationshavebeendrasticallyreducedbecauseof shut-downs,travelrestrictions,and highlycurtailedcustomers'and users'demand.We are planningfor a post-Covidrebound basedon i) leveragingthescopeandreachof legacyproducts,servicesandtrainingstrengthsto addressexpected needs of customers,students, corporate and universities,ii) continuingto developtrainingprogramsin cutting-edgetechnologiessuch as Cloud Computing,Analyticsand Al, iii)expandingourexpertise,programsandcollaborationsin therapidlyevolvingon-linetraining sector, and iv) productivelicensingarrangementswhich leverage our products, servicesand extensivecustomerelationshipsandmarketreach.

• OtherexpensesincludeexchangefluctuationlossofRs.64.23LaidisfortheQuarterandlossof Rs. 302.89Lakhsfortheperiodof 9 monthsended.

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forCraneSalim minim Limited
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Piace : Bangalore

|

Setltia Prabhad I‘Iegcle(‘3’Co. Chartered Accountants

INDEPENDENTAUDITOR'SREVIEWREPORTONREVIEWOE[IN‘I’ERIM] STANDALONE FINANCIALRESUIJ’S

To theBoardof Directors CranesSoftwareInternationalLimited Bengaluru

1. We havereviewedthe[standaloneunauditedfinancialresultsof][CranesSoftware] InternationalLimited(the['Company')for the quarterended31“][December2020] andthe yearto date[resultsfor the period1"][April2020 to 31"][December2020,] beingsubmittedby the[companypursuanto therequirementsof Regulation33 of] the Securitiesand[ExchangeBoard of][India (ListingObligationsand][Disclosure] Requirements)Regulations,[2015][(as amended),includingrelevantcircularsissued] bySEBIfromtimetotime.

• This statementwhich[is][the][responsibilityof][the][Compaan][Managementand] approvedby the CompanVs[Boardof][Directors,hasbeenpreparedin accordance] withtherecognitionand[measurementprincipleslaiddownintheIndianAccounting] standard34, InterimFinancial[reporting(Ind34), prescribedunderSection133ofthe] and[otheraccountingprinciplesgenerallyacceptedin][India]

• CompaniesAct, 2013 and is in compliance[with] the presentationand[disclosurerequirementsof] Regulation33 of the[SecuritiesandExchangeBoardof India(ListingObligationsand] Disclosure Requirements)[Regulations,2015][(as][amended) includingrelevant] circularsissued by SEBI[from time to][time. Our][responsibilityis][to][expressa] conclusiononthe[Statementbasedonourreview]

2. We conducted[ourreviewinaccordancewiththeStandardon ReviewEngagements] (SRE)2410, ‘Review[of InterimFinancialInformationperfumedbytheIndependent] Auditorof the Entity“[issuedby the Instituteof CharteredAccountantsof][India.A] reviewof interim[financialinformationconsistsof][makinginquiries,primarilyof] personsresponsible[forfinancialandaccountingmatters,andapplyinganalyticaland] other review[procedures.A][review is][substantiallyless in][scope than an][audit] conductedin accordance[with the Standardson][Auditingspecifiedundersection] 143(1 0) of theAct.[andconsequently,doesnotenableusto obtainassurancethat] we wouldbecome[awareof][all significantmattersthat mightbe][identifiedin an] audit.Accordingly,wedonotexpressan[auditopinion.]

3. Basedon our[reviewconductedas above,subjectto][the mattersspecifiedin the] 'OtherMatters’andthe['Emphasisof matter‘paragraphsbelownothinghascometo] ourattentionthatcauses[usto believethattheStatementhasnotbeenpreparedin] all materialrespectsin[accordancewith IndAS][and other recognisedaccounting] practicesandpolicies,andhasnot[disclosed 1][;] ['...] ationrequiredtobedisclosed in termsof Regulation[33][of the Listing] [:][M.] " ”0%,;15 includingthemannerin whichitistobedisclosed.or[thatitcanI][j] [.]

W 021,1‘Floor. l4. 'A'MalnRoad,'E’ Block 4 ,v M» .hokclN090. Bangalore560092

4. OtherMatters

• 4.1 There are undisputed statutory dues including dues on current year’s transactions, on account of Provident Fund Contribution, Employee[State] Insurance,IncomeTax, Service wt, Sales Tax, Goods and Service tax, Dividend DistributionTax and the like, not deposited by the Company in favour of the respectivestatutoryauthorities.

• 4.2 Earningsin foreign endianges are not realized within the periods stipulated underFEMAandpermissionisawaitedfromthestatutoryauthoritiestowriteoff the same.

• 4.3 a) On a petitionfiledby the Foreigicurrencyconvertiblebondholders,The Hon'bleHighCourtof Kamatalraissueda windingup order againstthe company,whichindicatestheexistenceofmaterialuncertaintythatmaycast significantdoubtonthecompany‘sabilitytocontinueasagoingconcern.

• b) The Companyhadreceivedan intimationfromthe ‘Ministryof Corporate affairs“duringAugust2019,statingthatthecompanyhasbeenorderedtobe woundup by the Hon'bleHighCourtof Kamatalravlde over dated28th November2017.

• c) Basedon the pleasubmittedby theCompany,the Hon‘bleHighCourtof Kamatakahadgranteda stayof 8 weels fromthe dateof orderviz 29‘" November2019 for the Newspaperpublicationof winding up order. if no settlement is arrived between the parties within the said period, the petitioneri.e. 'The Bankof NewYorlf' is at libertyto proceedwiththe newspaperpublication.Thestaygrantedendedon30"‘1anuary2020andthe petitionerhasnotmadeanynewspaperpubicationof thewindinguporder tilldate.

However,the accountshavebeen preparedon a goingconcernbasis.

5. EmphasisofMatter

• 5.1RedemptionofForeigncurrencyconvertiblebondamountingtoINR29,085lakhs (42 millionEuros)totheholdersof thebondshavefallendueduringApril2011 andisyettoberedeemedasonthequarterended31“ December2020.

• 5.2Themanagementis innegotiationwith[theForeigncurrencyconvertiblebond][the view thatthe liabilityof]

• holdersfor settling[its dues. The managementis of] ma 38,695 lakhs[reflectedin the financialstatementswill adequatelycover its] liabilityonsettlementofdueswiththeforeign[currencyconvertiblebondholders] andthereforeno[provisionfor interestis providedforthequarterendedand] ninemonthsended31"[December2020.Hadsuchinterestbeenprovidedinthe] books in the normal[course, the][presentloss for][the quarterended and][nine] monthsended31“[December2020wouldhavebeenhigherbyNR 453.35lakhs] andINR1,304.55lalths[respectively.]

• 5.3 In continuationto[the pointno.][5.2][above,the companyhas also discontinued] the restatementof the[Exchangefluctuationgain] [I] [losson][accountof][the] outstandingduetowardsForeigncurrency[convertiblebondandtheinterestdue] thereon,in linewiththe Ind[A5-21 “The Effectsof][Changesin ForeignExchange] Rates".Hadsuchrestatementofliabilitybeenmadein[thebooksinthenormal] course,the presentlos for[thequarterendedandninemonthsended31“] December2020 wouldhave[beenhigherby INR1,144.96 lakhsand INR2,085.76] lakhsrespectively.

• 5.4Loanavailedbythecompany[from'UPSCapitalBusinessCredit’remainsunpaid] and is overduesinceApril[2014. The managementis of the viewthatthe fiability] of INR696.37 lakhs[(includinginterest)reflectedin the financialstatementswill] adequatelycoveritsliabilityon[settlement] ofduesandthereforeno[provisionfor] interestis providedfor the[quarterendedandninemonthsended31"][December] 2020. Had such interest[been providedin the booksin the normalcourse,the] presentlossforthequarterended[andninemonthsended31" December2020] wouldhavebeenhigherbyINR[11.00lalchsandma33.69lairhsrespectively]

• 5.5 In continuationto the[point no. 5.4][above.the companyhasalso discontinued] the restatementof the Exchange[fluctuationgain] [I] [losson][accountof][the] outstandingdue towards 'UPS Capital[BusinessCredit’][and][the][interestdue] thereon,inlinewiththeIndA5-21“The[Effectsof ChangesinForeignExchange] Rates".Hadsuchrestatementof liability[been madein the booksin the normal] course,the presentlossfor the quarter[endedandninemonthsended31“] December2020 wouldhavebeenlower[by INR19.53 lakhsand "IR][22.04][lakhs] respectively.

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SethiePmbhadHegde('5’Co. Chartered Accountants

“DEFENDER![AUDITOR'SREVIEWREPORTON][REVEW][OF][INTERIMCONSOLIDATED] FINANCIALRESUIJ'S

TotheBoardof[Directors] CranesSoftware[InternationalLimited]

• statementof

• a. We have[reviewedthe accompanying] results(the['Statement‘)] ofCranes[Softwareinternational] Limited(the['iloldingCompany“)] togetherreferred[toas‘the]

• andits[subsidiaries] (theHolding[Companyanditssubsidiaries][December2020andtheconsolidated] yearto date

• Group’),forthe[quarterended3lst] resultsforthe[periodlst][April2020 to 31stDecember2020 beingsubmittedby the] of Regulation[33 of][theSEBI(Listing]

• HoldingCompany[pursuantto therequirements] Regulations,2015[(as amended),including]

• Obligationsand[DisclosureRequirements)] relevantcircularsisued[bytheSEBIfromtimetotime.]

• b. ThisStatement,[whichis theresponsibility] of theHolding[Company’smanagement] and approvedbythe[HoldingCompanfs Boardof Directors,hasbeenpreparedin accordance] Standard

• withtherecognitionandmeasurementprincipleslaiddown[inIndianAccounting] 34, interim[FinancialReporting(‘lnd AS][34'), prescribedundersection133][of][the] CompaniesAct,2013,and[otheraccounting] principlesgenerallyaccepted[inIndiaandisin] compliancewiththe[presentation] anddisclosure[requirements] of Regulation33[of the][(as amended),]

• SEBI listing[Obligationsand DisclosureRequirements)Regulations,2015] includingrelevant[circularsissuedby the SEBl fromtimeto time.Our responsibilityis to] expressaconclusionontheStatementbasedonourreview.

[Review] We conducted[our reviewof the Statementin accordancewiththe Standardon] Engagements(SRE)[2410.]['Reviewof][InterimFinancialInformationPerformedby][the] Indepenth Auditorof[theEntity',issuedbytheInstituteof CharteredAccountantsof] India.A reviewof[interimfinancialinformation] consistsof malthg[inquiries,primarilyof]

[financialand accountingmatters,and][applying] Parent'spersonnel[responsiblefor] analyticaland other[reviewprocedures.A][reviewis][substantiallyless in scope than an] auditconductedin[accordancewiththe Standardson][Auditingspecifiedunder section] doesnotenableusto[obtainassurancethatwe] 143(10)of theAct,and[consequently,] wouldbecomeaware[of][all significantmattersthatmightbe][identifiedin an audit.] Accordinegwedo not[expressanauditopinion.]

We also performed proceduresin accordance with the SEBI Circular ClR/CFD/CMD1/M/2019dated29[March2019 issuedbytheSEBIunderRegulation33][(8)] of the SEBI (ListingObligations[and][DisclosureRequirements)Regulations,2015][(as] amended),totheextentapplicable.

• d. Basedonourreviewconductedandprocedures[performedasstatedintheparagraph3] above,nothinghascometo ourattentionthat[causesus to believethattheaccompanying] Statement,preparedin accordancewith recognition[and][measurementprincipleslaid] down in the aforesaidlndian Accountl/ngWand other accountingprinciples

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requiredtobedisclosed[in] generallyacceptedin[india,hasnotdisclosedtheinformation] accordancewiththe[requirements] of Regulation33[of theSEBI(listingObligationsand] DisclosureRequirements)Regulations.2015,asamended.[indudingthemannerinwhich] exceptforthe[items] it is to be[disclosed.orthatit containsanymaterialmisstatement] mentionedinthe'Emphasisol[Hatters”paragraph] ‘e‘ forming[partofthisreport.]

• e. EmphasisOfMatters

1. Consolidatedfinancialstatementsof thecompany[includescompiledfinancialsprepared] oftheCompany[ofthebelowsubsidiaries:]

andprovided[tousbytheManagement] a) Systat[SoftwareGrnbh.] b) Systat[Soflwareinc] c)Cranes[SoftwareInc]

• d) CranesSoftware[InternationalPteLimited,Singapore]

2. Theconsolidatedunauditedfinanciai[resultsincludesfinancialinformation] of fourforeign subsidiarieswhichreflectstotal[revenuesofINR2,298.21lalthsfortheninemonthsended] 31‘December2020,totdnetprofitaftertaxoflult 19S.91|aldtsfortheninemonthsended 31" December[2020 respectivelyas consideredin the consolidatedunauditedfinancial] resub.basedmdtefinmddresul5whichhaenotbeenmfiewedbymeirnspecfive auditors.

• [Matter'paragraphas]

• 3. Ourlimited[reviewreporthasto be readalongwiththe 'Emphasisof] appearingin our limited[reviewreportof evendatein respectof the standalonefinancials] of CranesSoftware[internationalLimited.]

Ourconclusionis[notqualifiedinrespectoftheabovematter.]

For SethtaPrabhad[Hegde] [&] [ Co.]

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Place:Bengalnru Date: February12.2021

Enclosure: Anneme 1 List of entities included in the Statement

FINANCIALREPORTS

Annexure 1

Listof subsidiariesincludedin the statement

• (a) AnalytixSystemsPrivateLtd

• (b) CaravelinfoSystemsPrivateLtd

• (C) CranesVarsityPrivate|imited

• (d) EsqubeCommunicationSolutionsPrivateLtd (e) ProlandSoftwarePrivateLtd

• (f) is) TilakAutoTech PrivateLimited

• (h) CranesSoftwareIntl.Pte Ltd

• (i) SystatSoftwareGmbh (i) CranesSoftwareInc (k) SystatSoftwareInc