Cranes Software International

1.  Contingent liabilities not provided for and Capital commitments
 
                                                    ( Rs. in Million )
 Particulars                         Current Year        Previous Year
 
 a.  Contingent liabilities 
 not provided for
 I.  Outstanding guarantees and 
     counter guarantees                 2449.91             466.38
 II. Bills discounted                    535.71                -
 
 b.  Claims against the Company not 
 acknowledged as                         490.82              14.96 
 debtson Tax matters in dispute 
 under appeal
 Estimated amount of contracts 
 remaining to be executed                 13.29              49.18
 on capital account not provided for
 
 2.  Security for borrowings
 
 i. Working Capital and Term Loans: Bank finances are secured by
 hypothecation of stocks of software, book debts and collaterally
 secured by properties; personally guaranteed by Whole time Directors
 and also have additional collateral security by way of pledge of
 promoters share for a part amount.
 
 ii.  Vehicle Loans: Finance for purchase of vehicles are secured by
 hypothecation of respective vehicles.
 
 iii.  Finances availed from UPS Capital Business Credit are personally
 guaranteed by Whole time Directors.
 
 3.  Debtors and Creditors; Loans and Advances
 
 Periodically, the Company evaluates all Debtors and Creditors balances.
 However, some of these are subject to confirmation.
 
 All Current Assets, Loans and advances, have at least the value as
 stated in the Balance Sheet if realized in the ordinary course of the
 Business.
 
 4.  Dues to Small-scale industrial undertakings
 
 i. As at March 31, 2009 and March 31, 2008, the Company has no
 outstanding dues exceeding Rs. 1 Lakh for more than 30 days to Small
 Scale Industrial undertaking.
 
 ii. There are no micro and small enterprises, to whom the Company owes
 dues, for more than 45 days as at March 31, 2009.  This information as
 required to be disclosed under the Micro Small & Medium Enterprises
 Development Act, 2006 has been determined to the extent such parties
 have been identified on the basis of information available with the
 company.
 
 5.  Preferential Issue
 
 The Company issued 1,000,000 Equity shares of Rs.2 each at a premium of
 Rs. 108 per share on preferential basis to strategic investors on
 September 22, 2006 amounting to Rs. 110 million. During October 2005,
 the Company had raised 1,200,000 equity shares of Rs.10 each at a
 premium of Rs.890 per share to promoters and strategic investors.
 Pending utilization, the aggregate amount of Rs.1190.00 Million is
 forming part of Balances with Scheduled Banks in Indian Rupees –
 Deposit Accounts as on March 31, 2009.
 
 6.  Foreign currency convertible Bonds
 
 The Company issued and allotted on March 17, 2006 Foreign Currency
 Convertible Bonds (Considered as non-Monetary liability) for Euro 42
 Million (Equivalent to Rs. 2,270.10 Million) bearing an interest at
 2.5% per annum payable half yearly. The bonds are convertible at any
 time on and after April 27, 2006 and till close of business on March
 11, 2011 and were convertible into shares or GDRs at an initial
 conversion price of Rs. 143.293 per share with a fixed rate of exchange
 on conversion of Euro 1.00 = Rs. 52.6828. The outstanding bonds are
 redeemable at a premium of 12.833% on March 18, 2011. Further, based on
 the relevant clause of the issue document, conversion price has now
 been refixed at Rs.115. During the year ended 31 March 2009 there has
 been no conversion of the Bonds into Shares. If the outstanding bonds
 as on March 31, 2009 are converted into equity shares or GDRs, then the
 share capital of the Company will increase by 19,240,675 shares.
 
 Proportionate Premium payable on redemption of FCCB of Rs 60 Million
 (Previous Year Rs.60 Million) has been transferred to FCCB Redemption
 reserve during the year out of share premium account. In the event that
 the conversion option is exercised by the holders of FCCB in the
 future, the amount of premium charged to the share premium account will
 be suitably adjusted in the respective years.
 
 7.  Research & Development
 
 Research & development expenditure recognized as expenses during the
 year amounted to Rs.3.71 million.
 
 8.  Acquisitions / Divestments
 
 During the year, the Company, through its wholly owned subsidiary
 Systat Software Gmbh acquired 100% of the shares of Cubeware Gmbh
 
 9.  Previous year’s figures have been regrouped and reclassified
 wherever necessary