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http://expressbuzz.com/cities/bangalore/cranes-software-no-pay-since-march-2009/204090.html
Cranes Software: No pay since March 2009
Jayadevan PK & Imran Khan Express News ServiceFirst Published : 05 Sep
2010 03:57:21 AM ISTLast Updated : 05 Sep 2010 01:31:22 PM IST
BANGALORE: Cranes Software, a Bangalore-based software product company which was suspended from trading at the National Stock Exchange (NSE) from September 3, has not paid salaries and other dues to about 100 employees, according to a group of ex-employees who are contemplating legal action against the company. The exact number of employees who have not been
paid could not be ascertained.
While an official spokesperson did not respond to an e-mail sent by Express on Friday, during a previous meeting with Express in October 2009, the company’s managing director, Asif Khader, had admitted to facing a “temporary cash crunch”.
However, the company declared a profit of `4.78 crore (Q2 of 2009) while the salaries were still unpaid. In Q3 2009, the company registered a loss. “Many employees have already left the company,” an employee claimed. In 2008, before recession hit the company, the headcount was about 1,100. Industry sources told Express that the company has shed over half its staff now.
The company’s stock was still trading on Friday at the Bombay Stock Exchange (BSE). The company’s stock was suspended from trading at the NSE due to non-filing of financial results. Khader had admitted that the last few quarters have been challenging for Cranes as a result of the global recession, which squeezed cash flow and affected exports. “The company lost significant revenue because The MathWorks Inc, the parent company of MATLAB, decided to set up its own operations in India,” he said.
According to data collected by an ex-Cranes employee (a copy of which is available with the Express), salaries and other benefits like Sodexo coupons, leave encashment and bonus have not been paid from as back as March 2009. The ex-employees, in collaboration with Unites Professionals — a Bangalore-based union of software professionals — are contemplating legal action.
In an earlier e-mail sent to the HR department of the company, the employees had complained that the cheques issued to them had bounced. Karthik Shekhar, general secretary, Unites Professionals India, said, “About 20 of the affected employees met at the Unites office on Saturday to chart out a future course of action, including sending petitions to some Ministers.”
courtesy: Indian Express
