Of the Rs 7 crore, a sum of Rs 2 crore will come through internal accruals, while the remaining will be in the form of a rupee term loan from the Industrial Finance Corporation of India, company managing director LP Sashikumar said.

The company had acquired a one-year-old software firm KLG Softech Ltd with a turnover of about Rs 45 lakh. The company's name has been changed to Goldstone Softech Ltd, and a proposal has been mooted to amalgamate it with Goldstone Engineering. After the amalgamation, a separate division will be set up for software development and training. This centre will be headed by CMC Ltd's former chairman and managing director KK Krishnan Kutty, a company officialsaid.

As of now, Goldstone Engineering has invested about Rs 1.40 crore on the proposed software project. It has also entered into strategic alliances with Forte Software Inc, Microsoft, Sirius (a subsidiary of the Japan-based Mitsubishi Corporation and James Martin & Company.

Goldstone Engineering is in the process of setting up a training and monitoring centre for Forte Software Inc to train software engineers and deploy them abroad for undertaking onsite consulting assignments. It also intends to promote a wholly-owned subsidiary in America for which the company has obtained approvals from Reserve Bank of India.

For the year ended June 30, 1998, Goldstone Engineering has posted a gross income of Rs 22.22 crore and a gross profit of Rs 6.98 crore.