HARIG CRANKSHAFTS LIMITED
ANNUAL REPORT 2008-2009
THE MEMBERS OF
HARIG CRANKSHAFTS LIMITED
We have audited the attached Balance Sheet of M/s. Harig Crankshafts
Limited, Noida as at 31st March 2009 and also the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
In accordance with the provisions of section 227 of The Companies Act,
1956, we report that;
1. As required by the Companies (Auditors Report) order, 2003, issued by
the Central Government of India in terms of Sub-section (4A) of Section
227 of the Companies Act, 1956, and on the basis of such checks of the
books and record of the Company as we considered appropriate and according
to the information and explanations given to us, we enclose in the
annexure a statement on the matters specified in paragraphs 4and 5 of the
2. Further to our Comments in the annexure referred to above, we report
a) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the company so far as appears from the examination of the books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
d) In our opinion, the Balance Sheet, Profit & loss account and Cash Flow
Statement dealt with by this report comply with the accounting standards
referred to in sub section (3C) of section 211 of the Companies Act, 1956;
and subject to non provision of certain liabilities, Note 11 of schedule-
e) On the basis of the written representation received from the directors
as on 31st March, 2009 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March, 2009
from being appointed as a director in term of Clause (g) of Sub-Section
(1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
explanations given to us, the said accounts, subject to Note No. 5
regarding non-confirmation\reconciliation of account of secured loansdebtors\ creditors\ loans & advances, Note No. 11 regarding non provisions
of gratuity, leave encashment, of schedule 12 read together with
significant accounting policies and note appearing thereon, give the
information required by the Companies act, 1956 in the manner so required
and give a true and fair view in conformity with accounting principals
generally accepted in India:
g) In the case of Balance Sheet, of the state of affairs of the Company as
at 31st March, 2009.
h) In the case of Profit & Loss Account, of the loss of the Company for
the year ended on that date; and
i) In the case of Cash Flow statement, of the cash flows for the year
ended on that date.
For J.K. ARORA & CO.,
PLACE : New Delhi
DATE : 31.08.09 (J.K. ARORA)
Membership no. 9787
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 1 of our report of even date.
I. (a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. No material discrepancies were noticed on such
(c) During the year, in our opinion, the company has not disposed of a
substantial part of fixed assets.
II. (a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanation given
to us, the procedures of physical verification of inventories followed by
the management were found reasonable and adequate in relation to the size
of the company and the nature of its business.
(c) On the basis of our examination of records of inventory, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and the
books records were not material in relation to the operations of the
III. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the Register maintained under
section 301 of the Companies Act 1956. As the company has not granted
loans, secured or unsecured, from parties listed in the Register
maintained under section 301 of the Companies Act 1956, paragraphs (iii)
(b), (c) and (d) of the order, are not applicable, (e) The Company has not
taken, any loan, secured or unsecured from companies, firm or other
parties listed in the register maintained U/s 301 of the Companies Act
1956. As the company has not taken loan secured or unsecured from parties
listed in the register maintained U/s 301 of the Companies Act 1956,
paragraphs (iii) (f) and (g) of the order are not applicable.
IV. In our opinion and according to the information and explanations given
to us, there exists an adequate Internal control system commensurate with
the size of the company and the nature of its Business with regard to
purchases of inventory, fixed assets and with regard to the sales of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control system
of the company.
V. (a) According to the information and explanation given to us, we are of
the opinion that the particulars of all contract or arrangements that
need to be entered into the register maintained u/s 301 of companies Act
1956, have been so entered.
(b) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of contracts or arrangement
entered in the register maintained u/s 301 of Companies Act 1956, and
exceeding the value of Rs. 5 lacs in respect of any party during the year
have been made at price which are reasonable having regard to prevailing
market price at the relevant time.
VI. According to information and explanation given to us the company has
not accepted deposits from the public.
VII. In our opinion, the company has an internal audit system commensurate
with the size and nature of its business.
VIII. We have broadly reviewed the books of account relating to materials,
labour and other items of cost maintained by the company pursuant to rules
made by the Central Government for the maintenance of cost records u/s 209
(1) (d) of the Companies Act, 1956 and we are of the opinion that prima
facie the prescribed accounts and records have been made and maintained.
We are not required to and, accordingly, have not made detailed
examination of the records.
IX. (a) The company is irregular in depositing with appropriate
authorities undisputed statutory dues including provident fund, employees
state insurance, Income tax, sales tax, wealth tax, service tax. excise
duty, custom duty and other material statutory dues applicable to it.
Further since the central government has till date not prescribed the
amount of cess payable U/s 441 (a) of the Companies Act 1956, we are not
in a position to comment upon the regularity or otherwise of the company
in depositing the same.
(b) According to the information and explanations given to us, undisputed
amounts payable in respect of income tax, sales tax, wealth tax, service
tax, customs duty and excise duty were in arrears, as at 31st March, 2009
for a period of more than six months from the date they became payable.
Particulars Amount (Rs.)
Employee Provident Fund 12,60,392.00
Tax coll. At Sources 27,532.00
Tax Deducted at Sources 1,92,167.00
Service Tax ,26,500.00
(c) According to the information and explanations given to us, there are
no dues of sales tax, income tax, customs duty wealth tax, service tax and
excise duty, which have not been deposited on account of any dispute.
X In our opinion the accumulated losses of the company are not more than
fifty percent of its net worth. Further the company has not incurred cash
losses during the financial year covered by our audit and during the
immediately preceding financial year.
XI Based on our verification and according to the information and
explanation given by the management of the company has defaulted in CC
Hypothecation which was regularized by the bank by sanctioning and
disbursement of demand loan of Rs. 800 lacs.
XII According to the information and explanation given to us, the company
has not covered any loans and advance on the basis of securities by way of
pledge of shares, debenture and other securities.
XIII In our opinion, the company is not a chit fund or a nidhi/Mutual
benefit fund/society. Therefore, the provisions of clause IV(XIII) of the
companies (Auditors Report) order, 2003 are not applicable to the
XIV In our opinion, the company is not dealing in or trading in shares,
securities, debenture and other investments. Accordingly, the provision of
clause 4(XIV) of the companies (Auditors Report) order, 2003 are not
applicable to the company.
XV According to the information and explanation given to us the company
has not given any guarantees for loans taken by others from bank or
XVI In our opinion, and according to the information and explanation given
to us the term loans were applied for the purpose for which they were
XVII According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that no
funds raised on short-term basis have been used for long-term investment.
No long-term funds have been used to finance short-term assets except
permanent working capital.
XVIII According to the information and explanation given to us, the
company has not made any preferential allotment of shares to parties and
companies covered in the register maintained u/s 301 of Companies Act 1956
during the year.
XIX According to the information and explanation given to us, during the
period covered by our audit report, the company had not issued any
XX According to the information and explanation given to us, during the
period covered by our report, the company has not raised any money the
XXI According to the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the course of our
For J.K. ARORA & CO.,
Place: New Delhi Proprietor
Date : 31.08.09 Membership No.9787
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