We have audited the accompanying standalone financial statements of Harig Crankshafts Limited ('the
Company'), which comprise the Balance Sheet as at 31st March 2025, the Statement of Profit and Loss
(including Other Comprehensive Income), the Cash Flow Statement and Statement of Changes in Equity
for the year then ended, and a summary of the material accounting policies and other explanatory
information.
In our opinion and to the best of our information and according to the explanations given to us, except
for the effects of the matter described in the Basis for Qualified Opinion section of our report, the
aforesaid financial statements give the information required by the Companies Act 2013 in the manner
so required and give a true and fair view in conformity with the Companies (Indian Accounting
Standards) Rules 2015, as amended, and other accounting principles generally accepted in India, of the
state of affairs of the Company as at 31st March 2025, net loss, changes in equity and its cash flows for
the year ended on that date
Basis for Qualified Opinion
1. The Company has not filed Income tax Return from Assessment Year 2012-13 till Assessment
Year 2023-24. Due to the absence of these tax filings, we are unable to obtain sufficient and
appropriate audit evidence regarding the company's compliance with tax regulations, and any
related financial impact thereof.
2. The company has not filed its quarterly financial results with the stock exchange for the F.Y:- 23¬
24 and periods prior to that as required under regulations 33 of SEBI (Listing Obligation and
Disclosure Requirements) Regulations, 2015. Further, we are unable to obtain sufficient and
appropriate audit evidence regarding the financial impacts on the accounts of Non-compliance
with the relevant rules and regulations of Securities and Exchange Board of India (SEBI) and
Bombay Stock Exchange (BSE).
3. The company has not filed Annual Financial Statements for previous years prior to FY22-23 with
registrar of companies. Further, we are unable to obtain sufficient appropriate audit evidence
regarding the financial impact on account of Non-compliance with the other relevant corporate
laws.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Companies Act, 2013, as amended ("the Act"). Our responsibilities under those Standards
are further described in the "Auditor's Responsibilities for the Audit of the Standalone financial results"
section of our report. We are independent of the Company in accordance with the Code of Ethics issued
by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that
are relevant to our audit of the standalone financial results under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our qualified opinion.
Emphasis of Matter
1. We draw attention to the Note No. 31 of the financial statements, describing the
consideration of the resolution plan as approved by the Hon'ble NCLT by an order dated 17th
April 2024.
2. We draw attention to the Note No. 13 of the financial statements, describing the classification
of certain Assets which have been held for Sale by the Company.
Our conclusion is not modified with respect to these matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the current year. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
We have determined that there are no key audit matters to communicate in our report.
Information other than the Financial Statements and Auditor's Report thereon
The Company's Board of Directors are responsible for the preparation of the other information. The
other information comprises the information included in the Annual Report, but does not include the
standalone financial statements and our auditor's report thereon. The Annual Report is expected to be
made available to us after the date of this auditor's report.
Our opinion on the standalone financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the
other information identified above when it becomes available and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
When we read the other information, if we concluded that there is a materially misstatement therein,
we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial
Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial
statements that gives a true and fair view of the financial position including other comprehensive
income, financial performance, changes in equity and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the Indian Accounting Standards (Ind As)
prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting policies; making
judgements and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of
the standalone Ind AS financial statements that gives a true and fair view and are free from material
misstatements, whether due to fraud or error.
In preparing the Standalone Financial Statements, management and Board of Directors is responsible for
assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless the Board of Directors either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The
Company's Board of Directors is also responsible for overseeing the Company's financial reporting
process.
The Company's Board of Directors is also responsible for overseeing the Company's financial reporting
process.
Auditor's responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Financial Statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal controls.
• Obtain an understanding of internal financial controls relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act,
we are also responsible for expressing our opinion on whether the Company has adequate
internal financial controls with reference to financial statement in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management and Board of Directors.
• Conclude on the appropriateness of management's use of the going concern basis of accounting
in preparation of financial statements and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant doubt on the
Company's ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's report to the related disclosures in the
Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's However,
future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Financial Statements, including
the disclosures, and whether the Financial Statements represent the underlying transactions
and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of
the Financial Statements may be influenced. We consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii)
to evaluate the effect of any identified misstatements in the Financial Statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the Financial Statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor's report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit except for the matters
described in the Basis for Qualified Opinion Paragraph above.
b. Except for the possible effects of the matters described in the Basis for Qualified Opinion
Paragraph above, in our opinion, proper books of account as required by law have been kept by
the Company so far as it appears from our examination of those books except for the matters
stated in the paragraph 1 (vi) below on reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014.
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income,
Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in
agreement with the relevant books of accounts;
d. In our opinion, except for the matters described in the Basis of Qualified Opinion Paragraph
above, the aforesaid standalone Ind-AS financial statements comply with the Ind AS specified
under Section 133 of the Act, read with relevant rules issued thereunder.
e. On the basis of the written representations received from the directors as on 31st March, 2025
taken on record by the Board of Directors, none of the directors is disqualified as on 31st March,
2025 from being appointed as a director in terms of Section 164 (2) of the Act.
f. The modifications relating to the maintenance of accounts and other matters connected there
with are as stated in the paragraph 1a above on reporting under Section 143(3)(b) of the Act and
paragraph 1(vi) below on reporting under Rule11(g) of the Companies (Audit and Auditors)
Rules, 2014
g. With respect to the adequacy of the Internal Financial Control with reference to Financial
Statements of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure A".
h. With respect to the matter to be included in the Auditor's Report under section 197(16), In our
opinion and according to the information and explanations given to us, the remuneration paid
by the company to its directors during the current year is in accordance with the provision of
section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid
down under section 197 (16) of the Act which are required to be commented upon by us.
i. With respect to the other matters to be included in the Auditor's Report in accordance with the
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i) the Company has no pending litigations which would impact its financial position.
ii) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii) There was no amount which was required to be transferred to the Investor Education
and Protection Fund by the company.
iv) a) The Management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person or entity, including foreign
entity ("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
b) The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("Funding Parties"),
with the understanding, whether recorded in writing or otherwise, that the Company
shall, whether, directly or indirectly, lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;
c) Based on the audit procedures that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided
under (a) and (b) above, contain any material misstatement.
v) No dividend has been declared and paid during the year by the company.
vi) Based on our examination which included test checks and information given to us, the
Company has used accounting softwares for maintaining its books of accounts, which
did not have a feature of recording audit trail (edit log) facility in terms of the Proviso to
Rule 3(1) of the Companies (Accounts) Rules, 2014.
2. As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Act, we give in the
annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
For M B Gupta & co.
Chartered Accountants
Firm Reg. No: 006928N
Sd/-
Mahesh Baboo Gupta
Partner
Membership No: 085469
UDIN: 25085469BMIBTJ6756
Place:Noida
Date: 29.05.2025
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