HARIG CRANKSHAFTS LIMITED
ANNUAL REPORT 2008-2009
TO THE MEMBERS
Your Directors are pleased to present the Annual Report for the year 2008-
09 on the business and operations of the Company together with Balance
Sheet as at 31st March 2009 and Profit and Loss Account for the year ended
on that date.
(Rs. In Lacs)
Total Income 2011.84 4247.85
Operating Profit 208.68 661.30
Less: Interest 297.36 248.10
Cash Accruals -88.68 413.20
Less: Depreciation 308.09 307.66
Profit/Loss before Tax -396.77 105.54
Provision for Taxation (including FBT) 3.32 13.84
Profit/Loss after Tax -400.09 91.70
During the year under review, the auto industry witnessed turbulent times,
which affected the performance of automobile majors, and cheaper import of
crankshafts from China. Your Company also suffered on account of decline
in demand due to these factors. The Government of India also imposed
dumping duty on cheap crankshafts import. The Government of India
announced stimulus packages for revival of the industry and the demand for
vehicles and auto components is reviving.
FUTURE OUTLOOK AND PROSPECTS
With the announcement of stimulus packages by the Government of India the
automobile industry is showing signs of revival and outlook for the next
couple of years remains positive. The new crankshafts machining line is
likely to commence commercial production by January 2010, and shall
improve the profitability of the Company.
However, the availability and price of steel are the major cause of
concern for the industry.
Your Directors deeply condole the demise of Mr. N.S. Parulekar and
accordingly he has ceased to be a Director of the Company. Your Board
places on record its appreciation of the services rendered by Mr.
Parulekar during his association with the company.
Mr. Anil Sharma, Mr. Sushil Nanda and Mr. N. Sinha, Directors retire by
rotation and being eligible offer themselves for re-election.
Mr. Deshbir Singh, Managing Director is proposed to be reappointed as
Managing Director for a further period of 5 years with effect from 1st
AUDITORS AND AUDITORS' REPORT
M/s. J.K. Arora & Co. Chartered Accountants hold office until the
conclusion of the ensuing Annual General Meeting and have signified that
they are eligible for re-appointment.
The observations of the auditors have been explained by way of notes to
During the year, none of the employee was in receipt of remuneration as
prescribed under section 217(2A) of the Companies Act, 1956. The
industrial relations during the year remained cordial.
DIRECTORS RESPONSIBILITY STATEMENT
Your Directors' declare:
1. that in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures.
2. that the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and Fair view of the state of affairs of the
company at the end of the financial year and of the profit and loss of the
company for that period.
3. that the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of Companies Act, 1956 for safeguarding the assets of the
company and for preventing and detecting frauds and other irregularities.
4. that the directors had prepared the annual accounts on a going concern
Your Directors' place on record the assistance extended by All India
Financial Institutions, Banks, PICUP, the Central and State Government of
Uttar Pradesh, and customers of the company.
Your Directors are grateful to the shareholders for their continued
For and on Behalf of the Board
CHAIRMAN & MANAGING DIRECTOR
ANNEXURE TO THE DIRECTOR REPORT
INFORMATION AS PER SECTION 217(E) READ WITH COMPANIES (DISCLOSURE OF
PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988AND FORMING
PART OF THE DIRECTOR'S REPORT FOR THE YEAR ENDED 31st MARCH, 2008.
1. Conservation of Energy
A. The Company has over the previous years taken several steps to conserve
energy wherever possible. This continues to remain area with studies,
discussions and analysis being undertaken regularly for further
B. The induction heaters installed on the press line are more efficient
and will have lower power consumption per kg, and shall also save fuel
Form of disclosure of Particulars with respect to Conservation of Energy.
A. Power and Fuel Consumption
For the year For the year
ending March ending March
a. Electricity Purchase 28.41 34.04
Units (Lacs) 163.88 195.66
Total/Amount (Rs. In Lacs) 5.77 5.75
Quantity (K ltrs.) 0.68 0.60
Total Amount (Rs. In Lacs) 24.39 19.92
Average Rate/unit per ltr. 35.87 33.20
b. Consumption per unit of Production
Machined Crankshafts Forgings (Per k.g.)
Standard Current Previous Standard Current Previous
(if Any) Year Year (if any) Year Year
(Kwt) 180.60 178.60 - 2.37 2.25
B. TECHNOLOGY ABSORPTION
Disclosure of Particulars with respect to absorption, research &
A Research and Development (R&D)
1. Specific areas in which R&D carried out by the Company
(a) Research & Development is carried out for development of new products
and for the improvement in the production process and quality of products.
(b) Improvement actions are being taken to reduce the number of billets
that are heated but not forged (commonly called drop outs). These actions
will be given by the introduction and adherence to the correct process
(c) Greater emphases will be given to making quality parts that will not
require additional operations (elimination of the work).
(d) All dies and tooling designs will be interrogated to identify ways to
improve yield and reduce the number of defectives being produced.
(e) Training will be given to all employees associated with the production
process in order that they can contribute to the reduction in waste,
improvement in quality and productivity,
(f) Preventive maintenance will be carried out to reduce lost time and
identify when corrective actions will be required.
2. Benefits derived as a results of the above R&D
(a) The Company has improved the quality of existing products and entered
into new products and has also been able to reduce the cost of production.
(b) Die life improvement and less die cost per ton.
(c) Reduction in set up time and contingencies planning.
3. Future Plan of Action
(a) The Management is committed to strengthen R&D activities to improve
its competitiveness in times to come.
(b) Promote a team working culture.
(c) Create a total quality approach.
(d) Provide a safe and ordered working environment.
(e) Encourage ideas and invention at all levels of the work force.
(f) Make quality parts in required numbers, on time, at the right cost.
(g) Gas fired heat treatment furnace which shall result in cost benefit to
4. Expenditure on R & D
(i) Capital (ii) Recurring (iii) Total (iv) Total R&D expenditure as a
percentage of total turnover.
The Company intends to make R&D integral part of the Corporate Philosophy
and attains to develop consciousness for devising new technologies and
processes at all levels and with this objective in view, the expenditure
incurred on Research & Development has not been quantified and segregated.
C. Technology Absorption, Adoption and Innovation
1. Efforts in brief, made towards technology absorption, adaptation and
(a) The company has continued with its efforts to absorb the Press
Forgings Technology and manufacture of Forging dies for it, with the help
of Computer Aided Design/Computer Aided Manufacturing (CAD7CAM) for
efficient and precise manufacture of Forging Dies. In addition, the new
processes and technologies developed through R&D have been adapted and
absorbed in manufacturing techniques.
(b) Fully automated line for crankshaft machining has been imported from
Daimler Chrysler, USA. The training of operators is in-house.
2. Benefits derived as a result of the above efforts e.g. Product
Improvement, Cost Reduction, Product development, Import substitution etc.
By virtue of the measures adopted by the Company and which are in process,
the efforts shall result in optimization of Raw Material utilization,
lesser machining time, consequent reduction in energy consumption, better
metallurgical properties, significant reduction in cost of production and
also consumer satisfaction.
C. Foreign Exchange Earnings & Outgo
During the year, the Company has spent Rs. 11,53,552/- (previous year Rs.
16,805/-) (Traveling) and earned Rs. 4,71,770/- (previous year Rs.
1922268/-), in foreign exchange.