Home  »  Company  »  Oil Country Tub.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Oil Country Tubular Ltd.

Mar 31, 2015

1. HISTORY:

Oil Country Tubular Limited (OCTL) is a unique integrated facility established in 1989 processing a wide range of Oil Country Tubular Goods viz., Drill Pipes, Heavy Weight Drill Pipes, Tubing, Casing, Drill Collars and other Oil Field Accessories required for the Oil Drilling, Exploration and Production. The facility is in the State of Telangana, India. The Company''s total capital outlay is RS.2520 Million.

2. (a) CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for): i) Contingent Liabilities (''RS.In Lakhs) As at As at 31.03.2015 31.03.2014

Income Tax - The revenue has appealed before Hon''ble High Court of Andhra 607.20 575.74 Pradesh against the order of Hon''ble Income Tax appellate Tribunal, Hyderabad which was in favour of the Company in respect of deduction claimed u/s 80 HHC.

Central Excise - Demand raised by the Central Excise Department in respect of process amounting to ''manufacture'' and 721.76 708.05 applicability of duty thereon in respect of certain products against which an appeal has been made before CESTAT, Banglore.

Commitment against capital contracts 104.11 0.00 yet to be executed

Commitment against revenue contracts 70.21 0.00 yet to be executed

As at As at 31.03.2015 31.03.2014

b) Guarantees

Bank guarantees 2328.81 3116.70

Letters of credit 2177.07 5371.04

Bills discounted - 318.92

Defined Benefit Plan

The employees'' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognised each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation. The obligation for leave encashment is recognised in the books as per Actuarial Valuation.


Mar 31, 2014

1. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for):

i) Contingent liabilities

a) Claims against the company not acknowledged as debts

(Rs. In Lakhs)

As at As at 31.03.2014 31.03.2013

Income Tax - The revenue has appealed before Hon''ble High Court of Andhra Pradesh against the order of Hon''ble Income Tax 575.74 544.27 appellate Tribunal, Hyderabad which was in favor of the Company in respect of deduction claimed u/s 80 HHC.

Central Excise - Demand raised by the Central Excise Department in respect of process amounting to ''manufacture'' and applicability 708.05 677.46 of duty thereon in respect of certain products against which an appeal has been made before CESTAT, Bangalore.

b) Guarantees

1) Bank guarantees 3116.70 3442.87

2) Letters of credit 5371.04 4033.40

3) Bills discounted 318.92 648.92

2. The Company proposes to declare Rs. 2/- per share as dividend to the equity shareholders, total dividend amounting to Rs. 885.79 lakhs.

Defined Benefit Plan

The employees'' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognised each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation. The obligation for leave encashment is recognised in the books as per Actuarial Valuation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.

3. Previous year figures have been regrouped / re arranged / reclassified wherever considered necessary to conform to the classification of the current year.


Mar 31, 2013

1. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for):

Contingent Liabilities

a) Claims against the company not acknowledged as debts (Rs. In Lakhs)

As at As at 31.03.2013 31.03.2012

Income Tax - The revenue has appealed before Humble High Court of Andhra Pradesh against the order of Humble Income Tax appellate 544.27 512.81 Tribunal, Hyderabad which was in favor of the Company in respect of deduction claimed u/s 80 HHC.

Central Excise - Demand raised by the Central Excise Department in respect of process amounting to ''manufacture'' and applicability of duty 677.46 - thereon in respect of certain products against which an appeal has been made before CESTAT, Bangalore.

b) Guarantees

1) Bank guarantees 3442.87 4705.28

2) Letters of credit 4033.40 4889.85

3) Bills discounted 648.92 1079.83

28. The Company proposes to declare Rs.2/- (Rs. 2/- only) per share as divided to the equity shareholders, total dividend amounting to Rs.885.79 lakhs (Rs.885.79 lakhs)

2. As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

Defined Contribution Plan

Defined Benefit Plan

The employees'' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognised each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation. The obligation for leave encashment is recognised in the books as per Actuarial Valuation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.

3. Segment Reporting:

The Company is predominantly engaged in the manufacture and sale of Oil Country Tubular Goods/services where the risks and returns associated with the products / services are uniform. Hence, the Company has identified geographical segments as its primary segment for reporting.

Notes for segment reporting:

a) Segment assets / liabilities comprise trade receivables / trade payables from the respective segments

b) All other assets/liabilities are taken as Unallowable Assets / Liabilities

c) Previous year figures are given in the brackets

4. Previous year figures have been regrouped / re arranged / reclassified wherever considered necessary to conform to the classification of the current year.


Mar 31, 2012

1. HISTORY:

Oil Country Tubular Limited (OCTL) is a unique integrated facility established in 1989 and is one of the leading Companies in the world, processing a wide range of Oil Country tubular Goods viz., Drill Pipes, Heavy Weight Drill Pipes, Tubing, Casing, Drill Collars and other Oil Field Accessories required for the Oil Drilling and Exploration. The facility was set up in the State of Andhra Pradesh, India with a capital outlay of Rs 500 Million. During the year the Company has taken up Second Heat Treatment Plant and End Finishing Facility to meet the demand of Customers with an estimated Project cost of Rs1500 Millions.

(a) CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for):

i) Contingent Liabilities

(Rs. In Lakhs) As at As at 31.03.2012 31.03.2011

a) Claims against the company not acknowledged as debts

Income Tax 512.81 481.35

b) Guarantees

1) Bank guarantees 4705.28 4025.36

2) Letters of credit 4889.85 623.95

c) Bills discounted 1079.83 971.68

2. The Company proposes to declare Rs 2 /- (Rs 2 /-) per share as dividend to the equity shareholders, total dividend amounting to Rs 885.79 lakhs (Rs 885.79 lakhs)

3. As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

Defined Benefit Plan

The employees' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognised each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation. The obligation for leave encashment is recognised in the books as per LIC actuarial valuation.

4. Segment Reporting:

The Company is predominantly engaged in the manufacture and sale of Oil Country Tubular Goods (OCTG). OCTG Sales and OCTG Service Segments were reported as Business Segments in the previous year where the risks and returns associated with the products / services are uniform and would represent secondary segments for reporting. Hence, the Company has identified geographical segments as its primary segment for reporting in accordance with Accounting Standard -17.

5. Previous year figures have been regrouped / re arranged wherever necessary.


Mar 31, 2011

1. HISTORY :

Oil Country Tubular Limited (OCTL) is a unique integrated facility established in 1989 and is one of the leading Companies in the world, processing a wide range of Oil Country tubular Goods viz., Drill Pipes, Heavy Weight Drill Pipes, Tubing, Casing, Drill Collars and other Oil Field Accessories required for the Oil Drilling and Exploration. The facility was set up in the State of Andhra Pradesh, India with a capital outlay of Rs. 500 Million. During the year the Company has taken up Second Heat Treatment Plant and End Finishing Facility to meet the demand of Customers with an estimated Project cost of Rs.1500 Millions.

2. Provident Fund:

Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged off to the Profit and Loss account of the year when the contributions to the fund are due. There are no other obligations other than the contributions to be remitted to the Provident Fund Authorities.

3. Leave Encashment:

Provision for Leave Encashment is recognised in the books as per the actuarial valuation.

a) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

b) Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is not recognised in the books as mater of prudence.

c) Research and Development :

Capital expenditure incurred has been disclosed under their natural heads of account and revenue expenditure incurred is charged off as a distinct item in the Profit and Loss account.

d) Claims:

Claims by and against the company, including liquidated damages, are recognised on acceptance basis.

Defined Benefit Plan

The employees gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognised each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation. The obligation for leave encashment is recognised in the books as per LIC actuarial valuation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return p!a assets and the Companys policy for plan assets management.



(Rs. in Lakhs)

As at 31.03.2011 As at 31.03.2010

4. Contingent liabilities not provided for

a) Bank guarantees 4025.36 2347.28

b) Letters of credit 623.95 1622.27

c) Bills discounted 971.68 2985.21

d) Un-executed Capital Work In Progress 745.15 8.25

5. Claims against the company not acknowledged as debts

Income Tax 481.35 449.90

(The revenue has appealed before Honble High Court of Andhra Pradesh against the order of Honble Andhra Pradesh Income Tax appellate Tribunal, Hyderabad which was in favour of the Company)

6. (a) Working Capital Loans from banks and interest accrued on these loans are secured by hypothecation of present and future raw materials, work in progress, finished goods, stores and spares and book debts of the company and charge on the existing immovable properties.

(b) The Term Loan includes ECB Loan and Buyers Credit facility for the Second Heat Treatment Plant and End Finishing Facility from Banks are secured by exclusive charges on the assets created out of the facility.

7. Segment Reporting:

The Company is predominantly engaged in the manufacture and sale of Oil Country Tubular Goods where the risks and returns associated with the product are uniform. Hence, the Company has identified the following Product segments of the Company for reporting.

8. There are no due to any creditors constituting "Suppliers" within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises Development Act, 2006.

9. Previous year figures have been regrouped / re arranged wherever necessary.


Mar 31, 2010

1. HISTORY:

Oil Country Tubular Limited (OCTL) is a unique integrated facility established in 1989 and is one of the leading Companies in the world, processing a wide range of Oil Country tubular Goods viz., Drill Pipes, Heavy Weight Drill Pipes, Tubing, Casing, Drill Collars and other Oil Field Accessories required for the Oil Drilling and Exploration. The facility was set up in the State of Andhra Pradesh, India with a capital outlay of Rs.500 Million.

(Rs. in Lakhs) (Rs. in Lakhs) As at As at 31.03.2010 31.03.2009

2. Contingent liabilities not provided for

a) Bank guarantees 2347.28 3270.77

b) Letters of credit 1622.27 1649.65

c) Bills discounted 2985.21 2158.56

d) Un-executed Capital Work In Progress 8.25 0.00

3. Claims against the company not acknowledged as debts

Income Tax 449.90 418.40

(The revenue has appealed before Honble High Court of Andhra Pradesh against the order of Honble Andhra Pradesh Income Tax appellate Tribunal, Hyderabad which was in favour of the Company)

4. Working Capital Loans from banks and interest accrued on these loans are secured by hypothecation of present and future raw materials, work in progress, finished goods, stores and spares and book debts of the company and a second charge on the immovable properties.

5. Segment Reporting:

The Company is predominantly engaged in the manufacture and sale of Oil Country Tubular Goods where the risks and returns associated with the product are uniform. Hence, the Company has identified the geographic segments as its primary segment for reporting. The geographic segments of the Company are America, Europe, India and Other Asian Countries.

6. There are no due to any creditors constituting "Suppliers" within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises Development Act, 2006.

7. Previous year figures have been regrouped wherever necessary.

 
Subscribe now to get personal finance updates in your inbox!