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Notes to Accounts of United Drilling Tools Ltd.

Mar 31, 2023

The estimates of future salary increase; considered in actuarial valuation, take account of inflation, seniority, promotions and other relevant factors such as supply and demand in the employment market.

The discount rate is based on prevailing market yields of Indian Government Bonds, as at the balance sheet date, consistent with the currency and estimated term of the post-employment benefit obligations.

The above sensitivity analysis is based on a change in each assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated

with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

(iii) Other Long Term Employee Benefits

Liability of Leave Encashment is provided in the books of account amounting to '' 18.82 lacs (Previous Year '' 15.41 lacs) on the basis of actuarial valuation basis as on balance sheet date. The liability is paid annually or during the year. It is non funded.

The estimates of future salary increase; considered in actuarial valuation, take account of inflation, seniority, promotions and other relevant factors such as supply and demand in the employment market.

The discount rate is based on prevailing market yields of Indian Government Bonds, as at the balance sheet date, consistent with the currency and estimated term of the post-employment benefit obligations.

Significant estimates and sensitivity Analysis

The sensitivity of the defined benefit obligation to changes in key assumptions is

The above sensitivity analysis is based on a change in each assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

4. The figures for the previous year have been regrouped and rearranged wherever found necessary to make them comparable with those of current year.

5. (i) The company is doing further research in enhanced recovery of oil from low performing oil well globally, the expenditure

incurred Is debited to intangible assets under development.

(ii) The provision for taxation has been made after considering the benefits available to SEZ units under Income Tax Act.

6. Foreign exchange risk and exposure

The Company transacts business primarily in USD, Euro and other currencies. The Company has foreign currency trade payables, receivables and advances, is therefore, exposed to foreign exchange risk. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies.

The Company don''t uses Forward Exchange Contracts to hedge its exposure in foreign currency. The foreign currency exposures are very less as compare to total working, therefore sensitivity analysis is not given. The information on derivative instruments and foreign currency exposure are as follows:

7. Segment Reporting

(i) The Company is engaged in only one business segment hence no business segment reporting required.

8. Related Party Disclosure

Related Parties as per the terms of Ind AS-24 " Related Party Disclosure" ( Specified U/Sec. 133 of the Companies Act,2013 ) and transactions with related party are as follows:-

* The aforesaid amount doesn''t includes amount in respect of gratuity and leave encashment.

Remuneration is within limits specified under Section 197 of the Act, as recommended by Remuneration and Nomination Committee and approved by Board and approved by shareholders'' at the annual General Meeting.

10. Loans or advances to specified persons

No loans or advances in the nature of loans are granted to promoters, directors, except to wholly owned subsidiary mention below and in note no 3 (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

The company has provided unsecured loan of '' 1150.00 lacs (Previous Year 1250.00 lacs) to P. Mittal Manufacturing Pvt. Ltd., a wholly owned subsidiary company, with relevant approval of the Board of Directors and Shareholders. The loan is subject to the minimum interest @ 8.% p.a. on ''500.00 lacs & @ 8.5% on ''650.00 lacs as per terms of agreement, and repayable not later than 5 Years ( Five Years) from the date of disbursement.

Note : Amount spent in F.Y. 2021-22 include '' 36.16 Lacs* unspent amount of previous year, '' 0.50 Lacs personal donation not qualified for CSR and '' 0.07 Lacs excel spent to be set off in FY 2022-23.

14. Financial Risk Management(i) Financial risk management objectives and policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments.

Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payable and loans and borrowings.

The Company manages market risk through top management executives, which evaluates and exercises control over the entire process of market risk management. The decisions which are approved by Senior Management. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures like foreign exchange forward contracts, borrowing strategies and ensuring compliance with market risk limits and policies.

(ii) Market Risk- interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk. The company uses normally Fixed

(ii) Dividend on Equity shares

Deposit route to park the surplus funds. For borrowing which reduces to Nil some time, company uses Bank borrowings at the prevailing rate of the Bank, after bargain by the senior management.

(iii) market risk- foreign currency risk.

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales and services in overseas and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies.

15. Capital risk management(i) risk management

The Company aim to manage its capital efficiently so as to safeguard its ability o continue as a going concern and to optimize returns to our shareholders. The capital structure of the Company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

16. Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business.

ii) Actual or expected significant changes in the operating results of the counter-party,

iii) Financial or economic conditions that are expected to cause a significant change to the counter-party''s ability to meet its obligations,

i v) Significant increase in credit risk on other financial

instruments of the same counter-party,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as an income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

17. Trade Receivables and provision for expected credit losses (ECL)

The Company extends credit to customers as per the contractual obligation and internal credit policy. Any deviation are approved by appropriate authorities, after due consideration of the customers credentials and financial capacity, trade practices and prevailing business and economic conditions. The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables and contract assets are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the customers etc. Loss allowances and impairment is recognised as per the Company policy. The ageing of trade receivables are as follows:


18. Estimation of uncertainties relating to the global health pandemic from COVID-19

The COVID-19 pandemic is an evolving human tragedy declared a global pandemic by the World Health Organization with adverse impact on economy and business. The spread of Covid 19 has affected the business marginally during the previous financial year 2021-22, however during the current Financial Year there is no direct impact on the company, but company feels the effect indirectly, in form of decreased demand of products.

The Company has taken various measures in consonance with Central and State Government advisories to contain the pandemic, which includes closing of manufacturing facilities and adopting work from home policy for employees, wherever possible, across locations.

Given the uncertainty of quick turnaround to normalcy, post lifting of the lock down, the Company has carried out a comprehensive assessment of possible impact on its business operations, financial assets, contractual obligations and its overall liquidity position, based on the internal and external sources of information and application of reasonable estimates, the Company does not foresee any significant incremental risk to the recover ability of its assets or in meeting its financial obligations over the foreseeable future, given early and required steps taken to contain, protect and mitigate the exposure.

Pursuant to the relaxed guidelines, the Company is carrying its manufacturing operations as allowed in strict compliance. Supply chain and product sale activities have resumed, most of the staff is coming and working in office according to local government instructions and also working from home as and when required.

Since the situation is continuously evolving, the impact assessed may be different from the estimates made as at the date of approval of these financial statements and Company will continue to monitor any material changes arising due to the impact of this pandemic on financial and operational performance of the Company and take necessary measures to address the situation.

19. Risk Management(a) Credit risk arises from cash and cash equivalents:

Contractual cash flows of debt investments carried at amortised cost, deposited with banks, credit exposures from customers including outstanding receivables and other financial instruments. Trade receivables and contract assets. The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets. The Company has obtained advances and security deposits from its customers & distributors, which mitigate the credit risk to an extent.

(b) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount

of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

20. Financing arrangements (i) Financing arrangements

The Company had access to the following borrowing facilities at the end of the reporting period:

23. Fair value of financial assets and liabilities

Fair valuation techniques: The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant available data.

The fair values of the financial assets and liabilities represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash, bank and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Long-term fixed-rate and variable-rate loans/ borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair

value of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowings, fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the Company''s borrowings rate. Risk of nonperformance for the company is considered to be insignificant in valuation.

3) The fair values of derivatives, if any, are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity, and market parameters such as interest rates, foreign exchange rates, and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement, and inputs thereto are readily observable from actively quoted market prices. Management evaluates the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

26. Sensitivity Analysis

The Company''s exposure to the risk of changes in market interest rates relates primarily to long term debt. The company don''t have any long term borrowings except vehicle loans, therefore sensitivity analysis is not given. As regards working capital borrowing, the company has floating rate of interest, and also has very low exposures to borrowings, therefore sensitivity is very less, hence analysis is not given.

(i) Commodity price risk and sensitivity

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The company uses prevailing market price method to buy the material, as inventory of raw material and some times for procurement of material, majority of transactions have short term fixed price contract. The imported portion of raw material is not significant, therefore forward contract is not used.

27. Valuation of Property Plant & Equipment, intangible asset

The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year. However, patents got registered or in the process of registration, developed by inhouse R&D, has been capitalised at the cost incurred in development of such patent and technology.

28. Utilisation of borrowed funds and share premium

No funds 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 entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

29. Title deeds of immovable properties

The title deeds of all the immovable properties, as disclosed in note 1 to the financial statements, are held in the name of the company.

30. Event occurring after balance sheet date

There is no reportable event happened after balance sheet date and up to finalization of balance sheet except:

The Board of directors have recommended final dividend of 6% i.e. '' 0.60 per equity share, for the financial year 2022-23, which is subject to the approval of the shareholders in the ensuing annual general meeting.


31. (i) Compliance with number of layers ofcompanies

The Company has complied with the number of layers prescribed under the Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

(ii) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(iii) During the year, the Company has been sanctioned working capital limits in excess of '' 5 crores, in aggregate, from banks. The Company has filed quarterly returns or statements with such banks, which are in agreement with the audited books of account.

32. Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Notes to the Standalone Financial Statements for the year ended 31 March 2023.

33. Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

34. Relationship with struck off companies

The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

35. Registration of charges or satisfaction with Registrar of Companies (ROC)

There are no charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

36. Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of account.

37. Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

38. Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.

39. The Financial Statements were authorised for issue by the directors on 29th May, 2023.


Mar 31, 2018

Note 1

Significant Accounting Policies and other Disclosures on Financial Statements

Corporate Information

United Drilling Tools Ltd. (“ the company”) is a listed entity incorporated in India.

The address of it’s registered Office and principal place of business are disclosed in the introduction to the annual report.

2. Impairment of financial assets

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument) For trade receivables Company applies ‘simplified approach’ which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

(ii) Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

(iii) Derivative and Financial Instrument and Hedge Accounting

The Company uses derivative financial instruments such as currency swaps and forwards contracts to mitigate the risk of changes in exchange rates. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are also subsequently measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss, except for the effective portion of cash flow hedges which is recognised in Other Comprehensive Income and later to Statement of Profit and Loss when the hedged item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial assets or non-financial liability.

Hedges that meet the criteria for hedge accounting are accounted for as follows:

a) Cash flow hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments to mitigate the risk of movement in foreign exchange rates for foreign exchange exposure on highly probable future cash flows attributable to a recognised asset or liability or forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in the cash flow hedging reserve being part of other comprehensive income. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the underlying transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the occurrence of the underlying transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified in the Statement of Profit and Loss.

b) Fair Value Hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments to mitigate the risk of change in fair value of hedged item due to movement in foreign exchange rates.

Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used and is amortised to Statement of Profit and Loss over the period of maturity.

C. Critical Accounting Judgements and key Sources of Estimation Uncertainty

The preparation of company’s financial statements in conformity with Ind AS require management to make judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Uncertainty about these assumptions and estimates could result in outcomes that require material adjustments to the carrying value of the assets or liabilities affected in future period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable.

1. Depreciation / Amortisation and useful lives of Property, Plant and Equipment / Intangible Assets Tangible Assets

Depreciation on Property, Plant and Equipment is provided on useful life of the assets which is taken as specified in Schedule II to the Companies Act, 2013 and depreciation is charged on Written Down Value method after taking into residual value of the assets in order to determine the amount of depreciation / amortization to be recorded during reporting period.

Intangible Assets

The intangible asset is amortized over a period of estimated useful life of asset, taking into account of anticipated technological changes. The depreciation / amortization for the future period is revised if there are significant changes from previous estimates.

2. Recoverability of trade receivable Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

3. Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

D. First Time Adoption of Ind as

The Company has adopted Ind AS with effect from 1st April 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

a) Exemptions from retrospective application

(i) Business combination exemption

The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103, “Business Combinations” to business combinations consummated prior to April 1, 2015 (the “Transition Date”), pursuant to which goodwill/capital reserve arising from a business combination has been stated at the carrying amount prior to the date of transition under Indian GAAP. The Company has also applied the exemption for past business combinations to acquisitions of other corporate consummated prior to the Transition Date.

(ii) Fair value as deemed cost exemption

The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value at the transition date.

E. Other Notes on Financial Statements

1) Contingent Liabilities not provided for :

(i) Counter guarantees against Bank guarantees given by banks Rs. 23,14,62,911/- (Pr. Yr. Rs. 10,33,89,373/-).

(ii) Letter of Credit opened by Banks Rs. 1,42,56,886/- (Pr. Year Nil.)

(iii) Bill discounted by bank Rs. NIL ( Pr. Yr. Nil)

2) (i) In the opinion of the Board the Current Assets, Loans and Advances are approximately of the value as stated in Financial Statements, if realized in the ordinary course of business.

(ii) The provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required.

(iii) Balances of Debtors, Creditors and Loan and Advances are subject to confirmation.

Previous Year’s figures has been regrouped and rearranged wherever necessary.

3) Preferential Share holders in their meeting held on 17.04.2017 has waived their right to claim the dividend on preferential share for the period from 1.4.2017 to till the date of redemption, i.e. any dividend right for the financial Year 2017-18. Therefore provision for dividend on preferential shares for the year has not been made and dividend not declared.

4) Employee Benefit Obligations

a) Defined Contribution Plan

The Company makes contributions towards Employees Provident Fund and Family Pension Fund for qualifying employees. The Fund is operated by the Regional Provident Fund Commissioner. The amount of contribution is recognized as expense for defined contribution plans. The contribution of PF is Rs. 25,19,078/- ( Pre. Yr. Rs. 24,00,512/- )

b) Defined Benefit Plan

The Company make payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary (last drawn salary) payable for each completed year of service or part thereof in excess of six months as per provisions of Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years of service. The Gratuity liability is provided in the books amounting to Rs. 60,15,557/- ( Previous Year Rs. 42,94,960/- ) on actuarial liability basis as on the date of balance sheet. It is non funded.

The estimates of future salary increase; considered in actuarial valuation, take account of inflation, seniority, promotions and other relevant factors such as supply and demand in the employment market.

The discount rate is based on prevailing market yields of Indian Government Bonds, as at the balance sheet date, consistent with the currency and estimated term of the post employment benefit obligations.

c) Other Long Term Employee Benefits Liability of Leave Encashment is provided in the books of ac count amounting to Rs. 23,51,340/- (Previous Year Rs. 17,73,619/-) on actual calculation basis as on balance sheet date. The liability is paid annually or during the year therefore actuarial valuation is not required. It is non funded.

5) The figures for the previous year have been regrouped and rearranged wherever found necessary to make them comparable with those of current year.

6) (i) The company is doing further research in enhanced recovery of oil from low performing oil well globally, the expenditure incurred in debited to intangible assets under development.

(ii) The provision for taxation has been made after considering the benefits available to EOU and SEZunits under Income Tax Act.

7) Financial Derivative Instruments

The Company don’t uses Forward Exchange Contracts to hedge its exposure in foreign currency. The information on derivative instruments and foreign currency exposure are as follows:

8 ) Segment Reporting

(i) The Company is engaged in only one business segment hence no business segment reporting required.

(ii) Other Segment reporting on the basis of Local Currency and Foreign Currency segments as below:

9) Related Party Disclosure

Transactions with related party as identified by the management in accordance with Accounting Standard 18 “ Related Party Disclosures” issued by The Institute of Chartered Accountants of India are as follows:-

Note : The amount spent during the financial year is little lower then required, being the amount was identified but could not be disbursed. The same shall be spend in the next Financial year.

10. There is no principal and interest due to micro and small enterprises. This information has been determined to the extent such parties have been identified on the basis of the information available with the company and the same has relied upon by the auditors.


Mar 31, 2016

1. B NOTES ON FINANCIAL STATEMENTS

1) Contingent Liabilities not provided for:

i. Counter guarantees against Bank guarantees given by banks Rs. 10, 73,66,544/- (Pr. Yr. Rs. 7,03,80,310/-)

ii. Bill discounted by bank Rs. NIL (Pr. Yr. Nil) .

2) (i) In the opinion of the Board the Current Assets, Loans and Advances are approximately of the value as stated in Financial Statements, if realized in the ordinary course of business.

(ii) The provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required.

(iii) Balances of Debtors, Creditors and Loan and Advances are subject to confirmation.

(iv) Previous Year''s figures has been regrouped and rearranged wherever necessary.

3) CORPORATE SOCIAL RESPONSIBILITY

(a) Gross amount required to be spent by the Company during the year was Rs. 21.02 Lacs.

(b) Amount spent during the year and charged to Statement of profit & Loss Rs. 14.47 Lacs.

4) Preferential Share holders in their meeting held on 11-02-2016 has waived their right to claim the dividend on preferential share for the period from 1.4.2015 to 31.3.2016, i.e. for financial Year 2015-16. Therefore provision for dividend on preferential shares for the year has not been made and dividend not declared.

5) Employee Benefit Obligations

a) Defined Contribution Plan

The Company makes contributions towards Employees Provident Fund and Family Pension Fund for qualifying employees. The Fund is operated by the Regional Provident Fund Commissioner. The amount of contribution is recognized as expense for defined contribution plans. The contribution of PF is Rs. 20, 09,947/- ( Pre. Yr. Rs. 18, 29,331/-)

b) Defined Benefit Plan

The Company make payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary (last drawn salary) payable for each completed year of service or part thereof in excess of six months as per provisions of Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years of service. The Gratuity liability is provided in the books amounting to Rs. 40, 01,219/- (Previous Year Rs. 11, 60,267/- ) on actuarial liability basis as on the date of balance sheet. It is non funded.


Mar 31, 2015

1) Contingent Liabilities not provided for :

i. Counter guarantees against Bank guarantees given by banks Rs.6,95,59,178/- (Pr. Yr. Rs.3,06,01,470/-).

ii. Bill discounted by bank Rs.NIL (Pr. Yr. Nil) .

2) (i) In the opinion of the Board the Current Assets, Loans and Advances are approximately of the value as stated in Financial Statements, if realized in the ordinary course of business.

(ii) The provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required.

(iii) Balances of Debtors, Creditors and Loan and Advances are subject to confirmation.

(iv) Previous Year's figures has been regrouped and rearranged wherever necessary.

3) In note 18 purchases include Rs.9,67,90,835/- (previous years Rs.102,923,234/-) purchases of trading materials.

The deferred tax liability required at the year end is Rs.1,08,35,043/-, the difference between opening liability and closing liability is charged to Profit & Loss a/c (liability) Rs.75,39,693/- after adjustment of the effect of merger of MSEPL.

5) Preferential Share holders in their meeting held on 09-11-2013 has waived their right to claim the dividend on preferential share for the period from 1.4.2013 to 31.3.2014, i.e. for financial Year 2013-14. Therefore provision for dividend on preferential shares for the year has not been made and dividend not declared.

6) Scheme of Amalgamation

I. A Scheme of Amalgamation was framed under the provisions of sections 391 and 394 of the Companies Act, 1956, and other applicable provisions, if any, for amalgamation of Macro Steel Engineers Pvt. Ltd. (MSEPL) (the Transferor Company) with United Drilling Tools Ltd (the Transferee Company).

II. Salient features of the Scheme of Amalgamation are as follows:

a. All assets and liabilities including Income Tax and all other statutory liabilities, if any, of the Transferor Company will be transferred to and vest in the Transferee Company.

b. All the employees of the Transferor Company in service on the Effective Date, if any, shall become the employees of the Transferee Company on and from such date without any break or interruption in service and upon terms and conditions not less favorable than those subsisting in the Transferor Company on the said date.

c. Appointed Date for amalgamation is 1st Oct. 2013.

d. The Transferee Company will issue 2 (Two) Equity Shares of Rs.10 each, credited as fully paid-up, of the Transferee Company - United Drilling Tools Ltd. for every 9 (nine) Equity Shares of Rs.10 each held in the Transferor Company- Macro Steel Engineers Pvt. Ltd.

e. Any fraction of share arising out of the aforesaid share exchange process, if any, will be rounded off to nearest whole number.

III. The aforesaid Scheme of Amalgamation was approved by the Hon'ble High Court of Delhi vide its order dated 1st May, 2014 and revised 25th Day of November 2014. The Scheme became effective on 25th July, 2014, being the date of filing of the High Court Order with the ROC. Since the Scheme is operative from the Appointed Date, 1st Oct., 2013, effect of the scheme of merger has been given in the present audited accounts of financial year 2013-14. Accordingly, the present audited accounts has been made incorporating the year end balance i.e. balances as on 31.3.2014 of transferor company MSEPL in the Balance Sheet of the Transferee Company including the balances of profit & loss a/c and reserves.

IV. The Transferee Company is engaged in manufacturing of drilling tools and equipments for oil drilling & exploration industry and other related activities. Whereas, prior to the Scheme of Amalgamation, the Transferor Company was engaged in manufacturing and Research & Development of Slickline and electricline units, wire line winches and components of high tech equipments for oil drilling & exploration and production industry .

V. In terms of the Scheme of Amalgamation, the Transferee Company will issue 48,22,222 Equity Shares of Rs.10 each, credited as fully paid-up, to the Shareholders of the Transferor Company, in exchange of 100% Equity Share Capital of the Transferor Company after cancellation of cross holding, if any, which is Nil.

The aforesaid Shares to be issued by the Transferee Company have been disclosed under the head "Shares to be issued pursuant to the Scheme of Amalgamation" in the Balance Sheet.

VI. Amalgamation of Transferor Company with the Transferee Company has been accounted for under the Pooling of Interests Method as per Accounting Standard-14 (AS-14) as prescribed under the Companies (Accounting Standards) Rules, 2006. Accordingly, all the assets, liabilities and reserves of each of the Transferor Company have been recorded in the Company's books at their existing carrying amounts and in the same form. Inter-company balances, if any, stand cancelled.

VII. The following accounting treatment has been given to some of the issues pertaining to the Scheme:

Deficit of Rs.16,87,77,780 arising out of amalgamation being difference between pre-merger paid up Share Capital of the Transferor Company and paid-up value of new Equity to be issued by the Transferee Company on amalgamation, has been adjusted in the Capital Reserve Account in the books of the Transferee Company.

7) Employee Benefit Obligations

a) Defined Contribution Plan

The Company makes contributions towards Employees Provident Fund and Family Pension Fund for qualifying employees. The Fund is operated by the Regional Provident Fund Commissioner. The amount of contribution is recognized as expense for defined contribution plans. The contribution of PF is Rs.11,03,820/- (Pre. Yr. Rs.5,87,326/-)

b) Defined Benefit Plan

The Company make payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary (last drawn salary) payable for each completed year of service or part thereof in excess of six months as per provisions of Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years of service. The Gratuity liability is provided in the books amounting to Rs.11,09,917/- (Previous Year Rs.8,14,657/-) on actuarial liability basis as on the date of balance sheet. It is non funded.

c) Other Long Term Employee Benefits

Liability of Leave Encashment is provided in the books of account amounting to Rs.1,45,736/- (Previous Year Rs.1,54,630/-) on actual calculation basis as on balance sheet date. It is non funded.

8) The figures for the previous year have been regrouped and rearranged wherever found necessary to make them comparable with those of current year.

9) (i) The company has not provided depreciation on Intangible Assets acquired on amalgamation of MSEPL for which company is doing further research to adapt the technology in enhanced recovery of oil from low performing oil well globally.

(ii) The provision for taxation has been made after considering the benefits available to EOU and SEZ units under Income Tax Act.

10. DISCLOSURES UNDER ACCOUNTING STANDARDS (A) SEGMENT REPORTING

(a) Primary Segment Reporting

(i) The Company is engaged in only one business segment hence no segment reporting required.


Mar 31, 2013

1) Contingent Liabilities not provided for:

i. Counter guarantees against Bank guarantees given by banks Rs. 3,06,01,470/- ( Pr. Yr. Rs. 2,59,31,062/-)

2) In the opinion of the Board the Current Assets, Loans and Advances are approximately of the value as stated in Financial Statements, if realized in the ordinary course of business. The provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required.

3) Balances of Debtors, Creditors and Loan and Advances are subject to confirmation.

4) Preferential Share holders in their meeting held on 18.03.2013 has waived their right to claim the dividend on preferential share for the period from date of issue to 31.3.2013, i.e. for financial Year 2012-13. Therefore provision for dividend on preferential shares has not been made and dividend not declared.

5) Employee Benefit Obligations

a) Defined Contribution Plan

The Company makes contributions towards Employees Provident Fund and- Family Pension Fund for qualifying employees. The Fund is operated by the Regional Provident Fund Commissioner. The amount of contribution is recognized as expense for defined contribution plans. The contribution of PF is Rs. 5,87,326/- ( Pre. Yr. Rs. 6,68,405/-)

b) Defined Benefit Plan

The Company make payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary (last drawn salary) payable for each completed year of service or part thereof in excess of six months as per provisions of Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years of service. The Gratuity liability is provided in the books amounting to Rs. 8,14,657/- ( Previous Year Rs. 9,14,872/-) on actual liability basis as on the date of balance sheet. It is non funded.

c) Other Long Term Employee Benefits

Liability of Leave Encashment is provided in the books of account amounting to Rs. 1,54,630/- (Previous Year Rs. 1,90,685/-) on actual calculation basis as on balance sheet date. It is non funded.

6) The figures for the previous year have been regrouped and rearranged wherever found necessary to make them comparable with those of current year.

6A) The company has not provided depreciation on Intangible Assets acquired on amalgamation as the company is doing further research to adapt the technology in enhanced recovery of oil from low performing oil well globally.

7) Financial Derivative Instruments

8. DISCLOSURES UNDER ACCOUNTING STANDARDS

(A) SEGMENT REPORTING

(a) Primary Segment Reporting (By Business Segments)

(i) The Company is engaged in engineering segments only.


Mar 31, 2012

1) Contingent Liabilities not provided for :

i. Counter guarantees against Bank guarantees given by banks Rs. 2,59,31,062/- ( Pr. Yr. Rs. 62,36,515/-)

2) In the opinion of the Board the Current Assets, Loans and Advances are approximately of the value as stated in Financial Statements, if realized in the ordinary course of business. The provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required.

3) Balances of Debtors, Creditors and Loan and Advances are subject to confirmation.

4) Scheme of Amalgamation

I. A Scheme of Amalgamation was framed under the provisions of sections 391 and 394 of the Companies Act, 1956, and other applicable provisions, if any, for amalgamation of P & K Hightech Systems Pvt Ltd (the Transferor Company) with United Drilling Tools Ltd (the Transferee Company).

A. Salient features of the Scheme of Amalgamation are as follows:

a. All assets and liabilities including Income Tax and ail other statutory liabilities, if any, of the Transferor Company will be transferred to and vest in the Transferee Company.

b. All the employees of the Transferor Company in service on the Effective Date, if any, shall become the employees of the Transferee Company on and from such date without any break or interruption in service and upon terms and conditions not less favorable than those subsisting in the Transferor Company on the said date.

c. Appointed Date for amalgamation will be 1st April, 2011.

d. The Transferee Company will issue 79 (seventy nine) Equity Shares of Rs. 10 each, credited as fully paid-up, of the Transferee Company for every 200 (two hundred) Equity Shares of Rs. 10 each held in the Transferor Company- P & K Hightech Systems Pvt Ltd.

e. The Transferee Company will issue 115 (one hundred fifteen) 12% Cumulative Compulsory Redeemable Preference Shares of Rs. 100 each, credited as fully paid-up, of the Transferee Company, for every 1,000 (one thousand) Equity Shares of Rs. 10 each held in the Transferor Company- P & K Hightech Systems Pvt Ltd.

f. Any fraction of share arising out of the aforesaid share exchange process, if any, will be rounded off to nearest whole number.

III. The aforesaid Scheme of Amalgamation was approved by the Hon'ble High Court of Delhi vide its order dated 6th March, 2012. The Scheme became effective on 6th June, 2012, being the date of filing of the High Court Order with the ROC. Since the Scheme is operative from the Appointed Date, 1sl April, 2011, it has been given effect to in the present audited accounts.

Accordingly, the present audited accounts are consisting of financial figures of the Transferee Company as well as financial figures of the Transferor Company.

IV. The Transferee Company is engaged in manufacturing of drilling tools and equipments for oil drilling & exploration industry and other related activities. Whereas, prior to the Scheme of Amalgamation, the Transferor Company was engaged in manufacturing of gas lift systems and other high tech equipments for oil drilling & exploration industry and other related activities.

V. In terms of the Scheme of Amalgamation, the Transferee Company will issue 34,38,791 Equity Shares of Rs. 10 each, credited as fully pafd up, and 10,01,167 12% Cumulative Compulsory Redeemable Preference Shares of Rs. 100 each, credited as fully paid-up, to the Shareholders of the Transferor Company, in exchange of 100% Equity Share Capital of the Transferor Company after cancellation of cross holding, if any.

The aforesaid Shares to be issued by the Transferee Company have been disclosed under the head "Shares to be issued pursuant to the Scheme of Amalgamation" in the Balance Sheet.

VI. Amalgamation of Transferor Company with the Transferee Company has been accounted for undar the Pooling of Interests Method as per Accounting Standard-14 (AS-14) as prescribed under the Companies (Accounting Standards) Rules, 2006. Accordingly, all the assets, liabilities and reserves of each of the Transferor Company have been recorded in the Company's books at their existing carrying amounts and in the same form. Inter-company balances, if any, stand cancelled.

VII. The following accounting treatment has been given to some of the issues pertaining to the Scheme:

Deficit of Rs. 4,74,46,610 arising out of amalgamation being difference between pre-merger paid up Share Capital of the Transferor Company and paid-up value of new Equity and Preference Shares to be issued by the Transferee Company on amalgamation, has been adjusted in the Securities Premium Account in the books of the Transferee Company.

5) Employee Benefit Obligations

a) Defined Contribution Plan

The Company makes contributions towards Employees Provident Fund and Family Pension Fund for qualifying employees. The Fund is operated by the Regional Provident Fund Commissioner. The amount of contribution is recognized as expense for defined contribution plans. The contribution of PF is Rs. 6,68,405/- ( Pre.Yr. Rs. 4,08,155/-)

b) Defined Benefit Plan

The Company make payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary (last drawn salary) payable for each completed year of service or part thereof in excess of six months as per provisions of Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years of service. The Gratuity liability is provided in the books amounting to Rs. 9,14,872/- ( Previous Year Rs 9,18,373/- ) on actual liability basis as on the date of balance sheet. It is non funded.

c) Other Long Term Employee Benefits

Liability of Leave Encashment is provided in the books of account amounting to Rs. 1,90,685/ - (Previous Year Rs. 1,88,154/-) on actual calculation basis as on balance sheet date. It is non funded.

6) Since the Scheme of Amalgamation has been given effect to in the current year accounts, the current year's figures are not comparable with that of previous year.The figures for the previous year have been regrouped and rearranged wherever found necessary to make them comparable with those of current year.

6A) The company has not provided depreciation on Intangible Assets acquired on amalgamation as the company is doing further research to adapt the technology in enhanced recovery of oil from low performing oil well globally.


Mar 31, 2010

1) Contingent Liabilities not provided for :

i. Counter guarantees against Bank guarantees given by banks Rs. 1,41,94,482/- ( Pr. Yr. Rs. 1,07,06,295/- )

2) In the opinion of the Board the Current Assets, Loans and Advances are approximately of the value as stated in Financial Statements, if realized in the ordinary course of business. The provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required.

3) Balances of Debtors, Creditors and Loan and Advances are subject to confirmation.

4) Employee Benefit Obligations

a) Defined Contribution Plan

The Company makes contributions towards Employees Provident Fund and Family Pension Fund for qualifying employees. The Fund is operated by the Regional Provident Fund Commissioner. The amount of contribution is recognized as expense for defined contribution plans.

b) Defined Benefit Plan

The Company make payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary (last drawn salary) payable for each completed year of service or part thereof in excess of six months as per provisions of Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years of service. The Gratuity liability is provided in the books amounting to Rs. 10,33,752/- ( Previous Year Nil) on actual liability basis as on the date of balance sheet. It is non funded.

c) Other Long Term Employee Benefits

Liability of Leave Encashment is provided in the books of account amounting to Rs. 1,21,000/- (Previous Year - Nil) on actual calculation basis as on balance sheet date. It is non funded.

5) The figures for the previous year have been regrouped and rearranged wherever found necessary to make them comparable with those of current year.

6. DISCLOSURES UNDER ACCOUNTING STANDARDS (A) SEGMENT REPORTING

(a) Primary Segment Reporting (By Business Segments)

(i)The Company is engaged in engineering segments only.

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