You are here » Home » Companies » Company Overview » Oil Country Tubular Ltd

Oil Country Tubular Ltd.

BSE: 500313 Sector: Metals & Mining
NSE: OILCOUNTUB ISIN Code: INE591A01010
BSE 00:00 | 18 Oct 6.97 0.09
(1.31%)
OPEN

7.50

HIGH

7.50

LOW

6.70

NSE 00:00 | 18 Oct 6.85 0.10
(1.48%)
OPEN

6.60

HIGH

7.10

LOW

6.45

OPEN 7.50
PREVIOUS CLOSE 6.88
VOLUME 2514
52-Week high 20.01
52-Week low 5.19
P/E
Mkt Cap.(Rs cr) 31
Buy Price 6.97
Buy Qty 900.00
Sell Price 7.25
Sell Qty 200.00
OPEN 7.50
CLOSE 6.88
VOLUME 2514
52-Week high 20.01
52-Week low 5.19
P/E
Mkt Cap.(Rs cr) 31
Buy Price 6.97
Buy Qty 900.00
Sell Price 7.25
Sell Qty 200.00

Oil Country Tubular Ltd. (OILCOUNTUB) - Auditors Report

Company auditors report

To the Members of OIL COUNTRY TUBULAR LIMITED

Report on the Ind AS Financial Statements

I have audited the accompanying Ind AS financial statements of OILCOUNTRY TUBULAR LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2018 the Statement of Profit and Loss (including other comprehensive income)the Statement of Cash Flows and the statement of changes in Equity for the year then endedon that date and a summary of significant accounting policies and other explanatoryinformation (herein after referred to as "Ind AS financial statements").

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134 (5) of the Companies Act 2013 ("the Act") with respect topreparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes of equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards ("Ind AS")specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on these Ind AS financialstatements based on my audit.

I have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

I conducted my audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that I comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe Ind As financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial controls relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Ind- AS financial statements.

I believe that the audit evidence I have obtained is sufficient andappropriate to provide a basis for my audit opinion on the Ind AS financial statements.

Opinion

In my opinion and to the best of my information and according to theexplanations given to me the Ind-AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind-AS of the financialposition of the Company as at March 31 2018 and its financial performance including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issuedby the Central Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to the "Order") and on the basis of such checks of thebooks and records of the Company as I considered appropriate and according to theinformation and explanations given to me I give in the Annexure 1 a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143 (3) (i) of the Companies Act 2013 Igiven in Annexure 2 the report on Internal Financial Controls over Financial Reporting.

3. As required by section 143(3) of the Act we report that:

a. I have sought and obtained all the information and explanationswhich to the best of my knowledge and belief were necessary for the purpose of my audit.

b. In my opinion proper books of account as required by law have beenkept by the Company so far as it appears from my examination of those books.

c. The Balance Sheet Statement of Profit and Loss (including othercomprehensive income) the statement of cash flows and the statement of changes in equitydealt with by this Report are in agreement with the books of account.

d. In my opinion the aforesaid Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. On the basis of written representations received from the Directorsas on March 31 2018 and taken on record by the Board of Directors none of the directorsare disquali ed as on March 31 2018 from being appointed as a director in terms ofSection 164(2) of the Act.

f. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in myopinion and to the best of my information and according to the explanations given to me;

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Ind AS financial statements

ii. In my opinion and as per the information and explanations providedto me the Company has not entered into any long-term contracts including derivativecontracts for which there were any for material foreseeable losses and

iii. There has been no delay in transferring the amounts required tobe transferred to the Investor Education and Protection Fund by the Company.

For G NAGENDRASUNDARAM & CO.

Chartered Accountants FRN 005355S

G NAGENDRASUNDARAM

Proprietor M.No.050283

ANNEXURE - 1 TO THE INDEPENDENT AUDITORS' REPORT:

(Referred to in Paragraph 1 under section ‘Report on Other Legaland Regulatory Requirements' of my report of even date)

1.1. The Company is maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets.

1.2. All the fixed assets have been physically veri ed by themanagement at reasonable intervals and no material discrepancies were noticed on such verication.

1.3. All the title deeds of the immovable properties are held in thename of the Company.

2. The inventories have been physically veri ed at reasonable intervalsby the management and no material discrepancies were noticed on such veri cation.

3 According to the information and explanations given to me theCompany has not granted any loans secured or unsecured to companies rms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Companies Act 2013. Accordingly the sub-clauses (a) (b) and (c) are notapplicable to the company.

4. According to the information and explanations given to me theinvestment made by the Company is in compliance with the provisions of Section 186 of theCompanies Act 2013. The Company has not granted any loans or given any guarantee orsecurity which are covered under the provisions of Section 185 and 186 of the CompaniesAct 2013.

5. According to the information and explanations given to me theCompany has not accepted any deposits in terms of the directives issued by Reserve Bank ofIndia and the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules framed there under.

6. I have broadly reviewed the cost records maintained by the Companypursuant sub-section (1) of Section 148 of the Companies Act 2013 and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained.

7.1 According to the information and explanations given to me thecompany is generally regular in depositing undisputed statutory dues including providentfund employees state insurance income tax sales tax service tax duty of customs dutyof excise value added tax goods and service tax cess and other statutory dues as areapplicable with the appropriate authorities.

According to the information and explanations given to me there are noarrears of outstanding statutory dues except service tax provision of Rs.16066284 as atthe last day of the financial year under audit for a period of more than six months fromthe date they became payable.

7.2 According to the information and explanations given to me thereare no dues of income tax or sales tax or service tax or duty of customs or duty of exciseor value added tax which have not been deposited on account of dispute except thefollowing:

Nature of the Statute & Nature of due

Amount

Period Forum where litigation
is pending
Interest expenditure disallowed by Income Tax Department u/s 14A of the Income Tax Act 1961 read with Rule 8D of the Income tax Rules 1962 disputed by the Company.

5055646

Assessment Year: 2014-15 CIT (Appeal) Hyderabad- 4
Central Excise Demand raised by the Central Excise Department in respect of process amounting to ‘manufacture' and applicability of duty thereon in respect of certain products against which an appeal has been made before CESTAT Hyderabad.

72245173

From 01.04.2007 to 31.03.2016 CESTAT Hyderabad

8. According to the information and explanations given to me theCompany has defaulted in payment of overdue in working capital loans to the banks asreported in Note No.22 and interest accrued and due as reported in Note No.24.

9. During the year under review the Company has not raised any moneyby way of initial public offer further public offer or term loans and hence thereporting requirement on the purpose of application of the same is not warranted.

10. According to the information and explanations given to me and basedupon the audit procedures performed by me no fraud by the Company or on the Companycommitted by its of cers or employees has been noticed or reported during the year.

11. According to the information and explanations given to me themanagerial remuneration paid or provided during the year is in compliance with theprovisions of Section 197 read with Schedule V of the Companies Act 2013.

12. As the Company is not a Nidhi Company in terms of the provisions ofthe Companies Act 2013 read with Nidhi Rules 2014 the matters to be reported underclause (xii) are not applicable.

13. The Company has complied with the provisions of Section 177 and 188of the Companies Act. 2013 wherever applicable. In my opinion the details as required bythe applicable accounting standards have been disclosed in the financial statements forthe year under review.

14. According to the information and explanations given to me theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review. Hence reporting requirementon compliance with Section 42 of the Companies Act 2013 and purpose of application of thefunds so raised is not applicable.

15. According to the information and explanations given to me theCompany has not entered into any non-cash transactions with directors or persons connectedwith him and hence reporting requirement on compliance with the provisions of Section 192of the Companies Act 2013 is not applicable.

16. According to the information and explanations given to me and in myopinion the Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For G NAGENDRASUNDARAM & CO.

Chartered Accountants FRN 005355S

G NAGENDRASUNDARAM

Proprietor M.No.050283

Place : Hyderabad Date : April 26th 2018

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT:

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act"):

I have audited the internal financial controls over financial reportingof OIL COUNTRY TUBULAR LIMITED ("the Company") as of March 31 2018 inconjunction with my audit of the financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

My responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on my audit.

I conducted my audit in accordance with the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting (the "Guidance Note") andthe Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that I comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

My audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. My audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

I believe that the audit evidence I have obtained is sufficient andappropriate to provide a basis for my audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

3) Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In my opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2018 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For G NAGENDRASUNDARAM & CO.

Chartered Accountants FRN 005355S

G NAGENDRASUNDARAM

Proprietor M.No.050283

Place : Hyderabad Date : April 26th 2018