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Oil Country Tubular Ltd.

BSE: 500313 Sector: Metals & Mining
NSE: OILCOUNTUB ISIN Code: INE591A01010
BSE 00:00 | 25 Jan 5.79 -0.15
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5.79

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NSE 00:00 | 25 Jan 5.45
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5.45

HIGH

5.45

LOW

5.45

OPEN 5.79
PREVIOUS CLOSE 5.94
VOLUME 55
52-Week high 6.91
52-Week low 2.87
P/E
Mkt Cap.(Rs cr) 26
Buy Price 5.92
Buy Qty 43.00
Sell Price 5.94
Sell Qty 560.00
OPEN 5.79
CLOSE 5.94
VOLUME 55
52-Week high 6.91
52-Week low 2.87
P/E
Mkt Cap.(Rs cr) 26
Buy Price 5.92
Buy Qty 43.00
Sell Price 5.94
Sell Qty 560.00

Oil Country Tubular Ltd. (OILCOUNTUB) - Auditors Report

Company auditors report

Tothe Members of OILCOUNTRYTUBULAR LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of OILCOUNTRYTUBULAR LIMITED (the Company') which comprise the Balance Sheet as at 31st March 2019 the Statement of Profit and Loss (including Other Comprehensive Income) the Statement of Changes in Equity and statement of Cash Flows for the year then ended and Notes to the Financial Statements including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us the aforesaid standalone financial statements give the information required by the Companies Act 2013 in the mannerso required and give a true and fairview in conformity with the IndianAccounting Standards prescribed under section 133 of theAct read with the Companies (IndianAccounting Standards) Rules 2015 as amended (Ind AS) and other accounting principles generally accepted in India of the state of affairs of the Company as at March 312019 and its loss and total comprehensive income changes in equity and its cash flows forthe year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Key Audit MatterAuditor's Response
The capacity utilization of the Company is low during the year under audit due to non-availability of sufficient working capital funds resulting in operational losses.To conclude on whether the low operations would have any impact on the company as a going concern nor any impairment arises in future we have reviewed the management representations the sales orders from customers on hand to execute correspondence with banks in respect of one time settlement company's future business plan/financial projections in detail including its plan to sell processing plant-2 for which necessary compliances have been complied with to augment working capital requirements.

Other Information

The Company's Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis Director's Report including Annexures to Director's Report and Shareholder's Information but does not include the standalone financial statements and our auditor's report thereon. The board reports including Management Discussion and Analysis report is expected to be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the Director's reports including Management Discussion and Analysis report if we conclude that there is a material misstatement therein we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position financial performance total comprehensive income changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Ind AS specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error. In preparing the financial statements the management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless the management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations orthe override of internal control.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may cause the Company to cease to continue as a going concern.

 Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by 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 the books and records of the Company as we considered appropriate and according to the information and explanations given to us we give in the Annexure-1 a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

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

d) In our opinion the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of written representations received from the Directors as on March 31 2019 and taken on record by the Board of Directors none of the directors is disqualified as on March 312019 from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate Report in Annexure -2.

g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16) of the Act as amended: In our opinion and to the best of our information and according to the explanations given to us the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) 2014 in our opinion and to the best of our information and according to the explanations given to us;

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

ii. In our opinion and as per the information and explanations provides to us the Company has not entered into any long-term contracts including derivative contracts requiring provision under applicable laws or accounting standards for material foreseeable losses and

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

For G NAGENDRASUNDARAM & CO.
Chartered Accountants
FRN 005355S
G NAGENDRASUNDARAM
Place: HyderabadPartner
Date : May 23 2019M.No.050283

ANNEXURE -1 TO THE AUDITORS' REPORT:

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

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

1.2. All the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

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

2. The inventories have been physically verified at reasonable intervals by the management and no material discrepancies were noticed on such verification.

3 According to the information and explanations given to us the Company has not granted any loans secured or unsecured to companies firms Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act 2013. Accordingly the sub-clauses (a) (b) and (c) are not applicable to the company.

4. According to the information and explanations given to us the investment made by the Company is in compliance with the provisions of Section 186 of the Companies Act 2013. The Company has not granted any loans or given any guarantee or security which are covered underthe provisions of Section 185 and 186 of the Companies Act 2013.

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

6. We have broadly reviewed the cost records maintained by the Company pursuant sub-section (1) of Section 148 of the Companies Act 2013 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

7.1 According to the information and explanations given to us the company is generally regular in depositing undisputed statutory dues including provident fund employees state insurance income tax sales tax service tax duty of customs duty of excise value added tax goods and service tax cess and other statutory dues as are applicable with the appropriate authorities. According to the information and explanations given to us there are no arrears of outstanding statutory dues as at the last day of the financial year under audit for a period of more than six months from the date they became payable.

7.2 According to the information and explanations given to us there are no dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax which have not been deposited on account of dispute except the following:

Nature of the Statute & Nature of dueAmount (Rs. Lakhs)PeriodForum where litigation is pending
Income Tax - The revenue has appealed before Hon'ble High Court of Andhra 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.370.67From 01.04.1997 to 31.03.2016Hon'ble High Court
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.722.45From 01.04.2007 to 31.03.2016CESTAT Hyderabad

8. According to the information and explanations given to us the Company has defaulted in payment of overdue in working capital loans to the banks as reported in Note No.20 and interest accrued and due as reported in Note No.22.

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

10. According to the information and explanations given to us and based upon the audit procedures performed by us no fraud by the Company or on the Company committed by its officers or employees has been noticed or reported during the year.

11. According to the information and explanations given to us the managerial remuneration paid or provided during the year is in compliance with the provisions of Section 197 read with Schedule Vof the Companies Act 2013.

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

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

14. According to the information and explanations given to us the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Hence reporting requirement on compliance with Section 42 of the Companies Act 2013 and purpose of application of the funds so raised is not applicable.

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

16. According to the information and explanations given to us and in ouropinion the Company is not required to be registered under section 45- lAofthe Resen/e Bank of India Act 1934.

For G NAGENDRASUNDARAM & CO.
Chartered Accountants
FRN 005355S
G NAGENDRASUNDARAM
Place: HyderabadPartner
Date : May 23 2019M.No.050283

ANNEXURE-2 TO THE INDEPENDENT AUDITOR'S REPORT:

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

We have audited the internal financial controls over financial reporting of OIL COUNTRY TUBULAR LIMITED (the Company) as of March 31 2019 in conjunction with ouraudit of the financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance Note) and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

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

1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;

2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and

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

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion the Company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 312019 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

For G NAGENDRASUNDARAM & CO.
Chartered Accountants
FRN 005355S
G NAGENDRASUNDARAM
Place: HyderabadPartner
Date : May 23 2019M.No.050283

   

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