1. HISTORY :
 
 Oil Country Tubular Limited (OCTL) is a unique integrated facility
 established in 1989 and is one of the leading Companies in the world,
 processing a wide range of Oil Country tubular Goods viz., Drill Pipes,
 Heavy Weight Drill Pipes, Tubing, Casing, Drill Collars and other Oil
 Field Accessories required for the Oil Drilling and Exploration. The
 facility was set up in the State of Andhra Pradesh, India with a
 capital outlay of Rs. 500 Million. During the year the Company has
 taken up Second Heat Treatment Plant and End Finishing Facility to meet
 the demand of Customers with an estimated Project cost of Rs.1500
 Millions.
 
 2.  Provident Fund:
 
 Retirement benefit in the form of Provident Fund is a defined
 contribution scheme and the contributions are charged off to the Profit
 and Loss account of the year when the contributions to the fund are
 due. There are no other obligations other than the contributions to be
 remitted to the Provident Fund Authorities.
 
 3.  Leave Encashment:
 
 Provision for Leave Encashment is recognised in the books as per the
 actuarial valuation.
 
 a) Borrowing Cost:
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that takes necessarily
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to revenue.
 
 b) Provision for Current and Deferred Tax:
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income tax Act, 1961.
 Deferred tax resulting from timing difference between taxable and
 accounting income is accounted for using the tax rates and laws that
 are enacted or substantively enacted as on the balance sheet date.
 Deferred tax asset is not recognised in the books as mater of prudence.
 
 c) Research and Development :
 
 Capital expenditure incurred has been disclosed under their natural
 heads of account and revenue expenditure incurred is charged off as a
 distinct item in the Profit and Loss account.
 
 d) Claims:
 
 Claims by and against the company, including liquidated damages, are
 recognised on acceptance basis.
 
 Defined Benefit Plan
 
 The employees gratuity fund scheme managed by a Trust is a defined
 benefit plan. The present value of obligation is determined based on
 actuarial valuation using the Projected Unit Credit Method, which
 recognised each period of service as giving rise to additional unit of
 employee benefit entitlement and measures each unit to build up the
 final obligation. The obligation for leave encashment is recognised in
 the books as per LIC actuarial valuation.
 
 The estimates of rate of escalation in salary considered in actuarial
 valuation, take into account inflation, seniority, promotion and other
 relevant factors including supply and demand in the employment market.
 The above information is certified by the actuary.
 
 The expected rate of return on plan assets is determined considering
 several applicable factors, mainly the composition of plan assets held,
 assessed risks, historical results of return p!a assets and the
 Companys policy for plan assets management.
 
 
 
                                                         (Rs. in Lakhs)
 
                                      As at 31.03.2011 As at 31.03.2010
 
 4.  Contingent liabilities not 
     provided for
 
 a) Bank guarantees                        4025.36         2347.28
 
 b) Letters of credit                       623.95         1622.27
 
 c) Bills discounted                        971.68         2985.21
 
 d) Un-executed Capital Work In Progress    745.15            8.25
 
 5. Claims against the company not 
    acknowledged as debts  
 
     Income Tax                             481.35          449.90
 
 (The revenue has appealed before Honble High Court of Andhra Pradesh
 against the order of Honble Andhra Pradesh Income Tax appellate
 Tribunal, Hyderabad which was in favour of the Company)
 
 6. (a) Working Capital Loans from banks and interest accrued on these
 loans are secured by hypothecation of present and future raw materials,
 work in progress, finished goods, stores and spares and book debts of
 the company and charge on the existing immovable properties.
 
 (b) The Term Loan includes ECB Loan and Buyers Credit facility for the
 Second Heat Treatment Plant and End Finishing Facility from Banks are
 secured by exclusive charges on the assets created out of the facility.
 
 7.  Segment Reporting:
 
 The Company is predominantly engaged in the manufacture and sale of Oil
 Country Tubular Goods where the risks and returns associated with the
 product are uniform. Hence, the Company has identified the following
 Product segments of the Company for reporting.
 
 8. There are no due to any creditors constituting Suppliers within
 the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises
 Development Act, 2006.
 
 9. Previous year figures have been regrouped / re arranged wherever
 necessary.