Notes to Accounts of Wendt (India) Ltd.

Mar 31, 2025

(k) Provisions and Contingencies

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a results of
a past event, it is probable that the Company will be
required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.

The amount recognised as a provision is the best
estimate of the consideration required to settle present
obligation at the end of reporting period, taking into
account the risk and uncertainties surrounding the
obligation. When a provision is measured using the
cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows
(when the effect of the time value of money is
material).

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is
virtually certain that reimbursement will be received and
the amount of receivable can be measured
reliably.

A disclosure for contingent liabilities is made where
there is a possible obligation or a present obligation that
may probably not require an outflow of resources or
where there is an an obligation for which the future
outcome cannot be ascertained with reasonable

certainty. When there is a possible or a present
obligation where the likelihood of outflow of resources is
remote, no provision or disclosure is made.

Contingent assets are not recognized in the financial
statements.

(l) Financial Instruments

Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual
provision of the instruments.

Financial assets (excluding trade receivables which do
not contain a significant financing component) and
financial liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to
or deducted from the fair value of the financial assets or
financial liabilities, as appropriate, on initial recognition.
Transactions costs directly attributable to the
acquisition of financial assets or financial liabilities at
fair value through profit or loss are recognised
immediately in the Statement of profit or loss.

(m) Financial assets

All regular way purchases or sales of financial assets
are recognised and derecognised on a trade date basis.
Regular way purchases or sales are purchases or sales
of financial assets that require delivery of assets within
the time frame established by regulation or convention
in the market place.

All recognised financial assets are subsequently
measured in their entirety at either amortized cost or fair
value, depending on the classification of the financial
assets.

(i) Classification of financial assets

Financial Assets that meet the following conditions are
subsequently measured at amortised cost (except for
financial assets that are designated as fair value
through profit or loss on initial recognition) :

• the asset is held within business model whose
objective is to hold assets in order to collect
contractual cash flows; and

• the contractual terms of the instruments give rise on
specified dates to cash flows that are solely
payments of principal and interest on the principal
and interest on the principal amount outstanding.

Financial assets are presented as current assets,
except for those maturing later than 12 months after the
reporting date which are presented as non-current
assets. Financial assets are measured initially at fair
value plus transaction costs and subsequently carried
at amortised cost using the effective interest method,
less any impairment loss.

For the impairment policy on financial assets measured
at amortised cost, refer Note 43(m)(iii)

Financial assets that meet the following conditions are
subsequently measured at fair value through other
comprehensive income (except for financial assets that
are designated as fair value through profit or loss on
initial recognition) :

• the asset is held within a business model whose
objective is achieved both by collecting contractual
cash flows and selling financial assets; and

• the contractual terms of the instruments give rise on
specified dates to cash flows that are solely
payments of principal and interest on the principal
and interest on the principal amount outstanding.

(ii) Financial assets at fair value through
Profit or loss (FVTPL)

FVTPL is a residual category for financial assets. Any
financial categorisation which is not at amortised cost or
as FVTOCI, is classified at FVTPL. In addition, the
Company may elect to designate the financial asset,
which otherwise meets amortised cost or FVTOCI
criteria, at FVTPL, if doing so eliminates or significantly
reduces a measurement or recognition inconsistency.

(iii) Impairment of financial assets

The Company measures the loss allowance for a
financial instrument at an amount equal to the lifetime
expected credit losses if the credit risk on that financial
instrument has increased significantly since initial
recognition. If the credit risk on a financial instrument
has not increased significantly since initial recognition,
the Company measures the loss allowance for that
financial instruments at an amount equal to 12 month
expected credit losses. 12 month expected credit losses
are portion of the lifetime expected credit losses and
represents the lifetime cash shortfalls that will result if
default occurs within the 12 months after the reporting
date and thus, are not cash shortfalls that are predicted
over the 12 months

(n) Trade and other payables

These amounts represent liabilities for goods and
services provided to the Company prior to the end of the
financial year which are unpaid. The amounts are
unsecured and are usually paid within 60 days of
recognition based on the agreed credit period. Trade
and other payables are presented as current liabilities
unless payment is not due within 12 months after the
reporting period. They are recognised initially at their
transaction price and subsequently measured at
amortised cost using the effective interest method, if
applicable.

Note 44 - Approval of Standalone Financial Statements

The Standalone Financial Statements were approved for issue by the Board of Directors on April 23, 2025.

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors

Firm Registration Number : 012754N/N500016

Jagadeesh Sridharan Sridharan Rangarajan Ninad Gadgil

Partner Director Executive Director & CEO

Membership Number : 217038 DIN:01814413 DIN: 08707884

Place : Chennai Place : Hosur

Place : Bengaluru

Mukesh Kumar Hamirwasia Arjun Raj P

Chief Financial Officer Company Secretary

Place : Hosur Membership Number: A30324

Place : Chennai

Date : April 23, 2025

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Mar 31, 2024

(i) The Company has granted advances in the nature of loans to 224 employees aggregating to Rs. 61 lakhs during the year (March 31,2023 : 233 employees Rs. 28 lakhs).

(ii) The terms and conditions under which such advances in the nature of loans were granted are not prejudicial to the Company’s interest.

(iii) The schedule of repayment of principal has been stipulated and the parties are repaying the principal amounts, as stipulated. These advances in the nature of loans to employees are interest free and hence, payment of interest is not applicable.

(iv) There is no amount which is overdue for more than ninety days.

(v) There were no advances in nature of loans which fell due during the year and were renewed/extended. Further, no fresh loans were granted to same parties to settle the existing overdue advances in nature of loan.

(b) There were no loans/advances in nature of loans which were granted during the year to promoters/related parties.

(a) Provision for inventories, which have either become wholly or partially obsolete (Provision for Obsolescence) or where their selling prices have declined below cost (Provision for net realizable value) charged during the year to the Statement of Profit and Loss amounted to Rs.81 lakhs (March 31,2023: Rs. 80 lakhs)

(b) Details of quarterly statements of current assets (inventories) filed by the Company with the bank and reconciliation with the books of account for the year ended March 31,2024:

(d) Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares with voting rights (one vote per share). The dividends proposed by the Board of directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend which is approved by the Board of Directors. In the event of liquidation of the Company, the equity shareholders are entitled to receive only the residual assets of the Company. The distribution of dividend is in the proportion to the number of equity shares held by the shareholders.

(e) There are no instances of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of 5 years immediately preceding the Balance Sheet date. Further, there are no contracts or commitments for the sale of shares or disinvestment and there are no shares reserved for issue under options.

15.3 Distributions made and proposed

The amount of per share dividend distributed to equity shareholders during the year ended March 31,2024 and March 31,2023 was Rs.80 and Rs.75 respectively.

The Board of Directors at its meeting held on April 21,2023 had recommended a final dividend of 500% (Rs.50/- per equity share of face value Rs.10/- each). The proposal was approved by shareholders at the Annual General Meeting held on July 21,2023, this has resulted in a cash outflow of Rs.1000 lakhs. Also, the Board of Directors at its meeting held on January 19, 2024 had declared an interim dividend of 300% (Rs.30/- per equity share of face value of Rs.10/- each), this has resulted in a cash outflow of Rs.600 lakhs.

Further, the Board of Directors at its meeting held on April 25, 2024 have recommended a final dividend of 200% (Rs.20/- per equity share of face value of Rs.10/- each) which is subject to approval of shareholders.

(i) Provision is made for estimated warranty claims in respect of products sold which are still under warranty at the end of the reporting period. These claims are expected to be settled in the next financial year. Warranty estimates are established using historical information on the nature, frequency and average cost of warranty claims and also management estimates regarding possible future outflow on servicing the customers for any corrective action in respect of product failure which is generally expected to be settled within a period of 24 months.

Note 21 - Revenue from operations Accounting Policy

The Company earns revenue from sale of goods and services of Super Abrasives, High precision Grinding, Honing, Special Purpose Machines and Precision products.

a) Sale of goods

Revenue from sale of goods is recognised when control of products has transferred to customers and there are no unfulfilled obligations that could affect the customer''s acceptance of the products. Control of products is considered to be transferred at a point-in-time when goods have been despatched or delivered, as per the terms agreed with the customer.

Revenue is recognised at the transaction price which the company expects to be entitled.

The Company does not adjust any of the transaction prices for the time value of money as the contracts with customers do not contain a significant financing component, since the sales are generally made with a credit term of 30 to 60 days, which is consistent with market practice.

When the payment exceeds the value of goods supplied or services rendered, a contract liability (advance from customers) is recognised.

b) Sale of services

Revenue from rendering of services is recognized as the services are rendered over a period of time as per the terms of contracts with customers.

Note 29 - Financial Instruments 29.1 Capital Management

The capital includes issued equity share capital and all other equity reserves attributable to the equity holders. The Company’s objectives when managing capital is to safeguard their ability to continue as a going concern while maximizing the return to shareholders through the optimization of cash and cash equivalents along with investment which is predominantly investment in liquid, short term mutual funds and deposits.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The management assessed that fair value of cash and short- term 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.

The fair value of the quoted mutual funds is based on price quotations at reporting date and unquoted mutual funds is based on the net asset value published by the asset management company at the reporting date.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - I nputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.as prices) or indirectly (i.e. Derived from prices).

Level 3 - I nputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Investment in Subsidiaries is measured at cost and hence not considered for categorisation.

There have been no transfers among Level 1, Level 2 and Level 3 during the period.

Note 29.3 Financial Risk management objectives and polices

The Company treasury function provides service to the business, co-ordinates access to domestic and international financial markets monitors and manages the financial risks relating to the operations of the company through internal risk report which analyze exposures by degree and magnitude of risk. These risk include market risk, currency risk, interest risk, price risk, credit risk and liquidity risk.

The Company seeks to minimize the effects of these risks by using policies approved by the board of directors, which provide written principles on interest risk, credit risk and investment of excess liquidity. The Company does not enter into trade financial instruments for speculative purpose.

The Company treasury function reports quarterly to the senior management team that monitors risk and policies implemented to mitigate risk exposures.

29.3.1 Market risk

The company is exposed primarily to the financial risk of change in foreign currency exchange rate. The Company transacts in various foreign currencies. Foreign currencies are recognised at the rate of exchange prevailing at the date of transaction. Company being a net exporter, follows the policy of natural hedging of foreign exchange transactions. There is net foreign exchange gain in the current and previous year.

29.3.1 (a) Foreign currency risk management

The company undertakes transactions denominated in foreign currencies, consequently, the company is exposed to exchange rate fluctuations. To mitigate this, company is operating US Dollar denominated Exchange Earners'' foreign currency (EEFC) account. The export proceeds are getting credited in this account and these amounts in foreign currency are utilized to make import payments. Further, the company, being a net exporter, follows the policy of natural hedging of foreign exchange earnings and outflow and hence it does not take any forward covers.

29.3.3 Liquidity Risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company''s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s business and reputation.

The Company regularly reviews its receivables, inventory and other working capital elements to mitigate any liquidity concerns. Any surplus from the business funds needs is parked in debt mutual funds (liquid / liquid plus) of reputed Asset Management Companies to provide day to day working capital.

29.3.2 Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

The customers are broadly classified into high risk and medium risk, accordingly credit limit exposure is fixed. The company carries out payment performance review of all customers and based on this analysis, risk category of customers are evaluated annually. Further, the utilization of credit limit is regularly monitored by the Management.

Note 30 - Segment Disclosure

Accounting Policy

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM).

30.1 Products and services from which reportable segments derive their revenue

The Chief Executive officer (CEO) of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the CODM, in deciding how to allocate resources and assessing performance.

1) The Company is organised into three main business segments, namely :

a) Super Abrasives, b) Machines and accessories and c) Precision Products.

The above segments have been identified taking into account the organisation structure as well as the differing risks and returns of these segments. The Company has identified business segments as its primary segments. The reportable business segments are in line with the segment wise information which is being presented to the CODM.

2) Segment Revenue and expenses have been identified to segments on the basis of their relationships to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Other un-allocable Income".

The depreciation recognized in respect of the leased out portion of the factory building for the year is Rs. 4 lakhs (March 31,2023 : Rs. 4 lakhs).

There are no contingent rents receivable and there are no direct operating expenses related to the above building.

Note 32 - Employee Benefits

Defined Contribution Plans

The Company operates defined contribution benefit plans for all qualifying employees.

Superannuation fund, Providend fund and pension fund are defined contribution plans towards which the Company makes contribution at predetermined rates to the Superannuation Trust funded with Life Insurance Corporation Of India and the Regional Provident Fund Commissioner respectively. The same is debited to the Statement of Profit and Loss based on the amount of contribution required to be made as and when services are rendered by the employees. The Company also makes contributions to state plans namely Employee’s State Insurance Fund and Employee’s Pension Scheme 1995. The Company has no further payment obligation once the contributions have been paid.

Defined Benefit Plans

The Company is having defined benefit plan namely gratuity for all qualifying employees.

The liability for gratuity to employees as at the Balance sheet date is determined on the basis of actuarial valuation using Projected Unit Credit method. The amount is funded to a Gratuity fund administered by the trustees and managed by Life Insurance Corporation of India.

Remeasurement, comprising actuarial gain and losses and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected in retained earnings and is not reclassified to profit or loss.

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual changes in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

The entire amount of provision is presented as current since the Company does not have an unconditional right to defer settlement of any of these obligations. However, based on past experience, the Company does not expect all employees to avail the full amount of accrued leave or require payment for such leave within the next 12 months. The leave obligation not expected to be settled within the next 12 months amounts to Rs. 317 lakhs (March 31,2023 : Rs. 301 lakhs).

The related party relationships are as identified by the Company, on the basis of information available with the Company. Transactions with related parties, including in the nature of sale of goods, rendering of services, purchase of goods, procurement of services and others are at arm’s length price.

Note 34 - Earning per share (EPS)

Accounting Policy

The basic earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

(i) Details of benami property held: No proceedings have been initiated on or are pending against the group for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Wilful defaulter: The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) Relationship with struck off companies: The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(iv) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(v) 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.

(vi) (a) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities

(Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(vi) (b) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with

the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(vii) 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 in the books of account.

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

(ix) The Company has not revalued its Property, plant and equipment or intangible assets during the current or previous year.

(x) The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in Note 3 to the standalone financial statements, are held in the name of the Company.

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

(xii) The Company has been sanctioned working capital limits in excess of Rs.5 crores from banks on the basis of security of current assets. Refer Notes 11 and 12 for details of quarterly returns or statements filed by the Company.

(xiii) The Company was not required to recognise any provision as at March 31, 2024 under the applicable law or accounting standards, as it does not have any material foreseeable losses on long-term contracts. The Company did not have any derivative contracts as at March 31,2024.

(xiv) The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.

Note 42: Summary of other Accounting Policies

This note provides a list of other accounting policies adopted in the preparation of Standalone financial statements of the company to the extent they have not already been disclosed in the other notes above. These policies have been consistently applied to all the years presented unless otherwise stated.

(a) Rounding Off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs, as per the requirement of Schedule III, unless otherwise stated.

(b) Goodwill

Goodwill arising on acquisition of a business is carried at costs as established at the date of acquisition of the business less accumulated impairment losses, if any.

If the initial accounting for a business combination is incomplete by end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognised, to reflect new information obtained above facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognised at that date.

Goodwill is tested for impairment annually. For the purpose of impairment testing, goodwill is allocated to those cash-generating units that are expected to benefit from the business combination in which the goodwill arose. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated to reduce the carrying amount of the goodwill. Any impairment loss recognised for goodwill is not reversed in subsequent periods.

(c) Foreign currency transactions

Items included in the financial statements of the company are measured using the currency of the primary economic environment in which the entity operate (i.e. the "functional currency"). The

financial statements are presented in Indian Rupee (INR), the national currency for India, which is the functional and presentation currency of the company.

Transactions in currencies other than the entity''s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the date of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at that date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in the statement of profit and loss.

(d) Employee benefits

(i) Long Term Employee Benefits Defined Contribution Plans

Superannuation fund, Provident fund and Pension fund are defined contribution plans towards which the company makes contribution at predetermined rates to the Superannuation Trust, and the Regional Provident Fund Commissioner respectively. The same is debited to the Statement of Profit and Loss based on the amount of contribution required to be made as and when services are rendered by the employees.

The Company also makes contributions to state plans namely Employee''s State Insurance Fund and Employee''s Pension Scheme 1995. The Company has no further payment obligation once the contributions have been paid.

Defined Benefit Plan

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of the defined obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method. The amount is funded to a Gratuity fund administered by the

trustees and managed by Life Insurance Corporation of India.

Remeasurement, comprising actuarial gain and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the Balance Sheet. Defined benefit costs are categorised as follows :

• service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

• net interest expense or income;

• remeasurement

Other long term Employee Benefits -Compensated Absences

The Company also has liabilities for earned leave that are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. These obligations are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the appropriate market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in the Statement of profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

Termination benefits are recognized as an expense as and when incurred.

(ii) Short-term employee benefits

Short term employee benefits including performance incentives which are expected to be settled within 12 months after the end of the

period in which the employee renders related service, are determined as per Company''s policy and recognized as expense based on expected obligation on undiscounted basis.

(e) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it relates to items directly recognized in equity or in other comprehensive income.

(i) Current tax

Current income tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the taxable income for the period. The tax rates and tax laws used to compute the current tax amount are those that are enacted or substantively enacted by the reporting date and applicable for the period. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.

(ii) Deferred tax

Deferred income tax is recognized using the Balance Sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements. However, the deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill or from initial recognition of an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or losses at the time of the transaction.

Deferred income tax asset are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

Deferred income tax liabilities are recognized for all taxable temporary differences.

The carrying amount of deferred income tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

(iii) Indirect taxes

Goods and Services Tax (GST) credit on materials purchased / services availed for production / input services are taken into account at the time of purchase and availing services. GST Credit on purchase of capital goods wherever applicable are taken into account as and when the assets are acquired. The GST credits so availed are utilised for payment of GST on outward supply and service. The unutilised GST credit is carried forward in the books.

(f) Property, Plant and equipment

The cost of Property, Plant and equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying tangible assets up to the date the asset is ready for its intended use. Machinery spares which can be used exclusively in connection with an item of tangible asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent costs are included in the asset''s carrying amount are recognised as a separate asset, as appropriate only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.

Capital work-in-progress:

Items of assets which are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest, if any.

Depreciation

Depreciation on property, plant and equipment has been provided on the straight-line method as above based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.

Depreciation on assets added / disposed off during the year is provided on pro-rata basis from the month of addition or up to the month prior to the month of disposal, as applicable.

Individual assets costing less than Rs.5,000 each are depreciated in full in the year of acquisition.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of profit or loss.

(g) Intangible assets

Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses, if any. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

(h) Impairment of Property, plant and equipment and intangible assets other than goodwill

At the end of each reporting period, the company

reviews the carrying amounts of its Property, plant and equipment and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is higher of fair value less cost of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cashgenerating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of profit or loss.

(I) Inventories

Inventories are valued at lower of cost and net realizable value. Cost of raw materials, stores and spares and traded goods comprises cost of purchases. Cost of work-in-progress and finished goods comprises direct materials, direct labour, and an appropriate proportion of overheads. Cost of inventories also include all other costs incurred in bringing the inventories to the present location and condition. Cost is computed on weighted average basis.

Net realisable value represents the estimated selling price for inventories less the estimated

costs of completion and estimated costs necessary to make the sale.

Provisions are made for potential obsolescence based on management assessment of aged inventory items.

(j) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short term, highly liquid investments with maturity of 3 months or less that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in values, and bank overdrafts.

Statement of Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

(k) Provisions and Contingencies

Provisions are recognised when the company has a present obligation (legal or constructive) as a results of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle present obligation at the end of reporting period, taking into account the risk and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of receivable can be measured reliably.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources or where there is an an obligation for which the future outcome cannot be ascertained with reasonable certainty. When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are not recognized in the financial statements.

(l) Financial Instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provision of the instruments. Financial assets (excluding trade receivables which do not contain a significant financing component) and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transactions costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the Statement of profit or loss.

(m) Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place.

All recognised financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the financial assets.

(i) Classification of financial assets

Financial Assets that meet the following conditions are subsequently measured at amortised cost (except for financial assets that are

designated as fair value through profit or loss on initial recognition) :

• the asset is held within business model whose objective is to hold assets in order to collect contractual cash flows; and

• the contractual terms of the instruments give rise on specified dates to cash flows that are solely payments of principal and interest on the principal and interest on the principal amount outstanding.

Financial assets are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. Financial assets are measured initially at fair value plus transaction costs and subsequently carried at amortised cost using the effective interest method, less any impairment loss.

For the impairment policy on financial assets measured at amortised cost, refer Note 42(m)(iii). Financial assets that meet the following conditions are subsequently measured at fair value through other comprehensive income (except for financial assets that are designated as fair value through profit or loss on initial recognition) :

• the asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets; and

• the contractual terms of the instruments give rise on specified dates to cash flows that are solely payments of principal and interest on the principal and interest on the principal amount outstanding.

(ii) Financial assets at fair vlue through Profit or loss (FVTPL)

FVTPL is a residual category for financial assets. Any financial categorisation which is not at amortised cost or as FVTOCI, is classified at FVTPL. In addition, the company may elect to designate the financial asset, which otherwise meets amortised cost or FVTOCI criteria, at FVTPL, if doing so eliminates or significantly reduces a

measurement or recognition inconsistency.

recognition, the company measures the loss allowance for that financial instruments at an amount equal to 12 month expected credit losses. 12 month expected credit losses are portion of the lifetime expected credit losses and represents the lifetime cash shortfalls that will result if default occurs within the 12 months after the reporting date and thus, are not cash shortfalls that are predicted over the 12 months.

(iii) Impairment of financial assets

The company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial

Note 43 - Approval of Standalone financial statements

The Standalone financial statements were approved for issue by the Board of Directors on April 25, 2024.

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Mar 31, 2023

(i) The Company has granted advances in the nature of loans to 233 employees aggregating to Rs. 27.91 lakh during the year.

(ii) The terms and conditions under which such advances in the nature of loans were granted are not prejudicial to the Company’s interest.

(iii) The schedule of repayment of principal has been stipulated and the parties are repaying the principal amounts, as stipulated. These advances in the nature of loans to employees are interest free and hence, payment of interest is not applicable.

(iv) There is no amount which is overdue for more than ninety days.

(v) There were no advances in nature of loans which fell due during the year and were renewed/extended. Further, no fresh loans were granted to same parties to settle the existing overdue advances in nature of loan.

There were no loans/advances in nature of loans which were granted during the year to promoters/related parties.

(d) Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares with voting rights (one vote per share). The dividends proposed by the Board of directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend which is approved by the Board of Directors. In the event of liquidation of the Company, the equity shareholders are entitled to receive only the residual assets of the Company. The distribution of dividend is in the proportion to the number of equity shares held by the shareholders.

(e) There are no instances of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of 5 years immediately preceding the Balance Sheet date. Further, there are no contracts or commitments for the sale of shares or disinvestment.

15.3 Distributions made and proposed

The amount of per share dividend distributed to equity shareholders during the year ended March 31,2023 and March 31,2022 was Rs. 75 and Rs. 40 respectively.

The Board of Directors at its meeting held on April 23, 2022 had recommended a final dividend of 450% (Rs. 45/- per equity share of face value Rs.10/- each). The proposal was approved by shareholders at the Annual General Meeting held on July 22, 2022, this has resulted in a cash outflow of Rs. 900 lakhs. Also, the Board of Directors at its meeting held on January 18, 2023 had declared an interim dividend of 300% (Rs. 30/- per equity share of face value of Rs. 10/- each).

Further, the Board of Directors at its meeting held on April 21,2023 have recommended a final dividend of 500% (Rs.50/- per equity share of face value of Rs.10/- each) which is subject to approval of shareholders.

(i) Secured Short term loan from bank represents Export packing credit availed against export orders by hypothecation of finished goods and trade receivables. This credit carries an interest rate of 2.20% per annum and is repayable against receipt of related trade receivable.

(ii) First charge on all Property, plant and equipment of the Company except land and building.

(iii) Details of quarterly statements of current assets filed by the Company with the bank and reconciliation with the books of account for the year ended March 31,2023:

(i) Provision is made for estimated warranty claims in respect of products sold which are still under warranty at the end of the reporting period. These claims are expected to be settled in the next financial year. Warranty estimates are established using historical information on the nature, frequency and average cost of warranty claims and also management estimates regarding possible future outflow on servicing the customers for any corrective action in respect of product failure which is generally expected to be settled within a period of 24 months.

Note: The Board of Directors of the Company had approved a proposal for voluntary de-registration of M/s. Wendt Middle East FZE ("WME"), a wholly owned subsidiary of the company located at Hamriyah Free Zone, Sharjah, UAE during January 2021 and the deregistration process was initiated thereafter. During the year ended March 31,2022, WME had substantially completed liquidation related procedures and also repaid back the share capital to the Company. The gain amounting to Rs. 74.22 lakhs on repayment of share capital by WME to the company had been recognised as an exceptional item during the year ended March 31,2022. Further, the clearance certificate for de-registration from the Hamriyah Free Zone Authority (HFZA) has been received on May 10, 2022 and accordingly, the subsidiary ceased to be in existence from the above date.

Note 31 - Financial Instruments 31.1 Capital Management

The capital includes issued equity share capital and all other equity reserves attributable to the equity holders. The Company’s objectives when managing capital is to safeguard their ability to continue as a going concern while maximizing the return to shareholders through the optimization of cash and cash equivalents along with investment which is predominantly investment in liquid, short term mutual funds and deposits.

The management assessed that fair value of cash and short- term deposits, trade receivables, trade payables, borrowings and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

(I) The fair value of the quoted mutual funds is based on price quotations at reporting date and unquoted mutual funds is based on the net asset value published by the asset management company at the reporting date. The fair value of unquoted instruments , loans from banks and other financial liabilities, as well as other non-current financial liabilities is estimated by discounting future cash flows using rates currently available for debtor similar terms, credit risk and remaining maturities.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.as prices) or indirectly (i.e. Derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Investment in Subsidiaries is measured at cost and hence not considered for categorisation.

Note 31.3 Financial Risk management objectives and polices

The Company treasury function provides service to the business, co-ordinates access to domestic and international financial markets monitors and manages the financial risks relating to the operations of the company through internal risk report which analyze exposures by degree and magnitude of risk. These risk include market risk, currency risk, interest risk, price risk, credit risk and liquidity risk.

The Company seeks to minimize the effects of these risks by using policies approved by the board of directors, which provide written principles on interest risk, credit risk and investment of excess liquidity. The Company does not enter into trade financial instruments for speculative purpose.

The Company treasury function reports quarterly to the senior management team that monitors risk and policies implemented to mitigate risk exposures.

31.3.1 Market risk

The company is exposed primarily to the financial risk of change in foreign currency exchange rate. The Company transacts in various foreign currencies. Foreign currencies are recognised at the rate of exchange prevailing at the date of transaction. Company being a net exporter, follows the policy of natural hedging of foreign exchange transactions. There is net foreign exchange gain in the current and previous year.

31.3.1 (a) Foreign currency risk management

The company undertakes transactions denominated in foreign currencies, consequently, the company is exposed to exchange rate fluctuations. To mitigate this, during the year company started operating US Dollar denominated Exchange Earners'' foreign currency (EEFC) account. The export proceeds are getting credited in this account and these amounts in foreign currency are utilized to make import payments. Further, the company, being a net exporter, follows the policy of natural hedging of foreign exchange earnings and outflow and hence it does not take any forward covers.

31.3.3 Liquidity Risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company''s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s business and reputation.

The Company regularly reviews its receivables, inventory and other working capital elements to mitigate any liquidity concerns. Any surplus from the business funds needs is parked in debt mutual funds (liquid / liquid plus) of reputed Asset Management Companies to provide day to day working capital.

31.3.2 Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

The customers are broadly classified into high risk and medium risk, accordingly credit limit exposure is fixed. The company carries out payment performance review of all customers and based on this analysis, risk category of customers are evaluated annually. Further, the utilization of credit limit is regularly monitored by the Management.

Note 32 - Segment Disclosure

32.1 Products and services from which reportable segments derive their revenue

The CEO of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the CODM, in deciding how to allocate resources and assessing performance.

The Company has changed its reportable segments during the current year, accordingly the company has restated the corresponding items of segment information for earlier year.

1) The Company is now organised into three main business segments, namely :

a) Super Abrasives, b) Machines and accessories and c) Precision Products.

The above segments have been identified taking into account the organisation structure as well as the differing risks and returns of these segments. The Company has identified business segments as its primary segments. The reportable business segments are in line with the segment wise information which is being presented to the CODM.

2) Segment Revenue and expenses have been identified to segments on the basis of their relationships to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Other un-allocable Income".

32.6 Information about major customers

No single customer represents 10% or more of the company''s total revenue for the year ended March 31,2023 (March 31,2022: One customer in superabrasives and precision products segments represents 10.12% of the company''s total revenue).

Note 33 - Leases As a Lessee

The Company has entered into operating lease arrangements for leased accommodation which is for a period of 12 months. The lease is cancellable at the option of the lessee.

This lease is a short term lease and does not include any variable payment terms.

As a Lessor

The Company has entered into operating lease arrangements and leased out a portion of its factory building to a related party, which is for a period of less than 12 months.

This lease is a short term lease and does not include any variable payment terms.

Amounts recognised in the Statement of Profit and Loss:

The statement of profit or loss shows the following amount related to leases:

The depreciation recognized in respect of the leased out portion of the factory building for the year is Rs. 3.97 lakhs (March 31, 2022 : Rs. 4.91 lakhs).

There are no contingent rents receivable and there are no direct operating expenses related to the above building.

Note 34 - Employee Benefits

Defined Contribution Plans

The Company operates defined contribution benefit plans for all qualifying employees.

Superannuation fund, Providend fund and pension fund are defined contribution plans towards which the Company makes contribution at predetermined rates to the Superannuation Trust funded with Life Insurance Corporation Of India and the Regional Provident Fund Commissioner respectively. The same is debited to the Statement of Profit and Loss account based on the amount of contribution required to be made as and when services are rendered by the employees. The Company also makes contributions to state plans namely Employee’s State Insurance Fund and Employee’s Pension Scheme 1995. The Company has no further payment obligation once the contributions have been paid.

Defined Benefit Plans

The Company is having defined benefit plan namely gratuity for all qualifying employees.

The liability for gratuity to employees as at the Balance sheet date is determined on the basis of actuarial valuation using Projected Unit Credit method. The amount is funded to a Gratuity fund administered by the trustees and managed by Life Insurance Corporation of India.

Remeasurement, comprising actuarial gain and losses and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected in retained earnings and is not reclassified to profit or loss.

The plans typically expose the company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.
Investment risk	The present value of the defined benefit plan liability is calculated using the discount rate which is determined by reference to market yield at the end of the reporting period on government bonds. For other defined benefit plans, the discount rate is determined by reference to market yields at the end of the reporting period. If the return on plan asset is below this rate, it will create a plan deficit.
Interest risk	A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s investments.
Longevity risk	The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectance of the plan participants will increase the plan''s liability.
Salary risk	The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual changes in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

The entire amount of provision is presented as current since the Company does not have an unconditional right to defer settlement of any of these obligations. However, based on past experience, the Company does not expect all employees to avail the full amount of accrued leave or require payment for such leave within the next 12 months. The leave obligation not expected to be settled within the next 12 months amounts to Rs. 301.11 lakhs (March 31,2022 : Rs. 241.13 lakhs).

Note 37 - Contingent Liability and commitments to the extent not provided for:

37.1 Commitments

Particulars	March 31, 2023	March 31, 2022
(a) Estimated amount of contracts remaining to be executed on capital account (in respect of tangible assets) and not provided for (net of advances Rs. 20.43 lakhs, March 31,2022: Rs. 201.84 lakhs)	865.43	555.94
(b) Commitment towards partly paid-up share for 100% Wholly Owned Subsidiary - 10,299,993 shares @ THB 7.50 (1 THB = INR 2.52)	1,946.70
(c) Other Commitments
-Fulfilment of Export obligation (refer Note below)	209.00	54.52

Note: Relates to incremental export obligation to be fulfiled by the Company as a condition towards duty saved on Property, plant and Equipment imported under the Export Promotion Captial Goods Scheme. As per managment''s estimate, the Company will be able to fulfill the balance obligation over the prescribed period of time i.e. upto March 31,2026.

37.2 The Company does not have any pending litigations that would impact its financial position as at March 31,2023.

Note 46 - Additional regulatory information required by Schedule III

(i) Details of benami property held: No proceedings have been initiated on or are pending against the group for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Wilful defaulter: The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) Relationship with struck off companies: The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(iv) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(v) 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.

(vi) (a) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign

entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(vi) (b) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)

with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(vii) 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 in the books of account.

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

(ix) The Company has not revalued its Property, plant and equipment or intangible assets during the current or previous year.

(x) The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in Note 3A to the financial statements, are held in the name of the Company.

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

(xii) The borrowings obtained by the Company from bank have been applied for the purposes for which such loans were taken.

(xiii) The Company was not required to recognise any provision as at March 31, 2023 under the applicable law or accounting standards, as it does not have any material foreseeable losses on long-term contracts. The Company did not have any derivative contracts as at March 31,2023.

(xiv) The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.

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Mar 31, 2022

31.1 Capital Management

The capital includes issued equity share capital and all other equity reserves attributable to the equity holders. The Company’s objectives when managing capital is to safeguard their ability to continue as a going concern while maximizing the return to shareholders through the optimization of cash and cash equivalents along with investment which is predominantly investment in liquid and short term mutual funds.

The management assessed that fair value of cash and short- term deposits, trade receivables, trade payables, borrowings and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

(i) The fair value of the quoted mutual funds is based on price quotations at reporting date and unquoted mutual funds is based on the net asset value published by the asset management company at the reporting date. The fair value of unquoted instruments, loans from banks and other financial liabilities, as well as other non-current financial liabilities is estimated by discounting future cash flows using rates currently available for debtor similar terms, credit risk and remaining maturities.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.as prices) or indirectly (i.e. Derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Investment in Subsidiaries is measured at cost and hence not considered for categorisation.

Note 31.3 Financial Risk management objectives and polices

The Company treasury function provides service to the business, co-ordinates access to domestic and international financial markets monitors and manages the financial risks relating to the operations of the company through internal risk report which analyze exposures by degree and magnitude of risk. These risk include market risk, currency risk, interest risk, price risk, credit risk and liquidity risk.

The Company seeks to minimize the effects of these risks by using policies approved by the board of directors, which provide written principles on interest risk, credit risk and investment of excess liquidity. The Company does not enter into trade financial instruments for speculative purpose.

The Company treasury function reports quarterly to the senior management team that monitors risk and policies implemented to mitigate risk exposures.

31.3.1 Market risk

The company is exposed primarily to the financial risk of change in foreign currency exchange rate. The Company transacts in various foreign currencies. Foreign currencies are recognised at the rate of exchange prevailing at the date of transaction. Company being a net exporter, follows the policy of natural hedging of foreign exchange transactions. There is net foreign exchange gain in the current and previous year.

31.3.1 (a) Foreign currency risk management

The company undertakes transactions denominated in foreign currencies, consequently, the company is exposed to exchange rate fluctuations. The company, being a net exporter, follows the policy of natural hedging of foreign exchange earnings and outflow and hence it does not take any forward covers.

31.3.3 Liquidity Risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company''s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s business and reputation.

The Company regularly reviews its receivables, inventory and other working capital elements to mitigate any liquidity concerns. Any surplus from the business funds needs is parked in debt mutual funds (liquid / liquid plus) of reputed Asset Management Companies to provide day to day working capital.

31.3.2 Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables and contract assets) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

The customers are broadly classified into high risk and medium risk, accordingly credit limit exposure is fixed. The company carries out payment performance review of all customers and based on this analysis, risk category of customers are evaluated annually. Further, the utilization of credit limit is regularly monitored through inbuilt locks in the ERP system.

Note 32 - Segment Disclosure

32.1 Products and services from which reportable segments derive their revenue

The Chief Executive Officer (CEO) of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the CODM, in deciding how to allocate resources and assessing performance.

1) The Company is organised into two main business segments, namely : a) Super Abrasives and b) Machines, Accessories and Components.

The above segments have been identified taking into account the organisation structure as well as the differing risks and returns of these segments. The Company has identified business segments as its primary segments. The reportable business segments are in line with the segment wise information which is being presented to the CODM.

2) Segment Revenue and expenses have been identified to segments on the basis of their relationships to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Other un-allocable Expenditure" .

Note 34 - Employee Benefits

Defined Contribution Plans

The Company operates defined contribution benefit plans for all qualifying employees of the company.

Superannuation fund, Providend fund and pension fund are defined contribution plans towards which the company makes contribution at predetermined rates to the Superannuation Trust funded with Life Insurance Corporation Of India and the Regional Provident Fund Commissioner respectively. The same is debited to the Statement of Profit and Loss accounts based on the amount of contribution required to be made as and when services are rendered by the employees. The Company also makes contributions to state plans namely Employee’s State Insurance Fund and Employee’s Pension Scheme 1995. The Company has no further payment obligation once the contributions have been paid.

Defined Benefit Plans

The Company is having defined benefit plan namely gratuity for all qualifying employees of the company.

The liability for gratuity to employees as at the Balance sheet date is determined on the basis of actuarial valuation using Projected Unit Credit method. The amount is funded to a Gratuity fund administered by the trustees and managed by Life Insurance Corporation of India.

Remeasurement, comprising actuarial gain and losses and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected in retained earnings and is not reclassified to profit or loss.

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual changes in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

(x) The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in Note 3A to the financial statements, are held in the name of the Company.

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

(xii) The borrowings obtained by the Company from bank have been applied for the purposes for which such loans were taken.

(xiii) The Company was not required to recognise any provision as at March 31,2022 under the applicable law or accounting standards, as it does not have any material foreseeable losses on long-term contracts. The Company did not have any derivative contracts as at March 31,2022.

(xiv) The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.

Note 46 - COVID -19

The Company has assessed the possible impact of COVID-19 pandemic on its financial results based on the information available upto the date of approval of these financial statements and concluded that there is no material impact on the standalone financial statements. The Company continues to monitor the future economic effects of the pandemic while taking steps to improve its execution efficiencies and the financial outcome.

Note 47 - Additional regulatory information required by Schedule III

(i) Details of benami property held: No proceedings have been initiated on or are pending against the group for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Wilful defaulter: The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) Relationship with struck off companies: The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(iv) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(v) 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.

Note 49: Previous year''s figures have been regrouped / reclassified to conform to the current year''s presentation for the purpose of comparability.

Note 50 - Approval of Standalone financial statements

The Standalone financial statements were approved for issue by the Board of Directors on April 22, 2022.

(vi) (a) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign

entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(vi) (b) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)

with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(vii) 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 in the books of account.

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

(ix) The Company has not revalued its Property, plant and equipment or intangible assets during the current or previous year.

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Mar 31, 2018

1 COMPANY OVERVIEW

Wendt (India) Limited was incorporated on August 21, 1980 under the provisions of the erstwhile Companies Act,1956, and is a joint venture between Wendt GmbH Germany and Carborundum Universal Limited, India. Wendt (India) Limited is a leading manufacturer of Super Abrasives, High precision Grinding, Honing and Special Purpose Machines and High Precision components. The Company’s registered office is in Bangalore and factory is situated in Hosur, Tamilnadu.

(a) Rights, Preferences and Restrictions attached to shares

The Company has only one class of equity shares with voting rights (one vote per share). The dividends proposed by the Board of directors is subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the equity shareholders are entitled to receive only the residual assets of the Company. The distribution of dividend is in the proportion to the number of equity shares held by the shareholders.

(d) There are no instances of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of 5 years immediately preceding the Balance Sheet date.

2.1 Distributions made and proposed

The amount of per share dividend recognized as distributions to equity shareholders for the year ended March 31, 2018 and March 31,2017 was Rs.25 and Rs. 25 respectively.

The Board of Directors at its meeting held on April 24,2017 had recommended a final dividend of 150% (Rs.15/-per equity share of face value Rs. 10/-each). The proposal was approved by shareholders at the Annual General Meeting held on July 24,2017, this has resulted in a cash outflow of Rs. 361.07 lakhs, inclusive of dividend distribution tax of Rs. 61.07 lakhs. Also, the Board of Directors at its meeting held on January 24, 2018 had declared an interim dividend of 100% (Rs.10/- per equity share of face value of Rs.10/-each). Further, the Board of Directors at its meeting held on April 25,2018 have recommended a final dividend of 150% (Rs. 15/- per equity share of face value of Rs.10/-each) which is subject to approval of shareholders. If approved, this would result in a cash outflow of Rs. 361,07lakhs, inclusive of dividend distribution tax.

(iv) Goods and Service Tax (GST) has been effective from July 1, 2017. Consequently, excise duty, value added tax (VAT), Central sales tax (CST), Service tax etc, have been replaced with GST. Until June 30, 2017, ‘Sale of goods’ included the amount of excise duty recovered on sales. With effect from July 1, 2017, ‘Sale of goods’ excludes the amount of GST recovered. Accordingly, revenue from ‘Sale of goods’ and “Revenue from operations’ for the year ended March 31,2018 are not comparable with those of the previous year.

(v) Exports incentives represent grants in the nature of licenses under Merchandise Export from India Scheme (MEIS) and duty drawback. There are no unfulfilled conditions or contingencies attached to these grants.

The tax impact for deferred tax purposes has been arrived by applying a tax rate of 29.12% (March 31,2017: 34.61%) being the prevailing tax rate applicable for the company for the financial year ending March 31,2019 under the Income tax Act, 1961.

Note 3 - Business Combinations

The Company had acquired the “Diamond Tool” business from Star Diamond Tools Private Limited at a consideration of Rs. 250

This acquisition was made to enhance the company’s offerings in the field of one of our existing product line stationery dressers and this would also augment ourexisting manufacturing capability and capacity.

(i) The initial accounting for the acquisition of the business was provisionally determined as at the year ended March 31, 2016, pending installation of the tangible assets and registration of the intangible assets. Accordingly, as on March 31, 2016, the Company had classified these assets under the head “Capital Work-in-progress” and the inventories of Rs. 90.45 lakhs were included under current assets for the year ended March 31, 2016. The tangible assets were received by the company in the month of April 2016 and was subsequently installed and commissioned. These tangible assets have been capitalized during theyear2016-17.

(ii) The intangible assets comprising of Brands & Trademarks and Patents. Trademarks have been filed for registration in the name of the company. These intangible assets acquired in the business combination amounting to Rs. 131.00 lakhs have been recognized separately from Goodwill at their fair value at the acquisition date (which is regarded as their cost).

(iii) Goodwill arising on the acquisition of Star Diamond Tools Private Limited amounting to Rs. 10.27 lakhs has been recognized.

Note 4 - Financial Instruments

4.1 Capital Management

The capital includes issued equity share capital and all other equity reserves attributable to the equity holders. The Company’s objectives when managing capital is to safeguard their ability to continue as a going concern while maximizing the return to shareholders through the optimization of cash and cash equivalents along with investment which is predominantly investment in liquid and shortterm mutual funds.

4.2 Categories of financial instruments

The carrying value and fair value of financial instruments by categories as of March 31, 2018 and March 31, 2017 were as follows:

The management assessed that fair value of cash and short-term deposits, trade receivables, trade payables, book overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a currenttransaction between willing parties, otherthan in aforced or liquidation sale.

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

i) The fair value of the quoted mutual funds is based on price quotations at reporting date. The fair value of unquoted instruments, loans from banks and other financial liabilities, as well as other non-current financial liabilities is estimated by discounting future cash flows using rates currently available fordebtorsimilarterms, credit riskand remaining maturities.

Fairvalue hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level2- Inputs otherthan quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.as prices) or indirectly (i.e. Derived from prices).

Level 3- Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents the fair value measurement hierarchy of financial assets measured at fair value on recurring basis as at March 31,2018 and March 31,2017.

There have been no transfers among Level 1, Level 2 and Level 3 during the period.

Note 4.3 Financial Risk management objectives and polices

The Company treasury function provides service to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the company through internal risk report which analyze exposures by degree and magnitude of risk. These risk include market risk, currency risk, credit risk and liquidity risk.

The Company seeks to minimize the effects of these risks by using policies approved by the board of directors, which provide written principles on interest risk, credit risk and investment of excess liquidity. The Company does notenter into trade financial instruments for speculative purpose.

The Company treasury function reports quarterly to the senior management team that monitors risk and policies implemented to mitigate risk exposures.

4.3.1 Market risk

The company is exposed primarily to the financial risk of change in foreign currency exchange rate. The Company transacts in various foreign currencies. Foreign currencies are recognised at the rate of exchange prevailing at the date of transaction. Company being a net exporter, follows the policy of natural hedging of foreign exchange earnings. Net forex gain is always at positive side.

4.3.1 (a) Foreign currency risk management

The company undertakes transactions denominated in foreign currencies, consequently, the company is exposed to exchange rate fluctuations. The company, being a net exporter, follows the policy of natural hedging of foreign exchange earnings and outflow and hence it does not take any forward covers.

The carrying amounts of the Company’s foreign currency (unhedged) denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:

4.3.2 Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

The customers are broadly classified into high risk and medium risk, accordingly credit limit exposure is fixed. The company carries out payment performance review of all customers and based on this analysis, risk category of customers are evaluated annually. Further, the utilization of credit limit is regularly monitored through inbuilt locks in the ERP system.

4.3.3 Liquidity Risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company’s business and reputation.

The Company regularly reviews its receivables, inventory and other working capital elements to mitigate any liquidity concerns. Any surplus from the business funds needs is parked in debt mutual funds (liquid / liquid plus) of reputed Asset Management Companies to provide day today working capital.

Also, the company has unutilized credit limits with bank.

The following table presents the maturity period of all financial liabilities as at March 31,2018 and March 31,2017.

Note 5 - Segment Disclosure

5.1 Products and services from which reportable segments derive their revenue

The CEO of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the CODM, in deciding how to allocate resources and assessing performance.

1) The Company is organised into two main business segments, namely:

a) Super Abrasives and

b) Machines, Accessories and Components.

The above segments have been identified taking into account the organisation structure as well as the differing risks and returns of these segments. The Company has identified business segments as its primary segments. The reportable business segments are in line with the segment wise information which is being presented to the CODM.

2) Segment Assets and Segment Liabilities of the Company’s business have not been identified to any reportable segment, as these are used interchangeably between segments.

3) Segment Revenue and expenses have been identified to segments on the basis of their relationships to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under “Other un-allocable Expenditure”.

5.2 Information about major customers

No single customer represents 10% or more of the company’s total revenue for the year ended March 31, 2018 and March 31, 2017.

Note 6 - Leases

(a) The Company is obligated under cancelable operating leases towards residential accommodation, which are renewable at the option of both the lessor and the lessee. Total rental expense debited to the Statement of Profit and Loss under cancelable operating leases amounts to Rs. 16.51 lakhs (March 31,2017: Rs 15.60 lakhs).

There are no sub-lease payments received/receivable recognised in the statement of profit and loss. Also, there are no contingent rents payable and there are no restrictions imposed by lease agreements such as those concerning dividends and additional debt.

(b) The Company has leased out a portion of its factory building to a related party. Total rental income credited to the Statement of Profit and Loss amounts to Rs. 14.76 lakhs (March 31,2017: Rs. 13.42 lakhs)

The lease agreement is fora period of 12 months and can be terminated by either party by giving one month notice.

Details of the above referred lease are as given below:

The depreciation recognized in respect of the factory building for the year is Rs. 53.79 lakhs.

There are no contingent rents receivable.

Note 7 - Employee Benefits

Defined Contribution Plans

The Company operates defined contribution benefit plans for all qualifying employees of the company.

Superannuation fund, Providend fund and pension fund are defined contribution plans towards which the company makes contribution at predetermined rates to the Superannuation Trust funded with Life Insurance Corporation Of India and the Regional Provident Fund Commissioner respectively. The same is debited to the Statement of Profit and Loss accounts based on the amount of contribution required to be made and services rendered by the employees. The Company also makes contributions to state plans namely Employee’s State Insurance Fund and Employee’s Pension Scheme 1995. The Company has no further payment obligation once the contributions have been paid.

Defined Benefit Plans

The Company is having defined benefit plan namely gratuity for all qualifying employees of the company.

The liability for gratuity to employees as at the Balance sheet date is determined on the basis of actuarial valuation using Projected Unit Credit method. The amount is funded to a Gratuity fund administered by the trustees and managed by Life Insurance Corporation of India.

Remeasurement, comprising actuarial gain and losses and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected in retained earnings and is not reclassified to profit or loss.

The plans typically expose the company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

A. Gratuity

The following tables set out the funded status of the gratuity plans and the amounts recognised in the Company’s financial statements as at March 31,2018 and March 31,2017:

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual changes in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

The weighted average duration of the defined benefit obligation is 10 years (March 31,2017:10 years)

The Company expects to make a contribution of Rs. 50 lakhs (as at March 31,2017: Rs.29.69 lakhs) to the defined benefit plans during the next financial year. The employee benefit obligations(net) have been included in current liabilities based on the expected contributions.

Note 8 - Related Party Transactions

1) List of Related parties:

i) Party with whom control exists -Subsidiaries

(a) Wendt Grinding Technologies Ltd, Thailand

(b) Wendt Middle East FZE

ii) Venturers and its subsidiaries, to the joint venture with whom transactions have taken place during the year

(a) Carborundum Universal Limited (CUMI)

(1) CumiAmerica

(2) Cumi (Australia) Pty Ltd

(3) Cumi Abrasives & Ceramics Company Ltd

(4) Net Access India Ltd

(b) Wendt GmbH Germany

iii) Company in which KMP/Director is a director

(a) Ace Designers Ltd

(b) Pragati Transmission P Ltd

(c) Tespa Tools Pvt Ltd

(d) Sterling Abrasives Limited

iv) Key Management Personnel

Mr.Rajesh Khanna, Chief Executive

v) Relatives of Key Management Personnel

Mrs. Preethi Khanna-Wifeof Mr. Rajesh Khanna

2) Transaction with related parties during the year ended March 31,2018 and March 31,2017 are as follows:

a) The related party relationships are as identified by the Company, on the basis of information available with the Company and relied upon by the auditors.

b) No amounts in respect of related parties have been written off / back otherthan the amount included above during the year.

c) Key managerial personnel do not exercise significant influence over the gratuity and superannuation trust of the company.

* Amountfor both the years lying in unclaimed / unpaid dividend account

8.1 The Company has a working capital limit with State Bank of India, secured by hypothecation of stock and book debts and collateral charge on all fixed assets other than land and building.

Notes:-

I) Revenue expenditure shown above includes Depreciation on R&D assets of Rs. 49.33 lakhs (Previous year Rs.46.96 lakhs), Consultancy Services of Rs. 12.78 lakhs (Previous year Rs. 30.78 lakhs), Consultancy travel expenditure of Rs. 3.51 lakhs (Previous year Rs. 4.17 lakhs) & Contract manpower of Rs. NIL lakhs (Previous year Rs. 0.16 lakhs).

Note 9 - Previous years’s figures have been regrouped / reclassified to conform to the current year’s presentation for the purpose of comparability

Note 10 - Dislosure on Specified Bank Notes (SBN)

During the year ended March 31, 2017, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017. The details of Specified Bank Notes (SBN) held and transacted during the period from November 8,2016 to December 30,2016, the denomination wise SBNs and other notes as perthe notification is given below:

Note 11 - Corporate Social Responsibiltiy

(a) Gross amount required to be spent by the company during the year :- Rs. 32.36lakhs (Previous Year Rs. 32.34 lakhs)

(b) Amount spent by the company during the year on :- Rs. 32.36lakhs (Previous Year Rs. 32.34 lakhs)

Note 12 - Approval of financial statements

The financial statements were approved for issue by the board of directors on April 25, 2018.

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Mar 31, 2017

Note 1 - Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Note 2 - Research and Development Expenditure

Research and Development expenditure incurred during the year aggregates to Rs. 243.25 lakhs (Previous year Rs. 246.26 lakhs) as detailed below:

Note:- Revenue expenditure shown above includes Depreciation on R&D assets of Rs. 46.96 lakhs (Previous year Rs.48.08 lakhs), Consultancy Services of Rs. 30.78 lakhs (Previous year Rs. 78.59 lakhs), Consultancy travel expenditure of Rs. 4.17 lakhs (Previous year Rs. 14.99 lakhs) & Contract manpower of Rs. 0.16 lakhs (Previous year Rs. 1.41 lakhs).

Note 3 - Corporate Social Responsibility

(a) Gross amount required to be spent by the company during the yearRs. 32.34 lakhs (Previous Year Rs. 35.27 lakhs)

(b) Amount spent by the company during the year Rs. 32.34 lakhs (Previous Year Rs. 38.45 lakhs)

Note 4 - Disclosure on Specified Bank Notes (SBN)

During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(''E) dated March 31, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from November 8,2016 to December 30,2016, the denomination wise SBNs and other notes as per the notification is given below:

Note 5 - First-time Adoption of Ind AS

These standalone financial statements, for the year ended March 31, 2017, are the first the Company has prepared in accordance with Ind-AS. For periods up to and including the year ended March 31, 2016, the Company prepared its financial statements in accordance with statutory reporting requirement in India immediately before adopting Ind AS (''previous GAAP'').

Accordingly, the Company has prepared financial statements which comply with Ind-AS applicable for periods ending on or after March 31, 2017, together with the comparative period data as at and for the year ended March 31, 2016, as described in the summary of significant accounting policies in Note 2. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 1, 2015, the Company''s date of transition to Ind-AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2015 and the financial statements as satand for the year ended March 31,2016.

6 Exemptions & Exceptions Applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has accordingly applied the following exemptions:

7 (a) Investments in subsidiaries

The Company has elected to adopt the carrying value under previous GAAP as on the date of transition i.e. April 1, 2015 in its separate financial statements.

8 (b) Estimate exception

Upon an assessment of the estimates made under Indian GAAP, the company has concluded that there was no necessity to revise such estimates under Ind AS, except where estimates were required by Ind AS and not required by Indian GAAP.

9 Reconciliations

(I) Reconciliation of equity as previously reported under Indian GAAP to IND AS

(ii) Reconciliation of Profit and Total Comprehensive income as previously reported under Indian GAAP to IND AS

(iii) Effect of I nd AS adoption on the balance sheet as at March 31, 2016 and April 1,2015

(iv) Effect of I nd AS adoption on the statement of profit or loss for the year ended March 31, 2016

(v) Effect of I nd AS adoption on the statement of cash flows for the year ended March 31, 2016

(vi) Analysis of cash and cash equivalents as at March 31,2016 and as at April 1,2015 for the purpose of statement of cash flows under Ind AS

Notes for the above reconciliations:

(a) Under previous GAAP, current investments were measured at lower of cost or fair value. Under Ind AS, these financial assets have been classified as FVTPL on the date of transition. The fair value changes are recognized in profit or loss. On transitioning to Ind AS, these financial assets have been measured at their fair values which is higher than cost as per previous GAAP, resulting in an increase in carrying amount by Rs.32.93 lakhs as at March 31,2016 and by Rs.4.19 lakhs as at April 1,2015. The corresponding deferred taxes have also been recognized as at March 31, 2016 (Rs. 12.78 lakhs) and as at April 1, 2015(Rs.1.42 lakhs), and also for the year ended March 31,2016 (Rs.9.94 lakhs). The net effect of these changes is an increase in total equity as at March 31, 2016 of Rs.24.34 lakhs (Rs. 2.77 lakhs as at April 1, 2015), increase in profit before tax of Rs.28.74 lakhs and in total profit for the year ended March 31, 2016 of Rs. 18.80 lakhs.

(b) Under previous GAAP, dividend on equity shares recommended by the board of directors after the reporting period but before the financial statements were approved for issue were recognized in the financial statements as a liability. Under Ind AS, such dividends and taxes thereon are recognized when declared by the members in a general meeting. The effect of this change is an increase in total equity as at March 31, 2016 of Rs. 361.07 lakhs (Rs.359.99 lakhs as at April 1,2015), but does not affect the profit before tax and total profit for the year ended March 31,2016.

(c) Under previous GAAP, actuarial gains and losses were recognized in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognized in other comprehensive income. The actuarial losses for the year ended March 31, 2016 were Rs.48.34 lakhs. This does not affect the total equity, but there is an increase in profit before tax of Rs.48.34 lakhs, and in total profit of Rs.48.34 lakhs, for the year ended March 31,2016.

(d) Under previous GAAP, revenue from sale of goods was presented net of excise duty under revenue from operations. Whereas under Ind AS, revenue from sale of products includes excise duty. The corresponding excise duty expense is presented separately on the face of the statement of profit or loss. The change does not affect total equity as at April 1, 2015 and March 31,2016, profit before tax or total profitfor the year ended March 31,2016.

(e) Under previous GAAP, deferred tax were calculated on Profit & loss approach, whereas under Ind AS, deferred tax to be calculated on Balance sheet approach. This adjustment has resulted in an increase in deferred tax liability by Rs.0.35 lakhs and have resulted in a decrease inequity under Ind AS by Rs.0.35 lakhs as at April 1,2015 and March 31,2016.

(f) Under previous GAAP, capital advance were shown under Long term Loans & advances, whereas under Ind AS, the same is included in capital work in progress of Rs.9.05 lakhs as at March 31,2016 & Rs.40.39 lakhs as at April 1,2015.

(g) Under previous GAAP, book overdraft of Rs.48.66 lakhs as at March 31, 2016 were shown under Other current liabilities, whereas under Ind AS, the same is shown under other financial liabilities. Further, for the purpose of cash and cash equivalent for statement of cash flow, book overdraft is a part of cash and cash equivalents and hence, an amount of Rs. 48.66 lakhs is reduced.

Note 10 - Business Combinations

The Company had acquired the "Diamond Tool" business from Star Diamond Tools Private Limited at a consideration of Rs. 250 lakhs, under slump sale on March 29,2016.

This acquisition is made to enhance the company''s offerings in the field of one of our existing product line stationery dressers and this would also augment our existing manufacturing capability and capacity.

Consideration transferred

(I) The initial accounting for the acquisition of the business was provisionally determined as at the year ended March 31,2016, pending installation of the tangible assets and registration of the intangible assets. Accordingly, as on March 31, 2016, the Company had classified these assets under the head "Capital Work-in-progress" and the inventories of Rs.90.45 lakhs were included under current assets for the year ended March 31, 2016. The tangible assets were received by the company in the month of April 2016 and was subsequently installed and commissioned. These tangible assets have been capitalized during the year 2016-17.

(ii) The intangible assets comprising of Brands & Trademarks and Patents. Trademarks have been filed for registration in the name of the company. These intangible assets acquired in the business combination amounting to Rs.131.00 lakhs have been recognized separately from Goodwill at their fair value at the acquisition date (which is regarded as their cost).

(iii) Goodwill arising on the acquisition of Star Diamond Tools Private Limited amounting to Rs.10.27 lakhs has been recognized.

Impact of acquisition:-

In the financial year 2016-17, the company generated revenue of Rs.277.30 lakhs from this new business and anticipates good growth of revenues in the coming years. Included in the segment results of super abrasives, Rs. 20.08 lakhs attributable to the additional business generated on account of the acquisition of "Star Diamond Tools Private Ltd".

Note 11 - Financial Instruments

12 Capital Management

The capital includes issued equity share capital and all other equity reserves attributable to the equity holders. The Company''s objectives when managing capital is to safeguard their ability to continue as a going concern while maximizing the return to shareholders through the optimization of cash and cash equivalents along with investment which is predominantly investment in liquid and short-term mutual funds.

13 Categories of financial instruments

The carrying value and fair value of financial instruments by categories as of March 31, 2017, March 31, 2016 and April 1, 2015 were as follows:

The management assessed that fair value of cash and short- term deposits, trade receivables, trade payables, book overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

I) Long-term receivables are evaluated by the Company based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.

ii) The fair value of the quoted mutual funds is based on price quotations at reporting date. The fair value of unquoted instruments, loans from banks and other financial liabilities, as well as other non-current financial liabilities is estimated by discounting future cash flows using rates currently available for debtor similar terms, credit risk and remaining maturities.

Fair value hierarchy

Level 1 -Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2- Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.as prices) or indirectly (i.e. Derived from prices).

Level 3- Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents the fair value measurement hierarchy of financial assets measured at fair value on recurring basis as at March 31,2017, March 31,2016 and April 1,2015.

Note 14Financial Risk management objectives and polices

The Company treasury function provides service to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the company through internal risk report which analyze exposures by degree and magnitude of risk. These risk include market risk, currency risk, credit risk and liquidity risk.

The Company seeks to minimize the effects of these risks by using policies approved by the board of directors, which provide written principles on interest risk, credit risk and investment of excess liquidity. The Company does notenter into trade financial instruments for speculative purpose.

The Company treasury function reports quarterly to the senior management team that monitors risk and policies implemented to mitigate risk exposures.

15 Market risk

The company is exposed primarily to the financial risk of change in foreign currency exchange rate. The Company transact into different foreign currencies. Foreign currencies are recognized at the rate of exchange prevailing at the date of transaction. Company being a net exporter, follows the policy of natural hedging of foreign exchange earnings. Net forex gains is always at positive side.

16 Foreign currency risk management

The company undertakes transactions denominated in foreign currencies, consequently, the company is exposed to exchange rate fluctuations. The company, being a net exporter, follows the policy of natural hedging of foreign exchange earnings and outflow and hence it does not take any forward covers.

The carrying amounts of the Company''s foreign currency (unhedged) denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:

For the year ended March 31, 2017 and March 31, 2016, every 1 % increase / decrease of the respective foreign currencies compared to functional currency of the company would impact operating margins by 0.10% (0.10%) and 0.15% (0.15%) respectively.

17 Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

The customers are broadly classified into high risk and medium risk, accordingly credit limit exposure is fixed. The company carries out payment performance review of all customers and based on this analysis, risk category of customers are evaluated annually. Further, the utilization of credit limit is regularly monitored through inbuilt locks in the ERP system.

18 Liquidity Risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company''s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s business and reputation.

The Company regularly reviews its receivables, inventory & other working capital elements to mitigate any liquidity concerns. Any surplus from the business funds needs is parked in debt mutual funds (liquid/liquid plus) from reputed AMCs to provide day today working capital.

Also, the company has unutilized credit limits with bank.

Note 19 - Segment Disclosure 44.1 Products and services from which reportable segments derive their revenue

The CEO of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the CODM, in deciding how to allocate resources and assessing performance.

1) The Company is organized into two main business segments, namely:

a) Super Abrasives and b) Machines, Accessories and Components.

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments. The Company has identified business segments as its primary segments. The reportable business segments are in line with the segment wise information which is being presented to the CODM.

2) Segment Assets and Segment Liabilities of the Company''s business have not been identified to any reportable segment, as these are used interchangeably between segments and hence segment disclosure relating to capital employed has not been given.

3) Revenues earned from the business combination is included in Super Abrasives segment. Revenues are earned both in India and Outside India.

20 Segment Revenues and Results

21 Information about major customers

No single customer represents 10% or more of the company''s total revenue for the year ended March 31, 2017 and March 31, 2016.

Note 22 - Leases

(a) The Company is obligated under cancelable operating leases towards residential accommodation, which are renewable at the option of both the lessor and the lessee. Total rental expense debited to the Statement of Profit and Loss under cancelable operating leases amounts to Rs. 15.60 lakhs. (Previous year: Rs 14.10 lakhs).

There are no sub-lease payments received/receivable recognized in the statement of profit and loss. Also, there are no contingent rents payable and there are no restrictions imposed by lease agreements such as those concerning dividends and additional debt.

(b) The Company has leased out apportion of its factory building to a related party.

The lease agreement is for a period of 12 months and can be terminated by either party by giving one month notice.

The depreciation recognized in respect of the factory building for the year is Rs. 52.05 lakhs.

There are no contingent rents receivable.

Note23 - Employee Benefits

Defined Contribution Plans

The Company operates defined contribution benefit plans for all qualifying employees of the company.

Superannuation fund, Provident fund and pension fund are defined contribution plans towards which the company makes contribution at predetermined rates to the Superannuation Trust funded with Life Insurance Corporation Of India and the Regional Provident Fund Commissioner respectively. The same is debited to the Statement of Profit and Loss accounts based on the amount of contribution required to be made and services rendered by the employees.

Defined Benefit Plans

The Company is having defined benefit plan namely gratuity for all qualifying employees of the company.

The liability for gratuity to employees as at the Balance sheet date is determined on the basis of actuarial valuation using Projected Unit Credit method. The amount is funded to a Gratuity fund administered by the trustees and managed by Life Insurance Corporation of India. The liability thereof is paid and absorbed in the statement of profit and loss at the year end.

Remeasurement, comprising actuarial gain and losses and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected in retained earnings and is not reclassified to profit or loss.

The plans typically expose the company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

A. Gratuity

The following tables set out the funded status of the gratuity plans and the amounts recognized in the Company''s financial statements as at March 31, 2017 and March 31,2016:

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual changes in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet.

The Company expects to make a contribution of Rs. 29.69 lakhs (as at March 31, 2016: Rs.29.04 lakhs; as at April 1, 2015: Rs.26.29 lakhs) to the defined benefit plans during the next financial year. The employee benefit obligations (net) have been included in current liabilities based on the expected contributions.

B. Compensated Absences

(a) Charge to Statement of Profit and Loss and Liability

Note 24 - Related Party Transactions

1) List of Related parties:

i) Party with whom control exists -Subsidiaries

(a) Wendt Grinding Technologies Ltd, Thailand

(b) Wendt Middle East FZE, Sharjah

ii) Ventures to the joint venture with whom transactions have taken place during the year

(a) Carborundum Universal Limited (CUMI)

(b) Wendt GmbH Germany

iii) Company in which director is a director

(a) Ace Designers Ltd

(b) Pragati Transmission P Ltd

(c) Tespa Tools Pvt Ltd

iv) Key Management Personnel Mr.Rajesh Khanna, Chief Executive

v) Relatives of Key Management Personnel

Mrs. Preethi Khanna - Wife of Mr. Raiesh Khanna

Note 25 - Approval of financial statements

The financial statements were approved for issue by the board of directors on April 24, 2017.

---

Mar 31, 2016

Note 1. (iii)

Rights, Preferences and Restrictions attached to shares

The Company has only one class of equity shares with voting rights (one vote per share). The dividends proposed by the Board of directors is subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the equity shareholders are entitled to receive only the residual assets of the Company. The distribution of dividend is in the proportion to the number of equity shares held by the shareholders.

2.(11) SEGMENT DISCLOSURE

A) PRIMARY SEGMENT INFORMATION

Notes on Segment Information

3) The Company is organized into two main business segments, namely :

a) Super Abrasives and b) Machines, Accessories and Components.

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments. The Company has identified business segments as its primary segments.

4) Segment Assets and Segment Liabilities of the Company''s business have not been identified to any reportable segment, as these are used interchangeably between segments and hence segment disclosure relating to capital employed has not been given.

5.(13) Operating leases

a) The Company is obligated under cancelable operating leases towards residential accommodation, which are renewable at the option of both the lessor and the lessee. Total rental expense debited to the Statement of Profit and Loss under cancelable operating leases amounts to Rs. 14.10lacs. (Previous year: Rs 12.00 lacs).

There are no sub-lease payments received/receivable recognized in the statement of profit and loss. Also, there are no contingent rents payable and there are no restrictions imposed by lease agreements such as those concerning dividends and additional debt.

b) The Company has leased out a portion of its factory building to a related party.

The lease agreement is for a period of 24 months and can be terminated by either party by giving one month notice.

6.(18)DETAILS OF ACQUISITION OF BUSINESS DURING THE YEAR

The Company has acquired the "Diamond Tool" business from Star Diamond Tools Private Limited at a consideration of Rs. 250 lacs, under slump sale on 29th March, 2016. The business transfer agreement excluded the immovable property, fixtures & fittings located at the factory, vehicles, cash and bank balance and computers and software of the seller company. Pending installation of the tangible assets and registration of the intangible assets as on March 31, 2016, the company has classified the assets under the head "Capital Work-in-Progress". The inventories have been included undercurrent assets.

7.(19)Previous year''s figures have been regrouped / reclassified wherever necessary to make them comparable with the current year''s classification /disclosure.

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Mar 31, 2015

NOTE No.1

A COMPANY OVERVIEW

Wendt (India) Limited was incorporated on August 21st 1983 under the provisions of the erstwhile Companies Act,1956, and is a joint venture between Wendt GmbH Germany and Carborundum Universal Limited, India. Wendt (India) Limited is a leading manufacturer of Super Abrasives, High precision Grinding, Honing and Special Purpose Machines and High Precision components. The Company's registered office is in Bangalore and factory is situated in Hosur, Tamilnadu.

NOTE 2 - SHARE CAPITAL (Rs. in lacs)

Note 2 (iii)

Rights, Preferences and Restrictions attached to shares

The Company has only one class of equity shares with voting rights (one vote per share). The dividends proposed by the Board of directors is subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the equity shareholders are entitled to receive only the residual assets of the Company. The distribution of dividend is in the proportion to the number of equity shares held by the shareholders.

NOTE

(a) The unclaimed dividend of Rs. 30.14 lacs represents those relating to the years 2007-08 to 2013-2014 and no part thereof has remained unpaid or unclaimed for a period of seven years from the date they became due for payment requiring transfer to the Investor Education and Protection Fund.

Note (i) :-Balance with banks includes Rs.10.52 lacs as deposits with remaining maturity of more than 12 months from the balance sheet date

Note (i)

The above excise duty relates to difference between the opening and closing stock of finished goods. The excise duty shown as deduction from sales in the statement of profit and loss represents excise duty on sales during the year.

Note - 3

NOTES FORMING PART OF THE FINANCIAL STATEMENTS ADDITIONAL INFORMATION TO FINANCIAL STATEMENTS

31.03.2015 31.03.2014

1 Contingent Liability and commitments to the extent not provided for:

1A Contingent Liabilities

a) Claims against the Company not acknowledged as debt: Disputed income 59.32 59.32 tax demands under appeal

The Company has received favourable orders from the Income Tax Appellate Tribunal (ITAT), in respect of two assessment years. In respect of one assessment year, the Company has received a favourable order from Commissioner of Income Tax - Appeals (CIT-A), but the order giving effect to the ITAT and CIT -A order is yet to be received by the Company.

The said amounts have been arrived at based on the assessment orders received from the relevant authority. Outflows, if any, arising out of this claim would depend on the outcome of the decision and the Company's rights for further appeal before the Judiciary.

1B Commitments

a) Estimated amount of contracts remaining to be executed on capital account 319.83 437.35

(in respect of tangible assets) and not provided for (net of advances Rs.40.39 lacs; previous year Rs.18.74 lacs)

b) Other Commitments

2 The Company has a working capital limit - - with State Bank of India, secured by hypothecation of stock and book debts and collateral charge on all fixed assets other than land and building. However, the Company has not utilized the said facility during the current / previous year.

3 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Particulars 31.03.2015 31.03.2014

(I) Principal amount remaining unpaid to any supplier as at the end of the accounting year 45.60 43.22

(ii) Interest due thereon remaining unpaid to any supplier as at the end of the accounting year - -

(iii) The amount of interest paid along with the amounts of the payment made to the supplier beyond the appointed day - -

(iv) The amount of interest due and payable for the year - -

(v) The amount of interest accrued and remaining unpaid at the end of the accounting year - -

(vi) The amount of further interest due and payable even in the succeeding year, until such date when the interest dues as above are actually paid - -

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

4 During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1,2014, the Company has revised the depreciation to align to the useful life with those assets specified in Schedule II

The details of previously applied depreciation method, rate / useful life are as follows:

Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be nil as on April 1,2014, and has adjusted an amount of Rs. 125.85 lacs (net of deferred tax of Rs. 64.80 lacs) against the opening Surplus balance in the Statement of Profit and Loss under Reserves and Surplus.

The depreciation expense in the Statement of Profit and Loss for the year is higher by Rs. 260.20 lacs consequent to the change in the useful life of the assets.

5. Employee Benefits I Defined Contribution Plans

During the year, the Company has recognized the following amounts in the Statement of Profit and Loss:

The estimate of future salary increases considered in actuarial valuation, is in respect of salary on which gratuity is payable and takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

A) Change in Present Value of Obligation :-

* The details with respect to the composition of investments in the plan assets have not been disclosed in the absence of the aforesaid information. Further, details of experience adjustments have not been disclosed in the absence of relevant information from the actuary.

The estimate of future salary increases considered in actuarial valuation, take account of infation, seniority, promotion and other relevant factors , such as supply and demand in the employment market.

6. SEGMENT DISCLOSURE

A) PRIMARY SEGMENT INFORMATION Notes on Segment Information

1) The Company is organised into two main business segments, namely : a) Super Abrasives and b) Machines, Accessories and Components.

The above segments have been identified taking into account the organisation structure as well as the differing risks and returns of these segments. The Company has identified business segments as his primary segments.

2) Segment Assets and Segment Liabilities of the Company's business have not been identified to any reportable segment, as these are used interchangeably between segments and hence segment disclosure relating to capital employed has not been given.

7 In accordance with Accounting Standard 18 'Related Party Disclosures', the Company has compiled the required information as detailed below.

1) List of Related parties

i) Party with whom control exists -Subsidiaries

a) Wendt Grinding Technologies Ltd, Thailand

b) Wendt Middle East FZE

ii) Venturers to the joint venture with whom transactions have taken place during the year

a) Carborundum Universal Limited (CUMI)

b) Wendt GmbH Germany

iii) Company in which director is a director

Ace Designers Ltd

iv) Key Management Personnel Mr.Rajesh Khanna, CEO

v) Relatives of Key Management Personnel

Mrs. Preethi Khanna - Wife of Mr. Rajesh Khanna

a) The related party relationships are as identified by the Company, on the basis of information available with the Company and relied upon by the auditors.

b) No amounts in respect of related parties have been written off / back other than any amount included above during the year.

c) Provision for diminution in value of investments in Wendt Middle East FZE Rs.76.56 lacs has been written back during the previous year.

8 Operating leases

a) The Company is obligated under cancelable operating leases towards residential accomodation, which are renewable at the option of both the lessor and the lessee. Total rental expense debited to the Statement of Profit and Loss under cancelable operating leases amounts to Rs. 12.00 lacs. (Previous year: Rs 9.50 lacs).

There are no sub-lease payments received / receivable recognised in the statement of profit and loss. Also, there are no contingent rents payable and there are no restrictions imposed by lease agreements such as those concerning dividends and additional debt.

b) The Company has leased out a portion of its factory building to a related party.

The lease agreement is for a period of 24 months and can be terminated by either party by giving one month notice.

Note:- Revenue expenditure shown above includes Depreciation on R&D assets of Rs. 34.92 lacs (Previous year Rs. 20.74 lacs) & Consultancy Services of Rs. 81.15 lacs (Previous year Rs. 91.15 lacs).

9 Previous year's figures have been regrouped / reclassified wherever necessary to make them comparable with the current year's classification / disclosure.

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Mar 31, 2014

Note - 1 31.03.2014 31.03.2013

1 Contingent Liability and commitments to the extent not provided for:

1A Contingent Liabilities

a) Claims against the Company not acknowledged as debt: Disputed income 59.32 59.32

tax demands under appeal

The Company has received favourable orders from the Income Tax Appellate Tribunal (ITAT), in respect of two assessment years. In respect of I one assessment year, the Company has received a favourable order from Commissioner of Income Tax - Appeals (CIT-A), but the order giving effect to the ITAT and CIT -A order is yet to be received by the Company.

The said amounts have been arrived at based on the assessment orders received from the relevant authority. Outflows, if any, arising out of this claim would depend on the outcome of the decision and the Company''s rights for further appeal.

1B Commitments

a) Estimated amount of contracts remaining to be executed on capital account I 437.35 565.11 (in respect of tangible assets) and not provided for (net of advances

Rs.18.74 lacs; previous year Rs.35.97 lacs)

b) Other Commitments - 75 00

2 The Company has a working capital limit with State Bank of India, secured by I hypothecation of stock and book debts and collateral charge on all fixed assets other than land and building. However, the Company has not utilized the said facility during the current / previous year.

3 Value of imports on CIF basis:

Raw Materials 2,262.15 1,930.35

Traded goods 102.26 119.28

Stores and Spare parts 86.47 81.92

Capital Goods 267.88 153.14

4 Expenditure in Foreign Currency

Royalty - 77.90

Technical consultancy fee 91.15 30.09

Travel 36.28 38.93

Commission - 8.31

Others 22.42 24.35

5 Earnings in Foreign exchange :

i) FO.B.Value of goods exported 2 338 29 1718 99

ii) Others. 298.00 34.14

6 Earning per share (EPS) is calculated as under

a) Numerator -

Profit for the year 1,186.81 1,011.83

b) Denominator - weighted average number of equity shares

Basic and diluted 2,000,000 2,000,000

c) Nominal value of shares (in rupees) 10 10 Earnings per share (in rupees)

Basic and diluted 59.34 50.59

7 Operating leases

a) The Company is obligated under cancelable operating leases towards residential accomodation, which are renewable at the option of both thelessor and the lesseeT. Total rental expense debited to the Statement of Profit and Loss under cancelable operating leases amounts to Rs. 9.50 lacs. (Previous year: Rs 6.00 lacs).

There are no sub-lease payments received/receivable recognised in the statement of profit and loss. Also, there are no contingent rents payable and there are no restrictions imposed by lease agreements such as those concerning dividends and additional debt.

b) The Company has leased out a portion of its factory building to a related party.

The lease agreement is for a period of 11 months and can be terminated by either party by giving one month notice.

Details of the above referred lease are as given below:

Gross carrying amount 1,463.92

Less: Accumulated Depreciation 268.08

Net carrying amount 1,195.84

The depreciation recognized in respect of the factory building for the year is Rs. 44.18 lacs. There are no contingent rents receivable.

2. In accordance with Accounting Standard 18 ''Related Party Disclosures'', the Company has compiled the required information as detailed below.

1) List of Related parties

i) Party with whom control exists -Subsidiaries a Wendt Grinding Technologies Ltd, Thailand b Wendt Middle East FZE

ii) Venturers to the joint venture with whom transactions have taken place during the year a Carborundum Universal Limited (CUMI) b Wendt GmbH Germany

3. SEGMENT DISCLOSURE

A) PRIMARY SEGMENT INFORMATION Notes on Segment Information

1) The Company is organised into two main business segments, namely : a) Super Abrasives and b) Machines, Accessories and Components.

The above segments have been identified taking into account the organisation structure as well as the differing risks and returns of these segments. The Company has identified business segments as its primary segments.

4. Previous year''s figures have been regrouped / reclassified wherever necessary to make them comparable with the current year''s classification / disclosure.

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Mar 31, 2013

A COMPANY OVERVIEW

Wendt (India) Limited was incorporated on August 21 st, 1983 under the provisions of the Companies Act, 1956, and is a joint venture between Wendt GmbH, Germany and Carborundum Universal Limited, India. Wendt (India) Limited is a leading manufacturer of Super Abrasives, High precision Grinding, Honing and Special Purpose Machines and High Precision components.The Company''s registered office is in Bangalore and factory is situated in Hosur, Tamilnadu.

1 Operating leases

The Company is obligated under cancelable operating leases towards residential accomodation, which are renewable at the option of both the lessor and the lessee. Total rental expense debited to the Statement of Profit and Loss under cancelable operating leases amounts to Rs.6.00 lacs (Previous year: Rs 6.09 lacs). There are no sub-lease payments received/receivable recognised in the statement of profit and loss. Also, there are no contingent rents payable and there are no restrictions imposed by lease agreements such as those concerning dividends and additional debt.

2 In accordance with Accounting Standard 18 ''Related Party Disclosures'', the Company has compiled the required information as detailed below.

1) List of Related parties

i) Party with whom control exists -Subsidiaries a Wendt Grinding Technologies Ltd, Thailand b Wendt Middle East FZE, Sharjah

ii) Venturers to the joint venture with whom transactions have taken place during the year a Carborundum Universal Limited (CUMI) b Wendt GmbH Germany

3 SEGMENT DISCLOSURE

A) PRIMARY SEGMENT INFORMATION Notes on Segment Information

1) The company is organized into two main business segments, namely : a) Super Abrasives and b) Machines, Accessories and Components.

The above segments have been identified taking into account the organisation structure as well as the differing risks and returns of these segments. The Company has identified business segments as its primary segments.

2) Segment Assets and Segment Liabilities of the Company''s business have not been identified to any reportable segment, as these are used interchangeably between segments and hence segment disclosure relating to capital employed has not been given.

4. Previous year''s figures have been regrouped / reclassified wherever necessary to make them comparable with the current year''s classification / disclosure.

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Mar 31, 2012

COMPANY OVERVIEW

Wendt (India) Limited was incorporated on August 21 st 1983 under the provisions of the Companies Act, 1956, and is a joint venture between Wendt GmbH, Germany and Carborundum Universal Limited, India. Wendt (India) Limited is a leading manufacturer of Super Abrasives, High precision Grinding, Honing and Special Purpose Machines and High Precision components.

31.03.2012 31.03.2011

1 Contingent Liability and commitments not provided for:

a) Disputed income tax demands under appeal 59.32 59.32 The company has received favourable orders from the Commissioner of Income Tax (Appeals) (CIT-A) in respect of two assessment years, however the department is in appeal with the Income Tax Appellate Tribunal. In respect of one assessment year, the Company has received a favourable order from CIT-A but the order giving effect to the CIT -A order is yet to be received by the Company.

The said amounts has been arrived at based on the assessment order received from the relevant authority. Outflows, if any, arising out of this claim would depend on the outcome of the decision and the Company's rights for further appeal before the Judiciary.

b) Guarantees given by Company's Bankers - 75.00

c) Bills Discounted 46.99 90.65

d) Estimated amount of contracts remaining to be executed on capital account 618.51 760.21 (in respect of tangible assets) and not provided for (net of advances Rs.48.05 lacs (previous year Rs.29.41 lacs)

e) Other commitments (in respect of goods and services) (net of advances of 180.98 22.94 Rs.47.86 lacs (previous year Rs.16.34 lacs)

2 The Company is having a working capital limit with State Bank of India, secured by hypothecation of stock and book debts and collateral charge on all fixed assets other than land and building. However, the Company has not utilized the said facility.

3 SEBI Disclosure requirement (as required under Clause 32 of the Listing Agreement)

Additional information to comply with SEBI disclosure requirement.

Loans and advances in the nature of loans to subsidiary

Wendt Middle East FZE, Sharjah 26.33 11.51

(Maximum amount outstanding Rs.81.51 lacs (previous year Rs.49.16 lacs))

4 Value of imports on CIF basis:

Raw Materials and Components 1,914.22 1,628.49

Traded goods 116.93 79.55

Stores and Spare parts 157.80 120.15

Capital Goods 562.94 167.13

5 Expenditure in Foreign Currency

Royalty 195.46 164.71

Travel 27.93 25.86

Commission 1.62 -

Others 1.67 2.43

6 Earnings in Foreign exchange :

i) F.O.B.Value of goods exported 1,946.43 1,446.02

ii) Others. 64.23 144.39

7 Earnings per share (EPS) is calculated as under

a) Numerator -

Net profit for the year 1,729.07 1,595.09

b) Denominator - weighted average number of equity shares Basic and diluted 2,000,000 2,000,000

c) Nominal value of shares (in rupees) 10 10 Earnings per share (in rupees)

Basic and diluted 86.45 79.76

8 Operating leases

The Company is obligated under cancelable operating leases towards residential accommodation, which are renewable at the option of both the lessor and the lessee. Total rental expense debited to the Statement of Profit and Loss under cancelable operating leases amounts to Rs.6.09 lacs (Previous year: Rs 5.32 lacs).

There are no sub-lease payments received/receivable recognized in the statement of profit and loss. Also, there are no contingent rents payable and there are no restrictions imposed by lease agreements such as those concerning dividends and additional debt.

9 In accordance with Accounting Standard 18 'Related Party Disclosures', the Company has compiled the required information as detailed below.

1) List of Related parties

i) Party with whom control exists -Subsidiaries a Wendt Grinding Technologies Ltd, Thailand

b Wendt Middle East FZE, Sharjah

ii) Venturers to the joint venture with whom transactions have taken place during the year a Carborundum Universal Limited (CUMI)

b Wendt GmbH, Germany

There are no outstanding derivative instruments as at the end of the year (previous year Rs.Nil)

10 SEGMENT DISCLOSURE

A) PRIMARY SEGMENT INFORMATION Notes on Segment Information

1) The company is organized into two main business segments, namely :

a) Super Abrasives and b) Machines, Accessories and Components.

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments.

2) Segment Assets, Segment Liabilities and Fixed Assets used in Company's business have not been identified to any reportable segment, as these are used interchangeably between segments and hence segment disclosure related to total carrying amount of segment assets, liabilities and fixed assets have not been given.

12. The Revised Schedule VI has become effective from 1st April 2011 for the preparation and presentation of the financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to make them comparable with the current year's classification / disclosure.

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Mar 31, 2011

(Rs. in 000s)

31.03.2011 31.03.2010

A 1 Contingent Liability not provided for:

a) Disputed income tax demands under appeal 5,932 5,932 The company has received favourable orders from the Commissioner of Income Tax (Appeals) (CIT-A) in respect of two assessment years, however the department is in appeal with the Income Tax Appellate Tribunal. In respect of one assessment year, the Company has received a favourable order from CIT-A but the order giving effect to the CIT -A order is yet to be received by the Company.

The said amounts has been arrived at based on the assessment order received from the relevant authority. Outflows, if any, arising out of this claim would depend on the outcome of the decision and the Companys rights for further appeal before the Judiciary.

b) Guarantees given by Companys Bankers 18,551 6,313

c) Bills Discounted 9,065 1,990

2 The Company is having a working capital limit with State Bank of India, secured by hypothecation of stock and book debts and collateral charge on all fixed assets other than land and building.

3 During the year the Company, based on the Boards approval has converted loan given to Wendt Middle East FZE a subsidiary, into equity amounting to Rs.3,685 (000s). The Company has completed the necessary regulatory formalities in this regard. Accordingly the investment in the said subsidiary stands increased to Rs.15,316 (000s) from Rs.11,631 (000s)

4 There are no dues to Micro and Small Enterprises as per Micro, Small and Medium Enterprises Development Act 2006 which are outstanding for more than 45 days at the Balance Sheet date. The above information has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors

5 The unclaimed dividend of Rs. 2,120 (000s) represents those relating to the years 2004 to 2010 and no part thereof has remained unpaid or unclaimed for a period of seven years from the date they became due for payment requiring transfer to the Investor Education and Protection Fund.

6 Deferred Tax

6.1 Notes

Tax provision has been made in accordance with the requirements under the Accounting Standard 22 "Accounting for Taxes on Income" as detailed below.

7 In accordance with Accounting Standard 18 Related Party Disclosures, the Company has compiled the required information as detailed below.

1) List of Related parties

I) Party with whom control exists -Subsidiaries

a Wendt Grinding Technologies Ltd

b Wendt Middle East FZE

ii) Venturers to the joint venture with whom transactions have taken place during the year

a Carborundum Universal Limited (CUMI)

b Wendt GmbH Germany

Transaction with related parties

a) The related party relationships are as identified by the Company, on the basis of information available with the Company and relied upon bytheauditors.

b) No amounts in respect of related parties have been written off/ back other than any amount included above during the year.

8. Employee Benefits

I Defined Contribution Plans

a. Provident Fund

b. Superannuation Fund

c. Employers Contribution to Employees State Insurance

d. Employers Contribution to Employees Pension Scheme 1995.

II Defined Benefit Plan

a) Contribution to Gratuity Fund :

The estimate of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

9 Segment Disclosure

A) PRIMARY SEGMENT INFORMATION

Notes on Segment Information

1) The company is organised into two main business segments, namely:

a)Super Abrasives & b) Machines, Accessories and Components.

The above segments have been identified taking into account the organisation structure as well as the differing risks and returns of these segments.

2) Segment Assets, Segment Liabilities & fixed assets used in Companys business have not been identified to any reportable segment, as these are used interchangeably between segments and hence segment disclosure related to total carrying amount of segment assets, liabilities and fixed assets have not been given.

10 Previous years figures have been reclassified / regrouped wherever necessary to facilitate comparison with those for the current year

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Mar 31, 2010

1 Contingent Liability not provided for:

31.03.2010 31.03.2009

a) Disputed income tax demands under appeal 59,32 59,32

b) Guarantees given by Companys Bankers 63,13 11,75

c) Bills Discounted LC 19,90 2,08



2 Micro and Small Enterprises as per the Micro , Small and Medium Enterprises Development Act 2006 have been identified by the company based on the information available with the company. This has been relied upon by the auditors. Based on such identification there are no dues outstanding to such parties for more than 45 days as at the Balance Sheet date.

3 The unclaimed dividend of Rs. 18,36 (000) represents those relating to the years 2003 to 2009 and no part thereof has remained unpaid or unclaimed for a period of seven years from the date they became due for payment requiring a transfer to the Investor Education and Protection Fund.

3.1 Notes

Tax provision has been made in accordance with the requirements under the Accounting Standard 22 “Accounting for Taxes on income " as detailed below.

4 In accordance with Accounting Standard 18 Related Party Disclosures , the Company has compiled the required information as detailed below.

1) List of Related parties

i) Party with whom control exists -Subsidiaries

a Wendt Grinding Technologies Ltd

b Wendt Middle East FZE

ii) Parties having significant influence with whom transactions have taken place during the year

a Carborundum Universal Limited (CUMI)

b Wendt GmbH Germany

a) The related party relationships are as identified by the Company, on the basis of information available with the Company and relied upon by the auditors.

b) No amounts in respect of related parties have been written off / back other than any amount included above during the year.

5. Employee Benefits

I Defined Contribution Plans

a. Provident Fund

b. Superannuation Fund

c. Employers Contribution to Employees State Insurance

d. Employers Contribution to Employees Pension Scheme 1995.

* Included in Contribution to provident and other funds (Refer Schedule 10)

II Defined Benefit Plan

The estimate of future salary increases ,considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors , such as supply and demand in the employment market.

* The details with respect to the composition of investments in the fair value of plan assets have not been disclosed in the absence of the aforesaid information.

The estimate of future salary increases ,considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors , such as supply and demand in the employment market.

6 Segment Disclosure

Segment Assets, Segment Liabilities & fixed assets used in Companys business have not been identified to any reportable segment, as these are used interchangeably between segments and hence segment disclosure related to total carrying amount of segment assets, liabilities and fixed assets have not been given.

7 Previous years figures have been reclassified regrouped wherever necessary to facilitate comparison with those for the current year.