(i) Disclosure of Accounting Policies -amendments to Ind AS 1
(ii) Definition of Accounting estimates -amendments to Ind AS 8
(iii) Deferred tax related to assets and liabilities arising from a single transcation - amendments to Ind AS 12
The other amendments to Ind AS notified by these rules are primarily in the nature of clarifications.
These amendments did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods. Specifically, no changes would be necessary as a consequence of amendments made to Ind AS 12 as the company's accounting policy already complies with the now mandatory treatment.
2.2 Critical estimates and judgements
The preparation of these financial statements requires the use of accounting estimates which, by definition, which seldom equals the actual results.
Management also needs to exercise judgement in applying the Company's accounting policies. This note provides an overview of the areas that involved higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in the relevant notes together with information about the basis of calculation for each affected line item in the financial statements.
The areas involving critical estimates or judgements are:
(i) Estimation of defined benefit obligation - refer note 32
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.
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. The Company is into manufacturing, selling and servicing of Super Abrasives, High precision Grinding, Honing , Special Purpose Machines and High Precision components. The Company's registered office is in Bangalore and factory is situated in Hosur, Tamilnadu. The CIN of the Company is L85110KA1980PLC003913.
2.1 Basis of preparation and presentation
(i) Compliance with Ind AS
The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the act) [Indian Accounting Standards Rules, 2015] and other relevant provisions of the Act.
(ii) Historical cost convention
The financial statements have been prepared on the historical cost basis, except for certain
financial instruments which are measured at fair values at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
(iii) Operating cycle
Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
(iv) New and amended standards adopted by the Company
The Ministry of Corporate Affairs had vide notification dated March 31, 2023 notified Companies (Indian Accounting Standards) Amendment Rules, 2023 which amended certain accounting standards, and were effective April 1,2023.
Note 3 - Property, plant and equipment Accounting Policy
Freehold Land is carried at historical cost. All other items of Property, plant and equipment are stated at historical cost less accumulated depreciation.
Depreciation
Depreciation is calculated using the straight-line
method to allocate the cost of the assets (other than freehold land and Capital work-in-progress), net of their residual values over their useful lives. The estimated useful lives, residual value and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
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Estimated useful lives of the Property, plant and equipment as considered by the Company, which are in line with those specified under Schedule II to the Companies Act, 2013, are as follows:-
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Buildings - Freehold
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(i) Factory Building
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30 years
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(ii) Building (Other than factory building)
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60 years
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Plant and Machinery
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(i) Single Shift
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15 years
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(ii) Double Shift
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10 years
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(iii) Triple Shift
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7.5 years
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Office Equipment
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(i) Computers and Data Processing equipments
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3 years
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(ii) Servers and Networks
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6 years
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(iii) Others
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5 years
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Furniture and fittings
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10 years
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Motor Vehicles
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8 years
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Refer note 42(f) and 42(h) on other accounting policies
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