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Wintac Ltd.

BSE: 524758 Sector: Health care
NSE: N.A. ISIN Code: INE812C01016
BSE 00:00 | 10 Aug 192.00 3.70
(1.96%)
OPEN

188.00

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201.00

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188.00

NSE 05:30 | 01 Jan Wintac Ltd
OPEN 188.00
PREVIOUS CLOSE 188.30
VOLUME 8063
52-Week high 228.00
52-Week low 64.30
P/E
Mkt Cap.(Rs cr) 192
Buy Price 192.30
Buy Qty 10.00
Sell Price 198.50
Sell Qty 85.00
OPEN 188.00
CLOSE 188.30
VOLUME 8063
52-Week high 228.00
52-Week low 64.30
P/E
Mkt Cap.(Rs cr) 192
Buy Price 192.30
Buy Qty 10.00
Sell Price 198.50
Sell Qty 85.00

Wintac Ltd. (WINTAC) - Auditors Report

Company auditors report

TO THE MEMBERS OF WINTAC LIMITED

Report on Audit of the Standalone Financial Statements Opinion:

We have audited the standalone Ind AS financial statements of Wintac Limited ("theCompany") which comprise of balance sheet as at March 31 2019 the statement ofprofit & loss statement of changes in equity and the cashflow statement for the yearthen ended and notes to Ind AS financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2019 and Loss changes in equity and its cash flows for the yearended on that date.

Basis of Opinion:

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013 ("the Act"). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the Ind AS financial statements under the provisions of the Act and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters:

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements for the financial year endedMarch 31 2019. These matters were addressed in the context of our audit of the Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. For each matter below our description of how ouraudit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the Ind AS financial statements section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the Ind AS financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying Ind AS financial statements.

Key audit matters How our audit addressed the key audit matter
Adoption of Ind AS 115- Revenue from Contract with customers as described in note 2j and note 21 of financial statements :
The Company has adopted Ind AS 115- Revenue from Contracts with Customers mandatory for reporting periods beginning on or after April 1 2018. As part of our audit procedures our procedures included the following :-
Application of Ind AS 115 including selection of transition method involves significant judgement in determining when "control" of the goods or services underlying the performance obligation is trans- - We have read the accounting policy for revenue recognition and assessed compliance of the policy in terms of principles enunciated under ' AS 115.
ferred to the customer and the transition method - We obtained and understood the revenue
to be applied. recognition process including determination of point of transfer of control and completion of performance obligation.
As the revenue recognition due to the significance of the balance to the financial statements as a whole we regard this as a key audit matters. - We performed test of details on a sample basis and examined the underlying customer contracts.
- We examined the disclosures made by management in compliance with the requirements of Ind AS 115.
Conclusions :
Our procedures die not identify and material exceptions.

Material Uncertainty Related to Going Concern:

Attention of the members is invited to Note 46 to the Ind AS financial statements whichindicate that the Company has incurred as loss of '15.96 lakhs for the year ended March31 2019 and as on that date the Company's total liabilities exceed its total assets by'438.13 Lakhs. These events or conditions along with other matters stated in note 46indicate that a material uncertainty exists that may cast significant doubt on theCompany's ability to continue as going concern. Our opinion is not modified in thismatter.

Other Information [or another title if appropriate such as "Information Otherthan the Financial Statements and Auditor's Report Thereon"]

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the board report but does not includethe financial statements and our auditor's report thereon.

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

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is no material misstatement of this other informationwe are required to report that fact. We have nothing to report in this regard.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

Management's Responsibility for Standalone Ind AS Financial Statements:

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone Ind AS financialstatements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the accounting standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance ofaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process. Auditor's Responsibilities for the Audit of the Financial Statements:

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

As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional scepticism through the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

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

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

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

• Evaluate the overall presentation structure and content of the consolidatedfinancial statements including the disclosures and whether the consolidated financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

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

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

Report on Other Legal and Regulatory Requirements:

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure - A a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

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

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

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

c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andStatement of changes in equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure - B".

g) With respect to the other matters to be included in the Auditor's Report inaccordance with requirement of Section 197 (16) of the Act as amended:

In our opinion and according to the information and explanation given to us theremuneration paid during the current year by the Holding Company and its subsidiarieswhich are incorporated in India is in accordance with the provisions of Section 197 of theAct. The remuneration paid to any director by the Company is not in excess of the limitlaid down under Section 197 of the Act. The Ministry of Corporate Affairs has notprescribed other details under Section 197(16) which are required to be commented upon byus.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i) The Company has disclosed its pending litigations which would impact its financialposition in note 35 of the Ind AS financial statements.

ii) The Company did not have any long-term contracts as required under the applicablelaw or accounting standards and also not entered into any derivative contractsaccordingly no provision is required to be made in respect of material foreseeable losses.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

FOR B.K. RAMADHYANI & CO LLP
Chartered Accountants
Firm Registration No. 002878S/S200021
(CA C R Deepak)
Place: Bengaluru Partner
Date : 22nd May 2019 Membership No. 215398

ANNEXURE-A REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS" OF OUR REPORT TO THE MEMBERS OF WINTAC LIMITED.

1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant & Equipment ("PPE").

b) Management during the year has physically verified PPE as per a phased program ofphysical verification. The discrepancies noticed on such verification were not materialand the same has been properly dealt with in the books of account.

c) According to the information and explanation given to us by the Company title deedof all immovable properties IS held in the name of the Company except for cases reportedin additional information to note 3 C. of the financial statements.

2. The management during the year has physically verified the inventory at reasonableintervals. The discrepancies that were noticed during the physical verification ofInventory were not material and the same has been properly adjusted in the books ofaccount.

3. The Company has not granted any loans to the parties covered in the registermaintained under section 189 of the Act. Accordingly clause 3(iii) of the Order is notapplicable.

4. Based on the information and explanations given to us the Company has not grantedany loans made any investments given guarantees and securities as referred in theprovisions of section 185 and 186 of the Act. Hence clause 3(iv) of the Order is notapplicable.

5. The Company has not accepted any deposits as applicable under the directives issuedby the Reserve Bank of India and the provisions of sections 73 to 76 or any otherprovisions of the Act and rules framed their under. Accordingly the provisions of clause3(v) of the said Order are not applicable.

6. Based on the information and explanations given to us the Company has maintainedcost records as prescribed under clause (d) of sub-section (1) of section 148 of the Act.

7. a) According to the records of the Company the Company is generally regular indepositing undisputed statutory dues including Income Tax service tax goods &service tax customs duty excise duty value added tax cess and any other statutory duesto the appropriate authorities. There are no undisputed statutory dues exceeding sixmonths from the date they are payable as at March 31 2019.

b) According to the records of the Company and according to the information andexplanation given to us there are certain dues outstanding on account of any disputes inrespect of income tax service tax customs duty or excise duty or value added tax refernote 35 of the Ind AS financial statements. The summary is given below:

Name of the Statute Nature of Dues Amount ('in Lakhs.) Amount paid under protest (' in lakhs) Period to which the amount relates Forum where dispute is pending
The Central Excise Act 1994 Valuation of Physician samples 44.95 NIL 2005.-06 CESTAT Bengaluru
The Central Excise Act 1994 Penalty demanded under 209A of the Central Excise Rules 2.00 NIL CESTAT Ahmedabad
The Finance Act 1944 Tax demanded on export of technical services 254.87 25.49 2013-16 Tribunal
The Finance Act 1994 Tax demanded under RCM on fees paid to USFDA 75.46 5.66 CCT (appeals)
The Central Sales Tax 1956 Difference in sales tax for non- submission of statutory forms 2.33 1.75 2003-04 DCST-Navi Mumbai

 

Name of the statute Nature of the dues Amount ('in Lakhs.) Amount paid under protest (' in lakhs) Period to which the amount relates Forum where dispute is pending
The Income Tax Act 1961 Appeal against order of rectification passed by AO 38.26 70 AY 2001-02 High Court of Karnataka
The Income Tax Act 1961 Appeal against order of Assessment 7.11 NIL AY 2011-12 ITAT Bengaluru
The Income Tax Act 1961 Fringe Benefit tax 5.24 NIL 2008-09 ITAT Bengaluru
The Central Excise Act1994 Excise duty on sale of brands to Recon Healthcare Pvt Ltd 400.00 NIL 2001-02 Supreme Court
Employees Provident Funds & Miscellaneous Provisions Act 1952 Levy of damages for delay in remittance of PF Dues 32.37 NIL 1996-2013 Tribunal

8. The Company has not defaulted in repayment of loans taken from banks. The Companyhas not borrowed from financial institutions or government or has issued debentures.

9. In our opinion based on the information and explanation given to us by the Companyit has not raised any moneys by way of initial public offer or further public offer(including debt instruments and term loans. Accordingly the provisions of clause 3(ix) ofthe said Order is not applicable.

10. According to the information and explanation given to us there are no fraudsreported by the Company or any fraud on the Company by its officers or employees has beennoticed or reported during the year. Accordingly the provisions of clause 3(x) of thesaid Order are not applicable.

11. According to the information and explanation given to us the Company haspaid/provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V of the Act.

12. The Company is not a nidhi company. Accordingly the provisions of clause 3(xii) ofthe said Order are not applicable.

13. In our opinion and according to the information and explanation given to us and asrepresented to us by the management all transactions with the related parties are incompliance with section 177 and 188 of the Act and the details have been disclosed in theNote 43 of the Ind AS financial statements as required by the applicable accountingstandards.

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of clause 3(xiv) of the said Order are not applicable.

15. As represented to us by the management and according to the information andexplanation given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3(xv) ofthe said Order are not applicable.

16. According to the information and explanation given the Company is not required tobe registered under section 45-IA of the Reserve Bank of India Act 1934. Accordinglyclause 3(xvi) of the Order is not applicable to the Company.

FOR B.K. RAMADHYANI & CO LLP
Chartered Accountants
Firm Registration No. 002878S/S200021
(CA C R Deepak)
Place: Bengaluru Partner
Date : 22nd May 2019 Membership No. 215398

ANNEXURE - B REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING " REPORT ON OTHERLEGAL AND REGULATORY REQUIREMENTS' OF OUR REPORT TO THE MEMBERS OF WINTAC LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act"):

We have audited the internal financial controls over financial reporting of WintacLimited ("the Company") as of March 31 2019 in conjunction with our audit ofthe financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls:

The Company's management is responsible for establishing and maintaining internalfinancial controls based on "the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013 ("the Act").

Auditors' Responsibility:

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

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

Meaning of Internal Financial Controls Over Financial Reporting:

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting:

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

Opinion:

In our opinion the Company in all material respects has an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2019 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

FOR B.K. RAMADHYANI & CO LLP
Chartered Accountants
Firm Registration No. 002878S/S200021
(CA C R Deepak)
Place: Bengaluru Partner
Date : 22nd May 2019 Membership No. 215398