Wintac - Limited Review For The Quarter Ended Sep 30, 2007

Wintac Ltd has informed that in the limited review report of the Company for the quarter ended September 30, 2007, the Auditors of the Company have made the following observations :

1. The Auditors are unable to assess the recoverability and consequent provision required in / the accounts in respect ofa. Balance of Rs 315.89 lakhs due from erstwhile subsidiary Recon Agrotech Ltd in respect of which only Rs 283 lakhs provided.

b. Amount due from a Joint Venture Company Medispec Pharmaceuticals (P) Ltd whose net worth has totally eroded. Balance as on September 30, 2007 Rs 726.51 lakhs (balance subject to reconciliation and confirmation).

c. Other long outstanding balances aggregating to Rs 35.04 lakh under sundry debtors and Rs 108.89 lakh under advances (as ascertained during the course of Auditors audit for the financial year ended March 31, 2007) in respect of which only Rs 36 lakhs provided.

2. No provision has been made in the accounts towards the diminution in value of Investment of Rs 90 Lakhs in the Joint Venture Company Medispec Pharmaceuticals (P) Ltd despite erosion of its net worth as the directors are of the opinion there will be no decline in value.

3. (a) The accounts are subject to adjustments if any arising from obtaining confirmation of balances from debtors, Creditors and in respect of Advances and reconciling the same. The results are also subject to reconciliation of Cenvat and VAT / Sales Tax records with the financial books.

(b) Basis of apportionment of expenditure on co marketing between the company and the Joint Venture Company Medispec Pharmaceuticals P Ltd is subject to review / confirmation.

(c) The valuation of closing stock is provisional and not supported by cost sheets and the stock is subject to physical verification.

(d) Depreciation has also been computed provisionally.