Wintac Ltd Management Discussions.


India is the largest provider of generic drugs globally. Indian pharmaceutical sector industry supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in UK.

The pharmaceutical sector was valued at US$ 33 billion in 2017. The countrys pharmaceutical industry is expected to expand at a CAGR of 22.4 per cent over 2015-20 to reach US$ 55 billion. Indias pharmaceutical exports stood at US$ 17.27 billion in FY18 and have reached US$ 15.52 billion in FY19 (up to January 2019). Pharmaceutical exports include bulk drugs, intermediates, drug formulations, biologicals, Ayush & herbal products and surgicals. The country accounts for around 30 per cent (by volume) and about 10 per cent (value) in the US$ 70-80 billion US generics market.


The Government of India unveiled Pharma Vision 2020 aimed at making India a global leader in end-to-end drug manufacture. Approval time for new facilities has been reduced to boost investments.

The Indian government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies.

India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers who have the potential to steer the industry ahead to an even higher level.


The operational performance of the Company during the year under review improved with increase in export sales.

The net sales during the year under review was 7192.01 lakhs as compared to 4479.70 lakhs during the previous year, a growth of 60.55%. The net profit after tax during the current year was 10.91 lakhs as against the loss of 979.22 lakhs during the previous year, a turnaround in the operations during the year. The total comprehensive income for the year was a loss of 15.96 lakhs as compared to a loss of 989.54 lakhs during the previous year. The improved operating results are due to increase in the export supplies to 5931 lakhs as compared to 2759 lakhs during the previous year. During the year USFDA approval ANDAs for 11 products resulting in increase in export sales. Few more number of product approvals are expected during the financial year 2019-20.

In order to cater to the export US Market on approval of more ANDAs/Products, the Company has set-up additional capacities for injectable and ophthalmic products during the current financial year at a cost of 56 crores.


The operational costs of the Manufacturing plant are considerably higher to meet the international quality standards. The additional capacities built during the year would further increase the cost of operations. The approval and commercialization of more products and optimum utilization of capacities would be very crucial for the Company. The delay in approval of more products by the regulatory authorities increases the risk of losses.

During the financial year 2018-19, the Promoters of the Company had made a proposal to delist the equity shares of the Company from the Stock Exchange in compliance with SEBI (Delisting of Equity Shares) Regulations, 2009 and the Shareholders of the Company also approved the proposal by way of a Special Resolution through Postal Ballot on July 06, 2018. However, during the year the promoters could not proceed with the delisting proposal awaiting the approval of Department of Pharmaceuticals (DOP), Government of India for increasing their shareholding limits in the company to 100%. The DOP did not accede to the proposal as one of the conditions of the previous approval dated 16.01.2018 which required furnishing of annual compliance of the conditions of the said approval, has not been complied with. The Promoters have since complied with the said condition by filing the annual compliance report and have made a fresh application seeking approval for enhancing shareholding limits up to 100% in Wintac Limited. The Promoters have reaffirmed their intention to pursue the delisting proposal in compliance with the SEBI (Delisting of Equity Shares) Regulations.

The proposal for slump sale of the pharmaceutical business undertaking of the Company to Par Formulations Pvt. Ltd., as approved by the Shareholders through Postal Ballot on July 06 2018, was terminated by Par Formulations for non-fulfillment of certain conditions within the stipulated time limits.


The Company has adequate Internal Control System commensurate with its size and nature of business. The Internal controls are regularly audited by an external firm of Chartered Accountants. The internal audit program aims at reasonable reassurance of operating controls and continuously upgrading controls to meet requirements of the changing environment. The Audit Committee oversees the internal audit function, compliance with the Companies policies and procedures and facilitates the management to take preemptive steps to minimize exceptions based on the materiality of transactions.


The Company reported an operating profit of 10.91 lakhs during the year as compared to operating loss of 979.22 lakhs during the previous year. The operating profit before interest and depreciation and exceptional items was 495.55 lakhs as compared to a loss of 544.98 lakhs during the previous year. The total interest cost for the year was at 93.38 lakhs as against 89.92 lakhs during the previous year.

The Company during the year short closed the Working Capital Loan and Term Loan from State Bank of India and availed a fresh working capital loan of 15 crores, Corporate Term Loan of 35 crores and a Project Term Loan of 80 crores.

The servicing of interest and repayment instalments of the bank borrowings was regular and on time during the year.


As on 31st March 2019, there were 351 employees on the rolls of the Company and the relationship with the employees has been very cordial.


2018-19 2017-18
i. Debtors Turnover 52.96 20.26
ii. Inventory Turnover 1.98 2.21
iii. Interest Coverage Ratio 0.84 (9.94)
iv. Current Ratio 0.25 0.28
v. Debt Equity Ratio (11.00) (1.00)
vi. Operating Profit Margin (%) 0.01% (0.20%)


For Wintac Limited
Date : 22.05.2019 Sunil Gundewar
Place: Bengaluru Manager & C.O.O.