WindarPhotonics AnnualReport 2018 All - Flipbook - Page 38
INDEPENDENT
AUDITOR´S REPORT
TO THE MEMBERS OF WINDAR PHOTONICS PLC
For the year ended 31 December 2018
OPINION We have audited the financial statements of Windar Photonics Plc (the ‘Parent
Company’) and its subsidiaries (the ‘Group’) for the year ended 31 December 2018 which
comprise the consolidated statement of profit or loss and other comprehensive income, the
consolidated and company statement of financial position, the consolidated and company
cash flow statement, the consolidated and company statement of changes in equity and
notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework
that has been applied in the
preparation of the financial
statements is applicable law and
International Financial Reporting
Standards (IFRSs) as adopted by
the European Union and, as
regards the Parent Company
financial statements, as applied in
accordance with the provisions of
the Companies Act 2006.
In our opinion:
• the financial statements give a
true and fair view of the state of
the Group’s and of the Parent
Company’s affairs as at 31 December 2018 and of the Group’s loss
for the year then ended;
• the Group financial statements
have been properly prepared in
accordance with IFRSs as adopted
by the European Union;
• the Parent Company financial
statements have been properly
prepared in accordance with IFRSs
as adopted by the European Union
and as applied in accordance with
the provisions of the Companies Act
2006; and
• the financial statements have
been prepared in accordance with
the requirements of the Companies
Act 2006.
BASIS FOR OPINION
We conducted our audit in
accordance with International
Standards on Auditing (UK) (ISAs
(UK)) and applicable law. Our
responsibilities under those
standards are further described in
the Auditor’s responsibilities for
36
the audit of the financial
statements section of our report.
We are independent of the Group
and the Parent Company in
accordance with the ethical
requirements that are relevant
to our audit of the financial
statements in the UK, including
the FRC’s Ethical Standard as
applied to listed entities, and we
have fulfilled our other ethical
responsibilities in accordance with
these requirements. We believe
that the audit evidence we have
obtained is sufficient and
appropriate to provide a basis
for our opinion.
MATERIAL UNCERTAINTY
RELATED TO GOING
CONCERN:
We draw attention to Note 3 of the
financial statements concerning
the Group and the Parent
Company’s ability to continue as
a going concern. The matters
explained in Note 3 relating to
the uncertainty around the timing
of revenue receipts and the impact
thereof on the Group and Parent
Company’s ability to fund its
operations indicate the existence of
a material uncertainty which may
cast significant doubt over the Group
and Parent Company’s ability to
continue as a going concern.
Our opinion is not modified in
respect of this matter.
We have highlighted going concern
as a key audit matter based on our
assessment of the significance of
the risk and the effect on our audit
strategy.
Windar Photonics - Annual Report and Accounts 2018
Our audit procedures in
response to this key audit
matter included:
• Analysing the Directors’ cashflow forecast which forms the
basis of their assessment that the
going concern basis of preparation
remains appropriate for the
preparation of the Group and
Company financial statements
for a period of at least twelve
months from the date of approval
of these financial statements – the
assumptions in this forecast were
considered against our knowledge
of business trends and external
documentation where available
• Assessing and sensitising key
figures included within the cashflow forecast and where available
agreeing these key figures to other evidence obtained during the
course of our audit work
• Testing the mathematical
integrity of the cashflow model
in order to check the basis of
preparation of the model is in
line with our expectations
• Discussing with Management
and the Board the Group’s
strategy to continue to ensure
funds are available to the Group
to fund its operations, confirming
statements made to publically
available information and third
party documentation where
available
• Reviewing and considering the
adequacy of the disclosure within
the financial statements relating
to the Directors’ assessment of
the going concern basis of
preparation.