27 august, 2020 · 2020. 8. 27. · 27" august, 2020 bse limited national stock exchange of...

an entertainment company

Regd. Office : Mukta House, Behind Whistling Woods Institute, Filmcity Complex, Goregaon (East), Mumbai - 400 065. TEL .: 91-22-3364 9400

27" August, 2020

BSE Limited National Stock Exchange of India Limited Phiroze Jeeyjeeboy Towers Exchange Plaza, 5th Floor Plot no. C/1, G Dalal Street, Fort, Block, Bandra Kurla Complex, Mumbai 400 001 Bandra (East), Mumbai 400 051 BSE Scrip Code: 532357 NSE Scrip Symbol: MUKTAARTS

Kind Attn: Corporate Relations Department

Dear Sirs,

Subject; Qutcome of the Board Meeting and Results for June, 2020 quarter

Further to our letter dated 19" August, 2020 and pursuant to the Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company at its meeting held today viz., 27" August, 2020 considered and approved:

The Unaudited Standalone and Consolidated Financial Results along with segment wise results of the Company for the quarter ended 30" June, 2020 and Limited Review Report in pursuance to SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015;

The Board Meeting commenced at 12.00 pm and concluded at 1:30 pm.

Please take the same on records accordingly and oblige.

Thanking you,

Yours Faithfully, For and on behalf of

Mukta Arts Limited

Company Secretary

Encl: As above.

MOVIES e MUSIC ¢ TELEVISION * TECHNOLOGY * STUDIOS * SOFTWARE ¢ NETWORK « ENTERTAINMENT CENTER

CIN : £92110MH1982PLC0O28180 @ Website : www.muktaarts.com

MUKTA ARTS LIMITED

CIN: L92110MH1982PLC028180

Regd

. Of

fice

: Mukta House, Behind Wh

istling Woods

institut

e,

Film

Ci

ty Compiex, Goregaon

(El,

‘Mumbai-400

065

Part

1 - Statement

of Consolidated unaudited

resu

lts

for

the

quarter

ended 30

Ju

ne 2020

SD ee ee

. ae

Po

eee

(Rs

in lakhs, e

xcept

per

shar

e data}

Consolidated

3 Months Ended

30 June 2018

{Unaudited}

Standalone

3 Months Ended

30 June 2079

(Unaudited)

S.No

Particulars

12 Months ended

31 March 2026

{Audited}

12 months ended

32 March 2670

{Audited}

31 March 20

20

{Unaudited

}

30 Ju

ne 2020

{Unaudited}

30 June 2020

(Unaudited)

31 March 2020

(Unaudited)

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30 June 2020

30 Ju

ne 20

19

31 March

27020

31 March

2020

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ne 20

20

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ne 20

19

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31 March 2020

(Unaudited)

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(Audited)

(Unaudited)

(U

naua

gite

d)

(Unaudited)

(Audited)

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Software division

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tric

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Education

| Ot

hers

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tal

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venue

>

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sales/

in

come

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om

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Page

2

| ce

wo

oh

peer

bi,

[Dat

e |P

lace

_

peMumbai

Mana

ging

Director —

NOTES:

The

abov

e fin

ancial

res

ults

have b

een

revi

ewed

by

the

audit

committee

and approved

by t

he

Board

of Directors

at t

he m

eeting h

eld

on

27 August|

2020.

In terms

of order

dated

9.02.2012

passed

by the

High

Court

of Judicature

at Bombay (‘High

Cour

t’),

Maharashtra

Film S

tage

and Cultural D

evelop

ment|

Corporation

("MFSCDC’)

raised

net

demand

of

Rs.

591,966,210

and

asked

Whistling

Woods

International

Limited

(WWIL)

to va

cate

the

premises.

The

Company's

and

WWIL’s

Review

Petitions

were

heard

by

High

Court

and

a st

ay was

gran

ted

on

30

July 20

14.

However,

the

High

PRP ee Ge cay

a oe ae ea a eee ee

an entertainment company

Regd. Office : Mukta House, Behind Whistling Woods Institute, Filmcity Complex, Goregaon (East), Mumbai - 400 065. TEL .: 91-22-3364 9400

PRESS RELEASE

2/tn August 2020, Mumbai

Mukta Arts Limited started this difficult year on a positive note with Standalone Q1

Revenue matching 2020 Q4 Revenue and PBT doubling to Rs 357 lacs.

Whistling Woods International, its subsidiary in the education space

Phone No.: 2887 8000

2887 0069

Uttam Abuwala Ghosh & Associates Website: http://www.uttamabuwala.com Chartered Accountants

Independent Auditor’s Review Report on quarterly unaudited standalone financial results of Mukta Arts Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

To

The Board of Directors of

Mukta Arts Limited

1. We have reviewed the accompanying statement of unaudited standalone financial results of M/s Mukta Arts Limited (“the Company”) for the quarter ended June 30 , 2020 (“the statement”) attached herewith, being submitted by the company pursuant to the requirement of Regulation 33 of SEBI (Listing Obligation and Disclos@re Requirement) Regulations, 2015 (‘Listing Regulations’) as amended.

2. The preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, read with the Circular is the responsibility of the Company's management and has been approved by the Board of Directors of the Company. Our responsibility is to express a conclusion on the statement based on our review.

3. We conducted our review of the statement in accordance with the Standard on Review Engagement (SRE) 2410, “Review of Interim Financial Information performed by the Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not

performed an audit and accordingly, we do not express an audit opinion.

4. As at June 30, 2020, the company’s investment in its subsidiary (including deemed investment), Whistling woods International Limited (WWIL) a joint venture between the company and Maharashtra Film, Stage and Cultural Development Corporation Limited (MFSCDCL), aggregates to Rs. 19,95,11;218/- and loans and advances and interest receivable Rs.59,00,95,322/- recoverable from WWIL. As fully explained in Note 2 to the accompanying unaudited financial statements, the Order of February 9, 2012 passed by the High Court of judicature at Bombay (‘High Court’), had quashed the joint Venture Agreement (‘JVA’) between the company and Maharashtra Film Stage Cultural Development Corporation (‘WFSCDCL’). Maharashtra Film Stage and Cultural Development Corporation (‘WFSCDC’) raised net demand of Rs. 59,19,66,210/- and asked WWIL to vacate the premises. WWIL’s petition for special leave to appeal filed with the Supreme Court of India had also been dismissed. The Company and WWIL had filed application to review the said order with the High Court and an Interim stay was granted on July 30, 2014 which required deposit of Rs.10,00,38,000/- by January 2015 against payment of arrears of rent for the year 2000-01 to 2013-14 and payment of Rs.45,00,000/- per annum from Financial Year 2014-15 till the settlement of the case, to MFSCDCL. As per the terms of the said Order, till financial year 2016-17, Rs. 11,35,38,000/- has been paid by the Company and for financial year 2017- 18 to 2019-20 Rs. 45,00,000/- per annum has been paid by WWIL. The State Govt. of Maharashtra and MFSCDCL challenged the order of the High Court in the Supreme Court which was dismissed by the

Head Office: 409/410 Abuwala House, Gundecha Industrial Complex, Next to Big Bazaar, Akurli Road, Kandivali (East), Mumbai — 400 101. Email: [email protected] Branch Offices: Abu Road, Jodhpur, Nashik, Bhopal & Hyderabad

Phone No.: 2887 8000 2887 0069 .

Uttam Abuwala Ghosh & Associates

Website: http://www.uttamabuwala.com Chartered Accountants

Supreme Court on September 22, 2014. The amount so paid / being paid by the Company have been

accounted under Non - Current Other Financial Assets in the Standalone Financial Statements to be

adjusted on the settlement of the case. Management of WWIL informs that these will be accounted as

an expense, if required, on the settlement of the case.

Additionally, without giving effect to the matter as stated above, WWIL's net worth stands fully eroded

as at June 30, 2020. Having regard to the circumstances explained above and pending final outcome of

the matter under litigation, the Company has not made any adjustment to the carrying value of

investment in and amounts due from WWIL and the deposit paid consequent to the High Court’s Orders.

Accordingly the impact on the carrying value of investments, recoverability of loans and advances and

consequential impact on loss for the year and reserves is not determinable.

5. Based on our review a nduced as above, except for the matters relating to the investment in and loans

and advances and interest recoverable from WWIL referred to in paragraph 4 above, the outcome and

consequent adjustment to the unaudited financial results of which cannot be presently determined,

nothing has come to our attention that causes us to believe that the accompanying statement of

unaudited financial results prepared in accordance with the recognition and measurement principles

laid down in aforesaid Indian Accounting Standards (Ind AS) specified under Section 133 of the

Companies Act, 2013 as amended, read with relevant rules issued thereunder and other recognized

accounting practices and policies has not disclosed the information required to be disclosed in terms of

Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 (as

amended), including the manner in which it is to be disclosed, or that it contains any material

misstatement.

6. Attention is drawn to the fact that the figures for the quarter ended March 31, 2020 as reported in

these financial results are the balancing figures between audited figures in respect of the full previous

financial year and the published year to date figures up to December 31, 2019 which were subject to

limited review.

For Uttam Abuwala Ghosh & Associates

Chartered Accountants

CA Prerak Agarwal

(Partner)

Membership No.: 158844

UDIN: 20158844AAAABI6094

Date: August 27, 2020

Place: Mumbai

Head Office: 409/410 Abuwala House, Gundecha Industrial Complex, Next to Big Bazaar,

Akurli Road, Kandivali (East), Mumbai — 400 101. Email: [email protected]

Branch Offices: Abu Road, Jodhpur, Nashik, Bhopal & Hyderabad

Phone No.: 2887 8000

2887 0069 Uttam Abuwala Ghosh & Associates Website: http://www.uttamabuwala.com Chartered Accountants

Independent Auditor Review Report on quarterly unaudited consolidated financial results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 015, as amended. 2015, as amended.

To The Board of Directors of Mukta Arts Limited

a,

4,

We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of Mukta Arts Limited (“the Parent”), and its subsidiaries (the Parent and its subsidiaries together referred to as “the Group”) and its share of net profit after tax and total comprehensive loss of its joint venture for the quarter ended June 30, 2020 (“the statement”), being submitted by the Parent pursuant to the requirement of Regulation 33 of SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015 as amended (‘the Regulations’).

Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" (Ind AS 34), prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India read with the Circular. Our responsibility is to express a conclusion on the Statement based on our review.

We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. A review of interim financial

us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the Securities and Exchange Board of India under Regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended, to the extent applicable.

* The statement includes the results of the following entities:

a. Parent Company i. Mukta Arts Limited

b. Subsidiaries: » i. Mukta A2 Cinemas Limited

ii. Whistling Woods International Limited

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Phone No.: 2887 8000

2887 0069


iii. Whistling Woods International Foundation (100% Subsidiary of Whistling Woods International Limited)

iv. Mukta A2 Multiplex SPC (incorporated in Bahrain)

v. Mukta Creative Ventures Limited

vi. Mukta Tele Media Limited

vii. Connect.1 Limited

and

c. Joint Venture:

i. Mukta VN Films Limited Py

3. As at June 30,2020 the company’s investment in its subsidiary (including deemed investment), Whistling woods International Limited (WWIL) a joint venture between the company and Maharashtra Film, Stage and Cultural Development Corporation Limited (MFSCDCL), aggregates to Rs. 19,95,11,218/- and loans and advances, deposits, interest receivable and rent receivable aggregate to Rs. 59,00,95,322/- recoverable from WWIL. As fully explained in Note 2 to the accompanying unaudited financial statements, the Order of February 9, 2012 passed by the High Court of judicature at Bombay (‘High Court’), had quashed the joint Venture Agreement (JVA’) between the company and Maharashtra Film Stage Cultural Development Corporation ( ‘MFSCDCL’). Maharashtra Film Stage and Cultural Development Corporation (‘MFSCDC’) raised net demand of Rs. 59,19,66,210/- and asked WWIL to vacate the premises. WWIL’s petition for special leave to appeal filed with the Supreme Court of India had also been dismissed. The Company and WWIL had filed application to review the said order with the High Court and an Interim stay was granted on July 30, 2014 which required deposit of Rs.10,00,38,000/- by January 2015 against payment of arrears of rent for the year 2000-01 to 2013-14 and payment of Rs.45,00,000/- per annum from Financial Year 2014-15 till the settlement of the case, to MFSCDCL. As per the terms of the said Order, till financial year 2016-17, Rs. 11,35,38,000/- has been paid by the Parent Company and for financial year 2017-18 to 2019-20 Rs. 45,00,000/- per annum has been paid by WWIL. The State Govt. of Maharashtra and MFSCDCL challenged the order of the High Court in the Supreme Court which was dismissed by the Supreme Court on September 22, 2014. The amount so paid / being paid by the Company have been accounted under Non - Current Other Financial Assets in the Standalone Financial Statements to be adjusted on the settlement of the case. Management of WWIL informs that these will be accounted as an expense, if required, on the settlement of the case.

# Additionally, without giving effect to the matter as stated above, WWIL's net worth stands fully eroded as at June 30, 2020. Having regard to the circumstances explained above and pending final outcome of the matter under litigation, the Company has not made any adjustment to the carrying value of investment in and amounts due from WWIL and the deposit paid consequent to the High Court’s Orders. Accordingly the impact on the carrying value of investments, recoverability of loans and advances and consequential impact on loss for the year and reserves is not determinable.


Phone No.: 2887 8000

2887 0069


6. The Ministry of Corporate Affairs (MCA) om March 30, 2019 notified Ind AS 116 “Leases” as part of Companies (Indian Accounting Standards) Amendment Rules, 2019. The New standard is effective from reporting period beginning on or after April 1, 2019. Pending final outcome of the matter under litigation as mentioned in. paragraph above, no adjustments has been made in the financial information with respect to Ind AS 116 on Iand rights.

7. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of other auditors referred to in paragraph, 9 below and | management certified accounts referred to in paragraph 10 below, except for the matters relating to the investment in and loans and advances and interest recoverable from WWIL referred to in paragraph 5 above and for matter relating to Ind AS 116 “Leases” referred to in paragraph 6 above, the outcome and consequent adjustment to fhe unaudited financial results of which cannot be presently determined, nothing has come to our attention that causes us to believe that the accompanying statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

8. We draw your attention to following matters

a) As described in financial statement, the group has considered the effect of uncertainties due to Covid-19 pandemic on the operations of the group. However, the actual impact may be significantly different than estimated as it is not possible to completely evaluate and quantify the impact of Covid-19 on the future operations of the group. ,

b) As described in financial Statement, Mukta A2 Cinema Limited (Subsidiary) has invoked the Force Majeure clause under various lease arrangements for its premises and informed the landlords that no rent would accrue for the period impacted by Covid-19 pandemic. The amount of reduction in lease liability which is yet to be confirmed in writing for the quarter ended June 30, 2020 is Rs.206.25 lakhs has been recognized as concessional lease income.

c) During the quarter ended June 30 ,2020, Mukta A2 Cinema Limited (Subsidiary) has incurred loss before tax (including other comprehensive income) of Rs. 436.08 lakhs and-has accumulated losses of Rs. 2,548.16 lakhs as on June 30, 2020. Further the company’s net, worth fias been fully eroded and there is a deficit of Rs. 2398.15 lakhs in the shareholder’s equity as on June 30, 2020. These conditions indicate the existence of a material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern. However, the company’s unaudited financial results have been prepared on a going concern basis on the reporting date.

d) There is an emphasis of matter with regards to the financial statements of Mukta A2 Multiplex S.P.C. (Subsidiary) on account of deficit in the Shareholder’s Equity and the company’s current liability exceeding its current assets as on June 30, 2020. These conditions indicate the existence of material

x


Phone No.: 2887 8000

2887 0069 Uttam Abuwala Ghosh & Associates Website: http://www.uttamabuwala.com Chartered Accountants

9.

10.

uncertainty which may cast significant doubt about the Company’s ability to continue as a going concern.

Our conclusion on the Statement is not modified in respect of the above matters.

We did not review the interim financial results of Three subsidiaries included in the consolidated unaudited financial results, whose interim financial results reflect total revenues of Rs. 13,84,54,011/-, total net profit after tax and total comprehensive profit of Rs. 1,22,81,774/- for the quarter ended June 30, 2020 as considered in the consolidated unaudited financial results. These interim financial results have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiariegy is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.


The consolidated unaudited financial results includes the interim financial results of Three subsidiaries which have not been reviewed by their auditors, whose interim financial results reflect total revenue of Rs. 5,89,295/-, total net loss after tax of and total comprehensive loss of Rs. 2,93,966/- for the quarter ended June 30, 2020, respectively. The consolidated unaudited financial results also includes the Group’s share of net loss after tax of and total comprehensive loss of Rs 13,09,405/- for the quarter ended June 30, 2020 respectively, as considered in the consolidated unaudited financial results, in respect of one joint ventures, based on their interim financial results which have not been reviewed by their auditors. According to the information and explanations given to us.


For Uttam Abuwala Ghosh & Associates Chartered Accountants

Firm No. 111184W

CA. Prerak Agarwal

(Partner)

Membership No.: 158844 - UDIN: 20158844AAAABJ8721

Date: August 27, 2020

Place: Mumbai


27 august, 2020 · 2020. 8. 27. · 27" august, 2020 bse limited national stock exchange of...

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