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)
= 44d aie dee ee
.
. .
" .
. _.
oa .
. .
a.
ee
ee
eee
ee
ee
1 that
Steet
4 ed
ee
ee
ee
ee
ee
whe dee
1,036.53 -
448.00 -
2,160.81
1,825.28
4, 570.59
4,056.34
17,168.89
295.81
| 271
.07
| 1,097.62 .
339.80
222 50
183. 43
0 857.47
8 re i
been
a
a
oe
ee
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oon
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a
. .
eee
. -
ee
ee
eee
a
deeede
ne hee
eee
ee
ee eee
eee
oe ee
ee ee
1 Revenue
from
operations
2 Other
Income
3 Tota
l Revenue
Free
eee ee
ee le eee
735. 38°
4,793. 4
9 4,239.77
18,026.36.
a
Weot
eaee
eee
tone
1. Cen
ne ee
wee
ee cement added
nee
.b) ) Purchase o
f food
and
boversoe
tie nent
tan bo
ut
- 0.5
5 “129.10” ad
e es
eee a,
See eee
(19.11)
re
ee
bee
et ee ee
ee
ee
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seul
we
e am
es
a.
“
alat
a eteialahieeet te
nets
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ee
oa oe
" eet
a ee ed
_¢)
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ribu
tor
and
producer's s
hare
dd) Other
dire
ct operation
expe
nses
_@)
Employee be
nefi
is expense
4) Amortisation
of intangible assets
(including fi
films
rights)
g) Depreciation
of tangible as
sets
_h)
Finance
costs
i) Other
expenses
sz
ee
139.70 |
90.59 |
353.
85
138.41
55.00
158.06
232.74
938.
06
52
04 |
143.16 |
246.00
372.59
997.15
231.
87 —
68
9.29
954.
66
2,80
5.36
0.10
581.
42
32.78:
453.
37.
314.
10
705.74
2,135.12
3.77
"1,180.79.
38.75 |
731.13
| 7.90
~ 271.60 -
274.08 -
4,980.07 -
4,619. 62.
fe
es
"746
.91
29.57
878.210
24. 50
| eee
ese
501.29
392.87
2,083.67
_ 4,786.81
See
ete
ee ee ee
-—---—--—— —--
ee
ere
eee
3,76
4.77
22
0.87
~ 3,2
98.0
3
~ 4,849.78
| 1,
564.
34
7,507.58
18,807
.77
Tota
l ex
pend
itur
e 378.81
584.
35
5 Pr
ofit
/ (loss) before
tax (3-4)
oo 2
B8BS
T 99
4-28
|
1842
498.07
29.9
6 173: 8
7 AOA).
(781
.41)
‘Current t
ax |
| 48.00
26.0
0 :
26.0
0 18.04:
286. 00"
18.45
4.15
Pee
eo mm
ee
ey
--—-- a
ee ee a
‘Deferred
tax’
a,
| Oo
| -
: -
| 7 oe
sao
: 16
| -
(12. 33)
| |
(90.23)
©. 65
)"
gg 33°
6s
71)"
74
G8
7
Prof
it/ (l
oss) fro
m ordinary a
ctiv
itie
s af
ter
tax
364.
02
147.
05
© 51
7.30
|
12.5
7 |
126.54
0 506. 4
8)
(836
.64)
3
Extraordinary
| ite
ms
ee
bone ee
9 Sh
are of
profit(loss)
in Joi
nt ven
tures
o —
_—e r
8.09)
BO
ta.
97)°
(11
.99)
10
Net
prof
i it
/(lo
ss)
for
the
period
— 36
4.02
-
— 147,
05
| 9147.30
(0.53)
134.
145 a
(521
45
)"
oo
(848
.63)
11°
Other
Comprehensive
Income
(net
of tax)
_ |
. (13.80).
(43.80)
(6.87)
a7.
8 2),
“(38.
98)
senna
Tota
l Comprehensive Income for
the
period (transferred
to BS-_
es
Foc s
eatancnas ac
e ban
n
12 Ot
her
Equi
ty)
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ee
mem me
328.
aT
a
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. wee emer
oy
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.
sam
(580.43),
4805.28)
364.02
133.25
503.50
(7.40) 1
em
eee
ee ee
ee
13 Basic
and d
iluted
earn
ing p
er sha
re (EP
S) (no
t ann
ualise
d) A
a6
oo
181
0.59
2.2
3 |
0.03) 081
(248)
(4.0
1)
Part
tl
- |
| |
3 ,
: A Part
icul
ars
of shareholdings
- | oe
~
- ;
| —
. -
| |
Sn
ree
2
t “Public
shareholding
- cent
dunes |
co |
oo cas
sare
vn aun
aveune
anasee
e a
a) Number
of shares
66,
97 97 0
66,
91.9
4 0:
66,91 910.
66,9
1 S970
_—
b) Percentage ¢
of s
hare
hold
ing
_ 29.
63%
| 29 63%
29. 63%
29.63%:
2
Promoter
and promoter group
shareholding
— ee
ee ,
2 :
3
ae ea
«66.
01 91
0
29.
63%
_ ee
a
a
-66,
91,9
10
BB
29. 63%
| 29.63%
—— em
we eee
ee sr
a
a a. Ss
66,91 O10”
ae ee
er
ee
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wi
et
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ee
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ee
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be
ee
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eet
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Lae
-~
ii) % o
f sha
res (
as 2% o
fthe
total
shareh
olding
of
= Se
: :
_lii)
% of shares (a
s a %
of
the totalshare
capitalof
a Se
Pee
deed
eee ee
ee ee
ee
sof
oe -
ee
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- =
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. .
: qoee
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ae Newb
te eee
eR
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.-
a
oo
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ee
me
nt
bem
eet
om
. +
oo
. ee
ee
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ee
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ee
ee
_:b)
None
ncum
bere
d |
ce ecteetnte
a
| be
ee
i) Number o
f sh
ares
1,58,93,290
_1,58,93,290
—
1,58,93,
290
-1,58,93,290
1,98
,95,
290
ji) %
of shares (
as a%
ofthe t
otal s
hare
hold
ing
of re eet
pe promoter
and pr
omot
er g
roup)
_ 400%
100%
10
0% =
100%)
= 100%
100%
100%
100%
—- — 4,58,93,290_
Ft aa
es.
eee ee ee
“4.8893.900
1.58.93, 2
90.
eee
ee
eee ee
eee
ee ee
eee
il) %
of
shar
es (
as a% o
f the
total
shar
e cap
ital
of -
. re
the
Comp
any)
70
.37%
: 70
.37%
70
.37%
70.37%
70.37%
70 37%
cI
nves
tor
complaints
— —
: :
: :
: seven
rege
soe
te
“Pending a
t the b
egin
ning
oft
he q
uart
er
NI
| cc
denn
e |
| :
| ~ Revewved
dunn
g he q
uater
co
NI
oo .
; ‘Disposed
off
during the quarter”
: :
: Remaining
unresolved
at th
e end
of
the
quarter
. . -
-
: ”
: "
. Ni
l a
7 , ~
: Ce
, ce
~
ci cee
ee
| .
| a
oc c
ecee
eet
cueeee
eceven
eente
trite
tren
-
sooo
. .
. cope
ot see
so sores
.
. rr
tema
remy
Mr
om
. .
. '
oot
or "ake
“T
ee eee
eons
. -
* ebbrre
ree .
De
ie eet
ee
ee eh
oe
saaee
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oe
ee
ones
comes
=
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- ==
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. .
7 -
oo.
sone
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ee
ee em
ee
ee
mee
ne
sao
. a)
.
watt
owe
em
me me
ee
w---
. '
' :
Segm
ent
- wis
e Re
venue, R
esults,
Asse
ts a
nd Lia
biliti
es "ie
Ja la
khs)
S.No
{Par
ticu
lars
Standalone
Consolidated
3 Months Ended
12 Months ended
3 Months Ended
12 Months ended
30 June 2020
30 Ju
ne 20
19
31 March
27020
31 March
2020
30 Ju
ne 20
20
30 Ju
ne 20
19
31 March 2020
31 March 2020
(Unaudited)
{Unaudited}
(Unesudited}
(Audited)
(Unaudited)
(U
naua
gite
d)
(Unaudited)
(Audited)
1 | SEGMENT REVENUE
Software division
Thea
tric
al exhibition division
Education
| Ot
hers
To
tal
Less:
Inter segment re
venue
>
Net
sales/
in
come
fr
om
operat
ion
2| SEGMENT RESULTS
Prof
it/
(loss) bef
ore
tax
and
finance
costs
from
each Segment
| Soft
ware di
visi
on
- Equi
pment
¢ division
_ / Th
eatr
ical
exh
ibit
ion
division
Education
Othe
rs
Tota
l
Finance co
sts
|
Othe
r un
- -alloca
ble
expenditure
Net
of una
lloc
able
i in
come
| To
tal
profi
if before
tax
oo
Add :
Shar
e of
profit/(loss)
in Joint
ventures
Tota
l profit it
before ta
x and
after
share
in J
oint ve
ntur
e
Less
:
3} SEGMENT ASSETS |
| Software
division
Equipment div
isio
n _
a Theatrical ex
hibi
tion
« d
ivision
|
Educ
atio
n |
Othe
rs
Unal
loca
ble-
-
4; SE
GMEN
T LI
ABIL
ITIE
S | So
ftwa
re di
visi
on.
-
Equipment di
visi
on
| -
heatrical
exhi
biti
on division oe
+ eee
Education
Others
‘Unallocable _
Equipment
divi
sion
(in
clud
ing
othe
r income) =
i” 32
9.16
|
_
177.
35
906.51
506.51
227.13
(7.45)
135.
29
354.
97
139.70
(141.3
1)
356.58
356.58
2,528.26
127.06
| 94
4. 23
2,154.
78 17,492.6
5 _
276.63.
1.32
875.87
546.62
_ 7,113.58
773. 440
489 |
—_
258.54
1,036.54
1,036.54
0
282.54
(4. 17
).
181: 9
2 460.;
29
1 58.
06 |
(92.
05).
394.
28 |
204.
38 a
bee
455. 76°
ee ee ee ee,
540.
14
= dee
| a
225.
85 |
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ee
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434. 73
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(22252.
875. 87
610.
08
6,33
1. 4
7 |
bk eee»
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ee
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ws
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oe
ee
-—_—-—--—-
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-—
_ 54
6. 57
773.
03
|
773.
03
|
58.6
8 |
(22.95)
346. 62.
382.
34
_
i
3.16
134.73
qeateg
130.46
610. 28
a
876.08
647.82
1,168.87
_
15.16
1,30
1.81
2,
485.
84
|
2,485.84
200. 58
(36. 35).
1,01
0.23
689.29
(132
.13)
45
3.07
453.
07
430.
46
610.
28
2. 382 oy
16,
867. 83 |
105. 30.
876. 0
8
547. 8
2
5, 953. 58
365.23)
365.23
329.
16
-
276.
79
1,359.16
4177.35
2,142.46
2,142.46
227. 13.
(7.45)
(448.08)
351.30
135.29
258.19
314.
10
(85.
87)
29.96
(13.09)
16.86 ©
127.06
a
976.42
4,837.27
2,154.78
2,89
3.74
4.32
oh
006.87
_ ‘5
,975
.97
546.62
8,470.35
|
2,528.26
276.63
773.41
4.89
, - -
2 459. 29
1,210.37
258.54
4,706.20
4,706.20
282. 54
.
(4. 17).
(87.95)
42.48
181.92:
414.82
0
274.08
(33.13)
1/3.87
|
7.60
181.47
259427
1,9
155.76
| 7 34
4. 73
4,870.25.
2,147.08
0.23
4.777.98
3,951.88
610.06
9,223.25
230.12 |
1,484.80.
4,501.03
4,501.
03
62.
86
(22.95)
(668.85) |
293.07 |
346.
53
| 10
. 66
Cl
164.
82
|
(547.
04)
(74.
97)
690.
41
40,039.33 -
4908
.51 |
Ce ee ee
a
105,
30
6,68
7.16
_ 4,169.45 |
547.
82
_—_—-— —-
41 60
7. 70.
2 0.60
2,238.94
392.87
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me ta ee
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1,173.13
“9 9
93.88.
eee eee
a
ee
5,578.46
wae ee
er eee
ee
ae
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546. 57.
potbeeterer
eee
1,301.81
a ene
rane _--—
be
18,062.44
ee
ee
18,062.44
204.84
(36.
35)
~ (927.15)
796.
32.
~ 846.02
Oe re
ee
el ee ee
ee
883.67.
_ 1,564.34,
0074
____
(781
.41)
__
411.99)
493.07 |
—
--—
-.
+ ee. ee
1,941.69
130.46
— 10.
039. 33°
ae
ee rs
voravtenninnt a
rae
4. 9
08.51
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.97
4,947.28
365.
23
:
a ee el
-+-
Ss
2,382.97
ee ee
ee eee
4,947.28
eer
se ee
-—-0
ee
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oe 365.23.
~ 105.30.
es
6,687. 16
ale
nel
ee
ee
4,169.45.
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a
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ee eee
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
x
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
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.
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
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
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
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.
Our conclusion on the Statement is not modified in respect of the above matters.
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.
Our conclusion on the Statement is not modified in respect of the above matters.
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
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