Mukta Arts Ltd. — Annual Report 2021

May 25, 2021

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May 25, 2021

BSE Limited Phiroze Jeejeebhoy Towers, 1st Floor, Dalal Street, Mumbai – 400 001	National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051

Ref:- Name of Scrip/Scrip Code: BSE: 532357

NSE: MUKTA ARTS –EQ

Kind Attn: Corporate Relations Department

Dear Sirs,

Sub: Outcome of the Board Meeting and Results for quarter and year ended 31st March, 2021

Further to our letter dated May 15, 2021, 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., May 25, 2021 via through video conferencing (VC) and have considered and approved the following:

1. Financial Results - The Audited Standalone and Consolidated Financial Results along with segment wise results of the Company for the year ended March 31, 2021 in pursuance to SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

2. Annual General Meeting – 39th Annual General Meeting will be held through Video Conference (VC) / Other Audio-Visual Means (OAVM) on Thursday, 23rd day of September 2021.

3. Book Closure - The Register of Members and Share Transfer Books of the Company will remain closed from Friday, 17[th] September, 2021 to Friday, 24[th] September, 2021 (both days inclusive) for the purpose of ensuing Annual General Meeting.

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Pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith the following:

1. Audited Standalone and Consolidated Financial Results for the quarter and year ended March 31, 2021 along with segment wise results and cash flow statement;

2. Independent Auditor's Report on the Audited Standalone and Consolidated Financial Results for the quarter and year ended March 31, 2021;

3. Statement on Impact of Audit Qualifications on Standalone and Consolidated results for the year ended March 31, 2021;

4. A press release for the quarter ended March 31, 2021.

The meeting of the Board of Directors of the Company commenced at 12.00 pm and concluded at 3.30 pm.

You are requested to take the same on record.

Thanking you,

Yours Faithfully,

For and on behalf of

Mukta Arts Limited

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Monika Shah Company Secretary and Compliance Officer Encl: As above.

	MUKTA ARTS LIMITED
	CIN:L92110MH1982PLC028180
	Regd. Office: Mukta House, Behind Whistling Woods Institute, Film City Complex, Gor		egaon(E), Mumbai-400 065
	Part 1 - Statement of Audited Consolidated Financial Results for theQuarter and Year		ended 31 March 2021
							(Rs in lakhs,exceptper share data)
	S.No	Particulars	Standalone					Consolidated
			3 Months Ended			12 Months Ended		3 Months Ended			12 Months Ended
			March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
			(Audited)	(Unaudited)	(Audited)	(Audited)	(Audited)	(Audited)	(Unaudited)	(Audited)	(Audited)	(Audited)
	1	Revenue from operations	226.66	848.23	448.00	1,863.11	2,160.81	1,699.71	2,304.98	4,056.34	7,288.53	17,168.89
	2	Other Income	321.30	306.48	271.07	1,117.67	1,097.62	434.79	361.76	183.43	1,480.21	857.47
	3	Total Revenue	547.96	1,154.71	719.07	2,980.78	3,258.43	2,134.50	2,666.74	4,239.77	8,768.73	18,026.36
	4	Expenses
		a) (Increase)/decrease in stock in trade	-	-	-	-	-	(5.58)	(9.12)	0.69	32.13	(19.11)
		b)Purchase of food and beverage	-	-	-	-	-	34.90	8.35	129.10	64.70	554.96
		c)Distributor andproducer's share	-	-	-	-	-	176.92	245.65	746.91	440.15	3,764.77
		d)Other direct operation expenses	30.72	225.13	-	255.85	372.59	13.69	27.65	29.57	59.71	220.87
		e)Employee benefits expense	115.43	77.80	143.15	366.24	557.15	557.13	467.05	878.21	2,108.42	3,298.03
		f)Amortisation of intangible assets(includingfilms rights)	-	-	-	-	-	40.70	29.18	24.50	132.98	66.55
		g)Depreciation of tangible assets	45.40	45.69	52.04	204.09	231.67	430.70	445.85	501.29	1,786.51	1,849.78
		h)Finance costs	154.46	152.02	143.16	584.58	689.29	339.32	414.29	392.87	1,368.34	1,564.34
		i)Other expenses	250.09	145.26	246.00	665.08	954.66	1,338.14	850.94	2,083.67	3,855.63	7,507.58
		Total expenditure	596.10	645.90	584.35	2,075.84	2,805.36	2,925.92	2,479.84	4,786.81	9,848.57	18,807.77
	5	Profit/ (loss) before tax(3-4)	(48.14)	508.81	134.72	904.94	453.07	(791.41)	186.90	(547.04)	(1,079.83)	(781.41)
	6	Tax Expenses
		Current tax	43.50	65.00	-	130.00	26.00	43.54	65.04	15.15	130.17	41.15
		Deferred tax	29.26	(11.18)	(12.33)	27.23	(90.23)	(47.97)	(18.05)	(55.71)	(77.08)	14.08
	7	Profit/ (loss) from ordinary activities after tax	(120.90)	454.99	147.05	747.71	517.30	(786.98)	139.91	(506.48)	(1,132.92)	(836.64)
	8	ExtraordinaryItems	49.63	-	-	49.63	-	49.63	-	-	49.63	-
	9	Share ofprofit/(loss)in Joint ventures	-	-	-	-	-	(17.49)	(3.19)	(14.97)	(47.61)	(11.99)
	10	Netprofit/(loss) for theperiod	(170.52)	454.99	147.05	698.08	517.30	(754.85)	136.72	(521.45)	(1,230.16)	(848.63)
	11	Other Comprehensive Income(net of tax)	6.23	-	(13.80)	6.23	(13.80)	16.14	(6.87)	(38.98)	(4.48)	(56.65)
	12	Total Comprehensive Income for theperiod(transferred to BS- Other Eq	(164.29)	454.99	133.25	704.31	503.50	(738.71)	129.85	(560.43)	(1,234.64)	(905.28)
	13	Basic and diluted earning per share(EPS) (not annualised)	(0.73)	2.01	0.59	3.12	2.23	(3.27)	0.58	(2.48)	(5.47)	(4.01)
		Part II
	A	Particulars of shareholdings
	1	Public shareholding
		a)Number of shares	6,691,910	6,691,910	6,691,910	6,691,910	6,691,910	6,691,910	6,691,910	6,691,910	6,691,910	6,691,910
		b)Percentage of shareholding	29.63%	29.63%	29.63%	29.63%	29.63%	29.63%	29.63%	29.63%	29.63%	29.63%
	2	Promoter andpromotergroupshareholding
		a)Pledge/encumbered
		i)Number of shares	-	-	-	-	-	-	-	-	-	-
		ii) %of shares(as a%of the total shareholdingof	-	-	-	-	-	-	-	-	-	-
		promoter andpromotergroup)
		iii) %of shares(as a%of the total share capital of	-	-	-	-	-	-	-	-	-	-
		the Company)
		b)Non encumbered
		i)Number of shares	15,893,290	15,893,290	15,893,290	15,893,290	15,893,290	15,893,290	15,893,290	15,893,290	15,893,290	15,893,290
		ii) %of shares(as a%of the total shareholdingof
		promoter andpromotergroup)	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%
		iii) %of shares(as a%of the total share capital of
		the Company)	70.37%	70.37%	70.37%	70.37%	70.37%	70.37%	70.37%	70.37%	70.37%	70.37%
	B	Investor complaints
		Particulars
		Pending at the beginning of the quarter				Nil
		Received duringthequarter				Nil
		Disposed off duringthequarter				Nil
		Remainingunresolved at the end of thequarter				Nil
	Page 1

Digitally signed by RAHU RAHUL PURI Date: L PURI 2021.05.25 15:40:21 +05'30'

	Segment - wise Revenue, Results, Assets and Liabilities
											(Rs in lakhs)
S.No	Particulars	Standalone					Consolidated
		3 Months Ended			12 Months Ended		3 Months Ended			12 Months Ended
		March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
		(Audited)	(Unaudited)	(Audited)	(Audited)	(Audited)	(Audited)	(Unaudited)	(Audited)	(Audited)	(Audited)
1	SEGMENT REVENUE
	Software division	29.10	692.50	225.85	1,122.20	1,168.87	29.10	246.40	230.12	1,122.20	1,173.13
	Equipment division(includingother income)	8.89	0.20	0.60	11.19	15.16	8.89	(4.39)	0.60	11.19	15.16
	Theatrical exhibition division	-	-	-	-	-	673.55	269.97	2,238.94	1,588.65	9,993.88
	Education	-	-	-	-	-	1,140.34	1,459.53	1,484.80	5,069.95	5,578.46
	Others	443.61	155.54	546.57	984.66	1,301.81	443.61	31.27	546.57	984.66	1,301.81
	Total	481.59	848.24	773.03	2,118.05	2,485.84	2,295.48	2,002.79	4,501.03	8,776.65	18,062.44
	Less: Inter segment revenue	-	-	-	-	-	-	-	-	-	-
	Net sales/Income from operation	481.59	848.24	773.03	2,118.05	2,485.84	2,295.48	2,002.79	4,501.03	8,776.65	18,062.44
2	SEGMENT RESULTS
	Profit/ (loss)before tax and finance costs
	from each Segment
	Software division	(65.90)	376.53	58.68	517.78	200.58	(65.90)	383.40	62.86	517.78	204.84
	Equipment division	(10.38)	(5.67)	(22.95)	(26.62)	(36.35)	(10.38)	(4.68)	(22.95)	(26.62)	(36.35)
	Theatrical exhibition division	-	-	-	-	-	(522.54)	(421.28)	(668.85)	(1,857.44)	(927.15)
	Education	-	-	-	-	-	19.69	411.94	293.07	872.99	796.32
	Others	225.12	82.82	346.62	576.79	846.02	225.12	14.99	346.53	576.79	846.02
	Total	148.84	453.68	382.34	1,067.94	1,010.23	(354.01)	384.36	10.66	83.50	883.67
	Less: Finance costs	154.46	152.01	143.16	584.58	689.29	339.32	414.29	392.87	1,368.34	1,564.34
	Other un-allocable expenditure						-		-
	Net of unallocable income	42.52	(207.15)	104.45	(421.57)	(132.13)	98.08	(216.82)	164.82	(205.01)	100.74
	Totalprofit before tax	(48.14)	508.82	134.73	904.93	453.07	(791.41)	186.89	(547.04)	(1,079.83)	(781.41)
	Add : Share ofprofit/(loss)in Joint ventures	-	-	-	-	-	(17.49)	(3.19)	(14.97)	(47.61)	(11.99)
	Totalprofit before tax and after share in Joint venture	(48.14)	508.82	134.73	904.93	453.07	(808.91)	190.08	690.41	(1,127.44)	453.07
**3 **	SEGMENT ASSETS
	Software division	1,901.09	2,760.17	1,941.69	1,901.09	1,941.69	1,901.09	2,760.17	1,941.69	1,901.09	1,941.69
	Equipment division	114.95	136.94	130.46	114.95	130.46	114.95	136.94	130.46	114.95	130.46
	Theatrical exhibition division	612.28	373.09	610.28	612.28	610.28	8,865.37	8,968.65	10,039.33	8,865.37	10,039.33
	Education	-	-	-	-	-	5,517.92	4,908.59	4,908.51	5,517.92	4,908.51
	Others	3,080.82	2,179.18	2,382.97	3,080.82	2,382.97	3,080.82	2,179.18	2,382.97	3,080.82	2,382.97
	Unallocable	19,414.56	19,735.55	16,867.83	19,414.56	16,867.83	4,897.69	5,607.74	4,947.28	4,897.69	4,947.28
**4 **	SEGMENT LIABILITIES
	Software division	2,912.67	1,561.34	365.23	2,912.67	365.23	2,912.67	1,857.68	365.23	2,912.67	365.23
	Equipment division	5.51	0.78	105.30	5.51	105.30	5.51	0.78	105.30	5.51	105.30
	Theatrical exhibition division	776.78	875.87	876.08	776.78	876.08	2,826.85	4,592.77	6,687.16	2,826.85	6,687.16
	Education	-	-	-	-	-	3,881.31	3,578.72	4,169.45	3,881.31	4,169.45
	Others	494.33	904.08	547.82	494.33	547.82	494.33	904.08	547.82	494.33	547.82
	Unallocable ~~RAHU~~ ~~Digitally signed~~	6,144.70	6,889.04	5,953.58	6,144.70	5,953.58	14,571.46	13,066.94	11,607.70	14,571.46	11,607.70
	~~by RAHUL PURI~~
	~~L PURI~~ ~~Date: 2021.05.25~~
~~15:40:48 +05'30'~~

	NOTES:
1	The above financial results have been reviewed by the audit committee and approved by the Board of Directors at the meeting held on 25 May 2021.
2	In terms of order dated 9.02.2012 passed by the High Court of Judicature at Bombay (‘High Court’), Maharashtra Film Stage and Cultural Development Corporation (‘MFSCDC’) raised net demand of Rs. 591,966,210 and asked Whistling Woods International Limited (WWIL) to vacate the premises. The Company's and WWIL’s Review Petitions were heard by High Court and a stay was granted on 30 July 2014. However, the High Court ordered the Company/WWIL to pay Rs 100,038,000 by January 2015 against arrears of rent for the years 2000-01 to 2013-14 and Rs 4,500,000 per annum from the financial year 2014-15. As per the terms of the said Order, till 31 December 2020 Rs 113,538,000 has been paid by the Company and Rs 13,500,000 has been paid by WWIL. The State Government of Maharashtra and MFSCDC challenged the Order of the High Court in the Supreme Court which was dismissed by the court on 22 September 2014 with recourse to the State Government of Maharashtra to make an application to Bombay High Court. The Maharashtra State Cabinet has on 25 September 2018 approved allotment of 5.5 acres of land on lease basis to the Company. However the matter is sub-juidice and is subject to final disposal by the Honorable Bombay High Court. The auditors continue to modify their report on the said matter.
3	The business of the Mukta Group has been affected by the ongoing CoVID-19 pandemic. During the time the lockdown is in effect and social distancing norms are in place, the Entertainment Industry shall be adversely impacted. The Mukta Group has assessed the impact on its operations including revenue and the carrying value of its assets. For all the Group Companies, wherever applicable, steps have been taken to mitigate future losses by cutting operational costs, including by reduction of employee costs and by invoking force majeure for rental payments. For assessing future impacts, all available information has been disseminated. While the impact that is possible to assess till the date of approval of these accounts has been considered, the Group is continuously monitoring the situation as it evolves. The short term impact is expected to be severe; however, the long term impact is not expected to be substantial.
4	Figures for the corresponding quarter of the previous year have been regrouped / rearranged to conform to current quarter’s presentation.
				For and on behalf of the Board of directors
				~~RAHU~~	~~L~~ Digitally sign	ed
					~~by RAHUL P~~ ~~Date: 20210~~	~~RI~~ ~~525~~
				~~PURI~~	~~.~~ 15:41:01 +05	~~.~~ '30'
Date	: 25 May 2021				Rahul Puri
Place	: Mumbai			Managing Director
				DIN:01925045

MUKTA ARTS LIMITED	MUKTA ARTS LIMITED	MUKTA ARTS LIMITED	MUKTA ARTS LIMITED	MUKTA ARTS LIMITED
Statement of assets and liabilities as at 31 March 2021
						(Rs in lacs)
Particulars		Standalone			Consolidated
		As at	As at		As at	As at
		31 March 2021	31 March 2020		31 March 2021	31 March 2020
		(Audited)	(Audited)		(Audited)	(Audited)
ASSETS
Non-current assets
Property, plant and equipment		1,351.85	1,506.63		6,654.39	7,687.52
Right-of-use assets		89.71	103.40		2,352.65	3,125.46
Capital work-in-progress		12.87	12.87		460.71	373.69
Investmentproperty		1,371.28	1,406.79		1,396.88	1,434.72
Other Intangible assets		518.25	444.87		962.75	969.85
Intangible Assets under Development		466.52	589.64		823.48	858.14
Financial assets						-
Investments		2,678.28	2,678.28		358.72	394.33
Loans		3,744.06	3,494.06		-	-
Others		3,744.73	3,576.75		2,231.90	2,171.76
Deferred income tax assets(net)		267.09	294.32		267.09	190.01
Other non-current assets		1,148.17	1,174.11		1,318.39	1,364.06
Current assets
Inventories		-	-		75.87	116.07
Financial assets
Trade receivables		1,918.74	1,133.38		2,073.91	1,583.46
Cash and cash equivalents		575.29	170.08		1,401.42	321.32
Bank balances other than above		479.27	461.54		479.27	461.54
Loans		5,662.56	3,799.24		1,263.69	1,213.45
Others		692.60	700.87		821.64	853.53
Other Current assets		402.43	386.39		1,435.08	1,421.32
Total Assets		25,123.70	21,933.22		24,377.84	24,540.23
EQUITY AND LIABILITIES
Equity
EquityShare capital		1,129.26	1,129.26		1,129.26	1,129.26
Other Equity		13,660.44	12,956.12		(1,443.55)	(261.69)
MinorityInterest		-	-		408.37	391.63
Non-current liabilities
Financial liablities
Borrowings		4,669.49	4,627.05		5,591.40	6,195.17
Other financial liabilities		393.89	426.98		3,790.53	4,180.61
Provisions		135.42	126.81		514.83	495.11
Other non-current liabilities		449.01	503.00		206.03	241.60
Current liabilities
Financial liablities
Borrowings		700.00	820.00		1,134.89	1,335.27
Tradepayables		177.10	258.98		2,834.31	3,412.54
Other financial liabilities		622.64	591.63		3,556.65	3,046.81
Other current liabilities		2,755.24	225.88		5,650.86	3,324.14
Provisions		431.21	267.51		1,004.26	1,049.78
Total Equity and Liabilities		25,123.70	21,933.22		24,377.84	24,540.23

RAHU Digitally signed by RAHUL PURI Date: L PURI 2021.05.25 15:41:18 +05'30'

Mukta Arts Limited Cash Flow Statement for the year ended 31 March 2021
Particluars	Standalone		Consolidated
	31/Mar/2021	31/Mar/2020	31/Mar/2021	31/Mar/2020
Cash flow from operating activities Profit before tax 90,494,113 45,307,971 (107,983,425) (78,140,947) Non-cash adjustments to reconcile Profit before tax to net cash flows Depreciation and amortisation 20,408,788 23,166,660 191,948,801 191,633,192 Bad debts/ advances/ intangible assets under development written-o 1,771,787 4,797,952 6,172,789 40,658,605 Finance costs 58,457,876 68,929,077 136,833,862 156,434,251 Interest income (81,268,647) (72,482,976) (9,071,098) (8,497,691) (Gain) on sale of tangible assets (net) (3,020,961) (546,736) (4,526,965) (546,736) Operating profit before working capital changes 177,337,069 114,479,918 213,373,965301,540,674 Movements in working capital: Increase/(Decrease) in other current liabilities 202,936,180 820,329 (4,552,022) 23,306,865 Increase/(Decrease) in other financial liabilities 3,101,217 20,429,239 11,976,190 420,619,025 Increase/(Decrease) in other non current liabilities (4,538,666) 32,867,479 (3,557,285) 54,056 Increase/(Decrease) in trade payables (8,188,330) 3,287,459 57,823,045 37,704,837 Increase/(Decrease) in current provisions 16,370,239 (16,994,574) 120,338,773 24,077,955 (Increase)/Decrease in inventories - - 4,020,105(1,422,481) (Increase)/Decrease in trade receivables (78,535,845) 16,373,235 (49,045,327) 56,662,806 (Increase) /Decrease in other non- current assets (22,405,766) (15,955,169) 4,567,040 5,490,239 (Increase)/Decrease in short-term loans and advances (236,331,910) (51,556,027) (5,024,144) (3,914,247) (Increase)/Decrease in other financial assets 16,797,362 (18,206,471) (6,014,716) (22,971,633) (Increase) /Decrease in other current assets 15,193,543 (15,624,285) (1,376,105) (38,957,493) (Increase)/Decrease in other current financial assets 826,607 749,292 3,189,099 (14,062,152) Cash generated from (used in) operations 82,561,700 70,670,426 345,718,617661,128,452 Taxes paid (net) (31,858,473) (39,151,205) (15,467,558) (8,998,545) Net cash generated from (used in) operating activities (A) 50,703,227 31,519,221 330,251,059652,129,907 Cash flow from investing activities Investments in equity shares of subsidiaries - - (3,561,673) (73,221) Purchase of fixed assets (tangible and intangible) (24,019,944) (26,168,895) (11,225,145) (529,490,084) Proceeds from maturity/ (reinvestment) of fixed deposits, net (1,415,164) (24,759,202) (1,415,164) (24,759,202) Proceeds from sale of fixed assets 7,851 1,826,146 1,949,146 1,949,146 Interest income 81,268,647 72,482,976 9,071,098 7,890,633 Net cash used in investing activities (B) 55,841,390 23,381,025 (5,181,738) (544,482,728) Cash flow from financing activities Secured loan (repaid)/taken,net 4,244,306 24,126,316 (25,376,909) 13,756,055 Unsecured loan (repaid)/taken , net (12,000,000) - (55,037,558) 5,937,991 Finance charges (net) (58,457,876) (68,929,077) (136,833,862) (156,434,251) Net cash flow from / (used in) financing activities (C) (66,213,570) (44,802,761) (217,248,329) (136,740,204) Net increase /(decrease) in cash and cash equivalents (A + B + C) 40,331,047 10,097,485 107,820,992(29,093,025) Cash and cash equivalents at the beginning of the year 16,969,566 6,872,081 32,093,363 61,186,388 Cash and cash equivalents at the end of theyear 57,300,612 16,969,566 139,914,354 32,093,363

Digitally signed RAHU by RAHUL PURI Date: 2021.05.25 L PURI 15:41:35 +05'30'

;r

Phone No.: 2887 8000 2887 0069

Website: http://www.uttamabuwala.com

Uttam Abuwala Ghosh & Associates Cartered Accountants

Independent Auditor's Report on the Standalone Financial Results

To The Board of Directors Mukta Arts Limited

Report on the Audit of the Standalone Annual Financial Statement

Qualified Opinion:

We have audited the accompanying standalone annual financial results or Mukta Arts Limited {hereinaltcr referred to as the "Company") for the year ended 31 March 2021, attached herewith ('the Statement'). being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations').

In our opinion and to the best of our information and according to the explanations given to us, except the possible effects of the matters described in "Basis for Qualified Opinion" Para below, these financial results:

• i. are presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 in this regard; and

• ii. give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards and other accounting principles generally accepted in India or the ct Profit and other comprehensive income and other financial information of the compan)- for the year ended March 31, 2021.

Basis for Qualified Opinion:

As at March 31, 2021, the company's investment in its subsidiary (including deemed invc�1men1). Whi\tling ,,oods International Limited (WWIL) a joint venture between the company and Maharashtra Film. Stage and Cullura: Development Corporation Limited (MFSCDCL), aggregates to Rs 19,9'1 11 1, 1 mterest n:c.:e1vable and rent receivable aggregate to Rs. 62,36,40,.'i84/- recoverable f[r] om WWI L. As fully explained in Note 42 ro the accompanying audited financial statements, the Order of February 9, 2012 passed by the High Coun or judicature at Bombay ('High Court'), had quashed the joint Venture Agreement (' JV J\ ") between the compan) 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 10 vacate the premises. WWIL's petition for special leave to appeal tiled with the Supreme Court of India had also been d1s1111ssed. The Company and WWIL had tiled application to review the said order with the I ligh Court and an lnu.:rim !>la)- wa� granted on July 30, 2014 which required deposit of Rs. I 0,00,38,000/- by January 2015 against payment of arrears or rent for the year 2000-0 I 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, tilf financial year 2016-17. R. 11,35,38,000/- has been paid by the Parent Company and for financial year 2017-18 to 2020-21 Rs. 45.00.0001- per annum has been paid by WWII The State Govt. of Maharashtra and MFSCDCL challengcd the order or the I ligh Court in the Supreme Court which was dismissed by the Supreme Court on September 22, 2014. The amou111 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

• Additionally, without giving effect to the matter as stated above, WWI L's net worth stands fully eroded as at JI March, 2021. Having regard to the circumstances explained above and pending fioal outcome of the rnat1er 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 Hig� Court's Orders. Accordingly. the 1mpac1 on the carr� 1ng vnl11e of

==> picture [499 x 66] intentionally omitted <==

Phone No.: 2887 8000 2887 0069

Uttam Abuwala Ghosh & Associates

Website: http://www.uttamabuwala.com

Chartered Accountants

investments, recoverability of loans and advances and consequential impact on profit/ loss for the year and reserves is not determinable.

Management's Responsibility for the audit of the Financial Statements:

These Standalone annual financial results have been prepared on the basis of the standalone annual financial statements.

The Company's Management and the Board of Directors are responsible for the preparation and presentation uf these standalone annual financial results that give a true and fair view of the net profit and other comprehensi, e income and other financial information in accordance withrecognition and measurement principles laid down in Indian Accounting Standards prescribedunder Section 133 of the Act and other accounting principles generally accepted in India and ·incompliance with Regulation 33 of the Listing Regulations. This responsibilit) also includesrnaintenancc or adequate_ accounting records in accordance with the provisions of the Act forsafcguarding of the assets of the Company and for preventing and detecting f[r] auds and otherirrcgularities; selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and the design. implementation and maintenance ofadequate internal financial controls, that were operating effectively for ensuring accurac) and completeness of the accounting records, relevant to the preparation and presentation of thestandalone annual financial results that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.

In preparing the standalone annual financial results, the Management and the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing,as applicable, matters rdated to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the Company's financial repo11ing process.

Auditor's Responsibilities for the Audit of Hie Standalone Annual Financial Results

Our objectives are to obtain reasonable assurance about whether the Standalone annual financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise lrom lraud ur error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone annual financial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain Professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone annual financial resulb, ,, hcthcr due to ·fraud or error, design and perform audit procedures responsive to those risks. and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a 111atern1I misstatement resulting from fraud is higher than for one resulting f[r] om error, rts fraud may involve collusion. forgery, intentionalomissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Acl, we are also rc!:>ponsiblc tor e;,.prc��ing our opinion through a separate report on the complete set of financial statements on whether the com pan) ha!> adequate internal financial controls with reference to financial statements in place and the operating

• • effectiveness of such controls .

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the financial results made by the Management and Board of Directors.

Phone No.: '.2887 8000 2887 0069

Website: http://,,·ww .uttama buwa la.com

Uttam Abuwala Ghosh & Associates Clarterer Accountants

• Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis or accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events Ir

• or conditions that may cast significant doubt on the appropriateness of this assumption. we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the n:laied disclosures in the standalone annual financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor"s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone annual financial results, including the disclosures, and whether the standalone annual financial results represent the underlying transactions and ev�nts in a ma�ner that achieves fair presentation.

We communicate with those charged with governance regarding, among other mailers, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identit) during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matter

We report that the figures for the quarter ended March 31, 2021 represent the derived figures between the audited figures in respect of the financial year ended March 31, 2021 and the published unaudited year-tu-date ligun::. up to December 31, 2020 being the date of the end of the third quarter of the current financial year, which were subjected to a limited review by us.

For Uttam•Abuwala Ghosh & Associates

Chartered Accounta

Firm No. 111184W , ,; CA Subhash Jhunjhu ": _Ji_ Partner Membership No.: 016331 UDIN: 2. \ o I b. I A-A I.\ A-8 Tb 8 2..-:t-

Date: May 25, 2021 Place: Mumbai

•

Head Office: 409/410 Abuwala House, Gundecha Industrial Complex, ext to Big Bazaar, Akurli Road, Kandivali (East), Mumbai - 400 101. Email: uttam(a uttamabuwala.com 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's Report on Consolidated Financial Results

To

The Board of Directors Mukta Arts Limited

Report on the Audit of the Consolidated Annual Financial Statement

Qualified .Opinion:

We have audited the accompanying consolidated annual financial results of Mukta Arts Limited (hercinaticr referred to as the "Holding Company") and its subsidiaries (Holding Company and its subsidiaries together referred to as "the Group") and its Joint Ventures for the year ended 31 March 2021, attached herewith, being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligation� and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulation').

ln our opihion and to the best of <eur information and according to the explanations given to us and based on the consideration of reports of other auditors on separate audited financial statements of the subsidiaries and joint venture, except the possible effects of the matters described in "Basis for Qualified Opinion" Para below, the aforesaid consolidated annual financial results:

a) include the annual financial results of the following entities

• i. Subsidiaries:.

• I. Mukta Creative Ventures Limited

• Whistling Woods International Limited

• Mukta A2 Cinemas Limited

• Mukta Tele Media Limited

• Connect.] Limited

• Mukta A2 Multiplex SPC (incorporated in Bahrain)

• Whistling Woods International Foundation (100% Subsidiary of Whistling Woods International Limited

ii. Joint Ventures:

• I. Mukta VN Films Limited

b) are presented in accordance with requirements of Regulation 33 of SEBI (Listing Obligation and Disclosure Requirement) Regulations, 20 I 5 as amended; and

c) gives a true and fair view in conformity with the aforesaid Indian Accounting Standards and other accounting principles generally accepted in India, of the consolidated net loss, total compreh<,nsive income (loss) and other financial information of the group and its joint venture, for the year ended March 31, 2021.

Basis for Qualified Opinion:

• I. As at March 31, 2021, the company's investment in its subsidiary (including deemed investment). Whistling woods In.ternational Limited (WWIL) a joint venture between the company and Maharashtra Film. Stage: and

• • Cultural Development Corporation Limited (MFSCDCL), aggregates to Rs. 19.95.1 1.218/- and loans and recoverable from

• advances, deposits, interest receivable and rent receivable aggregate to Rs. {>2,36.40,584/WWIL. As fully explained in Note 44 to the accompanying audited financial statements, the Order of February 9, 2012 passed by the High Court of judicatµre at Bombay ('High Court'), had quashed the joint Venture

Head Office: 409/410 Abuwala House, Gundecha Industrial Complex, Next to Big Bazaar, Akurli Road, Kandivali (East), Mumbai - 400 101. Email: uttam(@.uttamabuwala.com Branch Offices: Abu Road, Jodhpur, Nashik, Bhopal & Hyderabad

Email: uttam(@.uttamabuwala.com

Phone No.: 2887 8000 2887 0069

Uttam Abuwala Ghosh & Associates

Website: http://www.uttamabuwala.com

Chartered Accountants

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. WWI L's petition for special leave to appeal filed with the Supreme Court of India had also been dismissed. The Company and WWIL had tiled 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 20 I 5 against payment of arrears of rent for the year 2000-01 'to 2013-14.and payment ofRs.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. I 1.35,38.000/­ has been paid by the Holding Company and for financial year 2017-18 to 2020-21 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 Consolidated 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 March· 3 l, 2021. 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 Cowi's Orders. Accordingly, the impact on the carrying value of investments, recoverability of loans and advances and consequential impact on loss for the year arid reserves is not determinable.

1. The Ministry of Corporate Affairs (MCA) on March 30, 2019 notified Ind AS 116 "Leases" as part or Compan,es (Indian .Accounting Standards) Amendment Rules, 2019. The new standard is effective from reporting periods beginning on or after April I, 2019. Pending final outcome of the matter under litigation a� mentioned above, no adjustment has been made in WWI L's Financial Statements with respect to Ind AS L 16 on the land rights.

2. WWIL has not carried out physical verification of Property, Plant and Equipment comprising of Plant & Machinery, Furniture and Fixtures and Office Equipment, whose written down value aggregates to Rs. 22,307,340 as at March 31, 2021, which is not in accordance with its phased program for physical verilication of assets. Consequently, we are unable to comment on the existence. completeness and valuation of the aforesaid items of Property, Plant and Equipment.

Emphasis of Matter

• I. We draw attention to Note no. 42 of the consolidated financial statements for the year ended 31st March, 2021 wherein the group has reported on the impact of COVID-19 Pandemic on the operations or the company. Howe;er, the actual impact may be significantly different than estimated as it is not possible to complete!) evaluate and quantify the impact of Covid-19 on the future operations of the company.

• ,

• During the year ended March 31, 2021, Mukta A2 Cinemas Ltd (Subsidiary) has incurred loss before tax (including other comprehensive income) of Rs 19,63,32,415/- and has accumulated losses of Rs. 39,56,87,247/­ as on March 3 1, 2021. Further the company's net worth has been fully eroded and there is a deficit or Rs. 38,06,87,247/- in the shareholder's equity as on March 31, 2021. 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, management believes that it is appropriate to prepare financial statements on a going

• concern basis .

Head Office: 409/410 Abuwala House, Gundecha Industrial Complex, Next to Big Baz Akurli Road, Kandivali (East), Mumbai - 400 101. Email: uttam@uttamabuwa a.com Branch Offices: Abu Road, Jodhpur, Nashik, Bhopal & Hyderabad

Phone No.: 2887 8000 2887 0069

Website: http://www.uttamabuwala.com

Uttam Abuwala Ghosh & Associates Chartered Accountants

1. There is an emphasis of matter with regards to the financial statements of Mukta A2 Multiplex S.P.C. on account of deficit in the Shareholder's Equity and the company's current liability exceeding its current assets as on March 31, 2021. These conditions indicate the existence of material uncertainty which may cast a significant doubt about the Company's ability to continue as a going concern.

Our report is not modified in respect of these matters.

Management's Responsibility for the audit of the Financial Statements:

These Consolidated annual financial results have been prepared on the basis of the Consolidated annual financial statements.

The Company's Management and the Board of Directors are responsible for the preparation and presentation or these Consolidated annual financial results that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with recognition and measurement principles laid down in Indian Accounting Standards prei,Cribed under Section 133 of the Act and other accounting principles general!, accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent: . and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively' for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Consolidated annual financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Consolidated annual financial results, the Management and the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Annual Financial Results

Our objectives are to obtain reasonable assurance about whether the Consolidated annual financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opipion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can • arise from .fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated annual linancial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain profes�iollal skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Consolidated annual financial results, whether due

• to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that i�

• • sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting fraud is higher than for one resulting from error, as fraud may invqlve collusion, forgery. intentional omissions, misrepresentations, or the override of internal control.

Head Office: 409/410 Abuwala House, Gundecha Industrial Complex, Next to Big Bazaar, Akurli Road, Kandivali (East), Mumbai-400 101. Email: uttam(@uttamabuwala � . Branch Offices: Abu Road, Jodhpur, Nashik, Bhopal & Hyderabad . .,,, IJ ::, . " □ ' �,, it

Phone No.: 2887 8000 2887 0069

Website: http://www.uttamabuwala.com

Uttam Abuwala Ghosh & Associates Chartered Accountants

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion through a separate report on the complete set of financial statements on whether the company has adequate ctiveness or such internal financial controls with reference to financial statements in place and the operating eff<;: controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness or accounting estimates and related disclosures in the financial results made by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis or · accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the appropriateness of this assumption. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Consolidated annual financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Compan¥ to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Consolidated annual financial results, including the disclosures, and whether the Consolidated annual financial results represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial results/financial information or the entities within the Group to express an opinion on the Statement. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the statement or which we are the independent auditors. For the other entities included in the Statement, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our a1:1dit opinion.

· We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence; and where applicable, related safeguards.

Other Matter

• (a) The Statement include the audited financial results of six subsidiary whose financial statements reflect total assets of Rs. 63,70,49,690/- as at 31 March 2021, total revenue of Rs. 53,04,02,549/- and total net loss after ta>­ of Rs.32,32,936/- for the quarter ended 31 March 2021 and for the period from J April 2020 to 31 March 2021 respectively, as considered in the Statement. These financial statements/ financial information have been audited by other auditors whose reports have been furnished to us by the management and our opinion on the consolidated Financial Results, in so far as it relates to the amounts and disclosures included in respect or these subsidiaries, is based solely on the reports of the other auditors and the procedures performed by us are as stated in paragraph above.

• Our opinion on the Statement is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditor.

==> picture [66 x 52] intentionally omitted <==

----- Start of picture text -----

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Head Office: 409/410 Abuwala House, Gundecha Industrial Complex, Next to Big Raza �� stc Akurli Road, Kandivali (East), Mumbai - 400 101. Email: uttam@uttamabuwala.c z * 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

• (b) The consolidated financial statements also include the Group's share of net loss of Rs. 4 7,60,673/- for the year ended 31st March, 2021, as considered in the consolidated financial statements, in respect of one joint venture, I

• whose financial statements / financial infonnation have not been audited by us. These financial statements financial infonnation have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of joint ventures, is based solely on the reports of the other auditors and the procedures perfonned by us as stated in paragraph above.

Our opinion on the statements is not modified in respect of above matters.

• (c) We report that the figures for the quarter ended March 31, 2021 represent the derived figures between the audited figures in respect of the financial year ended March 31, 2021 and the published unaudited year-to-date figures up to December 31, 2020 being the date of the end of the third quarter of the current financial year, which were subjected to a limited review by us.

For Uttam Abuwala Ghosh & Associates Chartered Accountants Fi\��JN: IIIMZ� � . �,nffe/

CA Subhash Jhunjhunwala

Partner Membership No.: 016331 UDIN: 2.. l O lG 3 ":>\A-AA AB U-;f-0 b 6

Date: May 25, 2021 Place: Mumbai

•

Head Office: 409/410 Abuwala House, Gundecha Industrial Complex, Next to Big Bazaar, Akurli Road, Kandivali (East), Mumbai - 400 101. Email: uttam@uttamabuwala.com Branch Offices: Abu Road, Jodhpur, Nashik, Bhopal & Hyderabad

Statement on Impact of Audit Qualifications (for Audit Report on Standalone Financial Statements with Modified Opinion) submitted along-with Annual Audited Financial Results for the Year ended March 31, 2021 [ See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016]

==> picture [456 x 207] intentionally omitted <==

----- Start of picture text -----

I.
Sl. Particulars Audited Figures (as Adjusted Figures
No. reported before (audited figures
adjusting for after adjusting for
qualifications) qualifications)
1. Total Income 29,80,77,938 29,80,77,938
2. Total Expenditure 20,75,83,825 20,75,83,825
3. Net Profit/(Loss) before Tax 9,04,94,113 9,04,94,113
4. Earnings Per Share 3.12 3.12
5. Total Assets 2,51,23,69,932 2,51,23,69,932
6. Total Liabilities 1,03,34,00,092 1,03,34,00,092
7. Net Worth 1,47,89,69,840 1,47,89,69,840
Any other financial item(s) (as felt
8. appropriate by the management) - -
----- End of picture text -----*

* No adjustments made as impact not quantifiable

II. Audit Qualifications:

1. Qualification 1:

a. Details of Audit Qualification:

As at March 31, 2021, 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. 62,36,40,584/recoverable from WWIL. As fully explained in Note 42 to the accompanying audited 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 2020-21 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.

Additionally, without giving effect to the matter as stated above, WWIL's net worth stands fully eroded as at 31 March, 2021. 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 profit / loss for the year and reserves is not determinable.

b. Type of Audit Qualification: Qualified Opinion

• c. Frequency of Qualification: Repetitive (continuing since 2011)

• d. For Audit Qualification(s) where the impact is quantified by the auditor, Management's Views: Not Applicable

• e. For Audit Qualification where the impact is not quantified by the auditor:

(i) Management’s Estimation on the impact of Audit Qualification:

Not Applicable

(ii) If management is unable to estimate the impact, reasons for the same:

Having regard to the circumstances 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.

(iii) Auditors' Comments on (ii) above:

As per the explanation provided by the Management in point (ii) above, 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.

For Mukta Arts Limited

Digitally signed by RAHUL PURI Sd/- Date: 2021.05.25 15:42:16 +05'30' Kewal Handa Rahul Puri Chairman – Audit Committee Managing Director

RAHU

L PURI

==> picture [155 x 55] intentionally omitted <==

Prabuddha Dasgupta Chief Financial Officer

Date: May 25, 2021 Place: Mumbai

For M/s Uttam Abuwala Ghosh & Associates

Chartered Accountants Firm No. 111184W (Statutory Auditors)

==> picture [66 x 38] intentionally omitted <==

CA Subhash Jhunjhunwala (Partner) Membership No. 158844

Date: May 25, 2021 Place: Mumbai

Statement on Impact of Audit Qualifications (for Audit Report on Consolidated Financial Statements with Modified Opinion) submitted along-with Annual Audited Financial Results for the Year ended March 31, 2021 [ See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016]

==> picture [404 x 190] intentionally omitted <==

----- Start of picture text -----

Sl. Particulars Audited Figures (as Adjusted Figures
No. reported before (audited figures
adjusting for after adjusting for
qualifications) qualifications)
1. Total Income 87,68,73,164 87,68,73,164
2. Total Expenditure 98,48,56,589 98,48,56,589
3. Net Profit/(Loss) before Tax (10,79,83,425) (10,79,83,425)
4. Earnings Per Share (5.47) (5.47)
5. Total Assets 2,43,77,84,029 2,43,77,84,029
6. Total Liabilities 2,42,83,76,504 2,42,83,76,504
7. Net Worth (excluding Minority Interest) (3,14,29,342) (3,14,29,342)
Any other financial item(s) (as felt
8. appropriate by the management) - -
----- End of picture text -----*

No adjustments made for Qualifications as impact not quantifiable

II. Audit Qualifications:

1. Qualification 1:

a. Details of Audit Qualification:

1. As at March 31, 2021, 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. 62,36,40,584/- recoverable from WWIL. As fully explained in Note 44 to the accompanying audited 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 Holding Company and for financial year 2017-18 to 2020-21 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 Consolidated 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 March 31, 2021. 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.

1. The Ministry of Corporate Affairs (MCA) on 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 periods beginning on or after April 1, 2019. Pending final outcome of the matter under litigation as mentioned above, no adjustment has been made in WWIL’s Financial Statements with respect to Ind AS 116 on the land rights.

2. WWIL has not carried out physical verification of Property, Plant and Equipment comprising of Plant & Machinery, Furniture and Fixtures and Office Equipment, whose written down value aggregates to Rs. 22,307,340 as at March 31, 2021, which is not in accordance with its phased program for physical verification of assets. Consequently, we are unable to comment on the existence, completeness and valuation of the aforesaid items of Property, Plant and Equipment.

3. b. Type of Audit Qualification: Qualified Opinion

4. c. Frequency of Qualification: Repetitive (continuing since 2011)

5. d. For Audit Qualification(s) where the impact is quantified by the auditor, Management's Views: Not Applicable

6. e. For Audit Qualification where the impact is not quantified by the auditor:

(i) Management’s Estimation on the impact of Audit Qualification:

• Not Applicable

(ii) If management is unable to estimate the impact, reasons for the same:

Having regard to the circumstances 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. Further, the management of WWIL believes that it is appropriate to prepare the financial statements on a going-concern basis based on its assessment of the merits of the case, plans for the future and support provided by its holding company.

(iii) Auditors' Comments on (ii) above:

As per the explanation provided by the Management in point (ii) above, 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.

For Mukta Arts Limited

Digitally signed RAHU Sd/- by RAHUL PURI Date: 2021.05.25 L PURI 15:42:39 +05'30' Rahul Puri Kewal Handa Managing Director Chairman – Audit Committee

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Prabuddha Dasgupta Chief Financial Officer

Date: May 25, 2021 Place: Mumbai

For Uttam Abuwala Ghosh & Associates

Chartered Accountants Firm No. 111184W (Statutory Auditors)

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CA Subhash Jhunjhunwala (Partner) Membership No. 158844

Date: May 25, 2021 Place: Mumbai

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Mukta Arts’ standalone PBT up from INR 454.90 lacs to INR 904.94 lacs

Mukta Arts Limited ended the year on a positive note with Standalone Q4 Revenue improving 18% from Q3 to Rs 720 lacs. Revenue for the year was Rs 3,258 lacs and PBT Rs 453 lacs.

Whistling Woods International, its subsidiary in the education space posted an 18% growth in revenue from 2019, ending the year at Rs 5583 lacs and a PBT of Rs 397 lacs

The subsidiaries in the cinema space saw movies underperforming in Q4, further aggravated by the CoVID-19 closures. Accounting policy changes based on IndAS requirements further hit their bottom line.

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29[th] June 2020, Mumbai

Digitally RAHU signed by RAHUL PURI Date: L 2021.05.25 PURI 15:42:58 +05'30'

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