Mukta Arts Limited — Others, 28-05-2025: Appointment

Mukta Arts has announced a board meeting to approve the financial results for the quarter and half-year. The Board appointed M/s. GAMS & Associates LLP as new Statutory Auditors pending shareholder approval, re-appointed current Secretarial and Internal Auditors, and added Mrs. Madhumati Ramchandra Lele as Additional Independent Director, also subject to approval. Ms. Pratiksha Panchal will join as Company Secretary. The company invested BHD 1 lakh in its Bahrain subsidiary and will seek shareholder consent to regularize Mrs. Lele’s appointment.

The auditor issued a qualified opinion due to uncertainty over recoverability of Rs. 19.95 Cr investments and Rs. 64.13 Cr loans in Whistling Woods International Limited, a JV under legal dispute with fully eroded net worth. Similar concerns exist for subsidiaries Mukta A2 Cinemas Ltd and Mukta A2 Multiplex WLL, both showing net worth erosion and accumulated losses.

Inter-corporate loans of Rs. 111.41 Cr and investments of Rs. 50.91 Cr were outstanding to subsidiaries. Some deposits lacked interest accruals as aligned with management intent. Statutory dues were mostly timely, with minor delays in GST, professional tax, provident fund, show tax, income tax, and employee state insurance. Disputes mainly involve income and service tax.

Internal controls were adequate except for risks linked to WWIL investments. No fraud or whistleblower complaints were noted. Corporate social responsibility spending was fully met. Resolving WWIL’s legal issues and improving subsidiary losses remain key for the company’s financial stability and shareholder value.