Mukta Arts Limited — Others, 28-05-2025: Change in Auditors

Mukta Arts Limited has announced a board meeting to consider the financial results for the quarter and half-year and approved key appointments including new statutory, secretarial, and internal auditors. Mrs. Madhumati Ramchandra Lele was appointed as an additional independent director (pending shareholder approval), and Ms. Pratiksha Panchal as company secretary. The board approved a BHD 1,00,000 investment in its Bahrain subsidiary Mukta A2 Multiplex W.L.L and plans a postal ballot to regularize Mrs. Lele’s directorship. The audit report includes a qualified opinion due to a legal dispute involving joint venture subsidiary Whistling Woods International Ltd, which has eroded net worth. Delays in some statutory dues and non-accrual of interest on inter-corporate deposits were noted but linked to business strategy. Subsidiaries Mukta A2 Cinemas Ltd and Mukta A2 Multiplex WLL face significant losses and negative net worth, raising going concern concerns, though management remains positive. Loans to subsidiaries total Rs.115.25 Cr and investments Rs.50.91 Cr. Internal controls are adequate except for issues related to subsidiaries. No frauds or CSR non-compliances were reported. Legal and subsidiary risks remain key considerations for investors.