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Mukta Arts Ltd.

BSE: 532357 | NSE: MUKTAARTS |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE374B01019 | SECTOR: Media & Entertainment

BSE Live

Jul 26, 16:00
38.10 1.80 (4.96%)
Volume
AVERAGE VOLUME
5-Day
3,667
10-Day
3,652
30-Day
5,268
5,274
  • Prev. Close

    36.30

  • Open Price

    38.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Jul 26, 15:40
38.25 1.80 (4.94%)
Volume
AVERAGE VOLUME
5-Day
14,973
10-Day
12,885
30-Day
16,671
41,635
  • Prev. Close

    36.45

  • Open Price

    37.60

  • Bid Price (Qty.)

    38.25 (200)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Auditor's Report

Report on the Financial Statements We have audited the accompanying fnancial statements of Mukta Arts Limited (''the Company''), which comprise the Balance sheet as at 31 March 2013, the Statement of proft and loss and the Cash fow statement for the year then ended, and a summary of signifcant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements Management is responsible for the preparation of these fnancial statements that give a true and fair view of the fnancial position, fnancial performance and cash fows of the Company in accordance with the Accounting principles generaly accepted in india. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the fnancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor''s Responsibility Our responsibility is to express an opinion on these fnancial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fnancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the fnancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the fnancial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the fnancial statements. We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our qualifed opinion. Basis for Qualifed Opinion a. As explained in Note 3.39 to the fnancial statements, the remuneration paid to the managing director of the Company for the year ended 31 March 2013 amounting to Rs 9,979,490 (including fees as flm director) and for earlier fnancial years from 2005-06 to 2011-2012 aggregating to Rs 100,626,669, is in excess of the limits prescribed under Schedule XIII to the Act. The Company has made applications to the Central Government seeking post-facto approval for earlier years, which is awaited; application for the current year is proposed to be made. During the previous year, the Company had received approval for part of the excess remuneration paid (approval received for remuneration aggregating to Rs 25,200,000 for the fnancial years 2005-06, 2006-07and 2007-08). The Company had made an application to authorities requesting reconsideration/ approval for the balance excess remuneration. Pending fnal communication from the authorities in this regard and application for the current year, no adjustment has been made in these fnancial statements. b. As at 31 March 2013, the Company''s investment in its subsidiary, Whistling Woods International Limited (WWI), a joint venture between the Company and Maharashtra Film, Stage and Cultural Development Corporation Limited (''MFSCDCL''), aggregates to Rs 369,997,000 and loans, advances and deposits include Rs 424,096,877 recoverable from WWI. As more fully explained in Note 3.40 to these fnancial statements, through its order of 9 February 2012, the High Court of Judicature at Bombay (''High Court'') has quashed the Joint Venture Agreement (''JVA'') between the Company and MFSCDCL and passed consequential orders. WWI''s petition for special leave to appeal fled with the Supreme Court of India has been dismissed. However, the Company and WWI have fled applications to review the said order with the High Court, which have not yet come up for hearing. During the year, the Public Works Department (PWD) Engineer has given his valuation report based on the Balance sheet of WWI as at 31 March 2011. Further, MAL has made an application to the Government of Maharashtra in February 2013 to appoint expert valuers to determine the market price. Also, WWI''s net worth stands fully eroded as at 31 March 2013 - management is currently evaluating plans for the future. Having regard to the circumstances explained above and pending fnal outcome of the matter under litigation, the Company has not made any adjustment to the carrying value of investments in and amounts due from WWI. Accordingly, the impact on the carrying value of investments, recoverability of loan and advances, proft for the year and consequentially on the dividend for the year is not determinable. Qualifed opinion 1. In our opinion and to the best of our information and according to the explanations given to us, except for the matter relating to the investment in and loans and advances recoverable from the Company''s subsidiary WWIL referred to in paragraph (b) of the Basis for Qualifed Opinion paragraph above, the outcome and consequent adjustments to the fnancial statements of which cannot be presently determined, and for the matter relating to the remuneration to the managing director referred to in paragraph (a) of the Basis for Qualifed Opinion paragraph above, the said fnancial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India: (a) in the case of the Balance sheet, of the state of affairs of the Company as at 31 March 2013; (b) in the case of the Statement of proft and loss, of the proft of the Company for the year ended on that date; and (c) in the case of the Cash fow statement, of the cash fows of the Company for the year ended on that date. Report on other Legal and Regulatory Requirements 2. As required by the Companies (Auditor''s Report) Order, 2003 (''the Order''), issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specifed in paragraphs 4 and 5 of the said Order. 3. As required by section 227(3) of the Act, we report that: (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; (b) in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; (c) the Balance sheet, Statement of proft and loss and Cash fow statement dealt with by this report are in agreement with the books of account; (d) in our opinion, the Balance sheet, Statement of proft and loss and Cash fow statement comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act; and (e) on the basis of written representations received from the directors of the Company as at 31 March 2013, and taken on record by the Board of Directors, none of the directors is disqualifed as on 31 March 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act. Annexure to the Independent Auditors'' Report - 31 March 2013 (Referred to in our report of even date) i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fxed assets except that tagging of certain fxed assets is yet to be completed. (b) The Company has a regular programme of physical verifcation of its fxed assets by which all fxed assets are verifed annually. In our opinion, this periodicity of physical verifcation is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verifcation during the year. (c) The Company has not disposed off any fxed assets during the year. ii) (a) The inventory has been physically verifed by the management during the year. In our opinion, the frequency of such verifcation is reasonable. (b) The procedures for the physical verifcation of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. (c) The Company is maintaining proper records of inventory. The discrepancies noticed on verifcation between the physical stocks and the book records were not material. (iii) The Company has neither granted nor taken any loans, secured or unsecured, to or from companies, frms or other parties covered in the register maintained under Section 301 of the Act. (iv) In our opinion and according to the information and explanations given to us, controls relating to purchase of fxed assets, customer contracting and tracking of amounts billable need to be further strengthened, and having regard to the explanation that certain services rendered/ rights sold are of a specialised nature and are rendered/ sold to specifc buyers and suitable alternative sources are not available to obtain comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventories (food and beverage items) and fxed assets and with regard to sale of services and food and beverage items. We have not observed any material weaknesses during the course of audit. (v) In our opinion, and according to the information and explanations given to us, there are no contracts and arrangements the particulars of which need to be entered into the register maintained under Section 301 of the Act. (vi) In our opinion and according to the information and explanations given to us, Company has not complied with the provisions of Sections 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the loan taken and repaid during the year from a director shareholder of the Company. (vii) In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business. (viii) The Central Government has not prescribed the maintenance of cost records under Section 209(1)(d) of the Act for any of the services rendered/ food and beverages sold by the Company. (ix) (a) According to the information and explanations given to us and on the basis of our examination of records of the Company, except for Value added tax dues aggregating to Rs 35,592,323 amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident fund, Employees'' State Insurance, Income tax, Sales tax, Wealth tax, Service tax, and other material statutory dues have been generally regularly deposited during the year by the Company with appropriate authorities. As explained to us, the Company did not have any dues on account of Excise duty, Custom duty and Investor Education and Protection Fund. According to the information and explanations given to us, the following undisputed statutory dues are outstanding as at 31 March 2013 for a period of more than six months from the date they became payable: Name of the Statute Nature of dues Amount * Period to which it Due date relates Maharashtra Value Added Value-added tax 1,173,077 April 2005 to March 2006 May 2005 to tax Act, 2002 April 2006 Maharashtra Value Added Value-added tax 9,069,231 April 2006 to March 2007 May 2006 to tax Act, 2002 April 2007 Maharashtra Value Added Value-added tax 4,138,462 April 2007 to March 2008 May 2007 to tax Act, 2002 April 2008 Maharashtra Value Added Value-added tax 2,096,154 April 2008 to March 2009 May 2008 to tax Act, 2002 April 2009 Maharashtra Value Added Value-added tax 1,580,769 April 2009 to March 2010 May 2009 to tax Act, 2002 April 2010 Maharashtra Value Added Value-added tax 1,384,615 April 2010 to March 2011 May 2010 to tax Act, 2002 April 2011 Maharashtra Value Added Value-added tax 952,380 April 2011 to August 2011 May 2011 to tax Act, 2002 September 2011 *Credit available Rs 12,885,786 pending adjustment. Except for the above, there are no undisputed amounts payable in respect of Provident fund, Employees'' State Insurance, Income tax, Sales tax, Wealth tax, Service tax, and other material statutory dues which were in arrears as at 31 March 2013 for a period of more than six months from the date they became payable. (b) According to the information and explanations given to us, the following dues of Service tax have not been deposited by the Company on account of dispute: Name of the statute Nature of Amount dues (Rs)* Chapter V of the Finance Service Tax 800,000 Act, 1994 Chapter V of the Finance Service Tax 875,000 Act, 1994 Name of the Statute Period to which Forum where the dispute is the amount relates pending Chapter V of the Finance April 1999 -October Customs, Excise & Service Tax Appellate 2003 Tribunal Chapter V of the Finance November 1996 Customs, Excise & Service Tax Appellate -November 2001 Tribunal I *- excludes amount deposited under protest Rs 1,240,000 (x) The Company does not have any accumulated losses at the end of the fnancial year and has not incurred cash losses in the current and in the immediately preceding fnancial year. (xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to its bankers or to any fnancial institutions. The Company did not have any outstanding debentures during the year. (xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities. (xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund or nidhi/ mutual beneft fund/ society. (xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. (xv) In our opinion and according to the information and explanations given to us, the terms and conditions on which the Company has given guarantees for loans taken by others from banks or fnancial institutions are not prejudicial to the interest of the Company. (xvi) In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised. (xvii) According to the information and explanations given to us and on an overall examination of the Balance sheet of the Company, we are of the opinion that the funds raised on short-term basis have not been used for long-term investment. (xviii) The Company has not made any preferential allotment of shares during the year to companies/ frms/ parties covered in the register maintained under Section 301 of the Act. (xix) The Company did not have any outstanding debentures during the year. (xx) The Company has not raised any money by public issues during the year. (xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit. For B S R & Co. Chartered Accountants Firm''s Registration No: 101248W Bhavesh Dhupelia Place : Mumbai Partner Date : 28 May 2013 Membership No: 042070