We have audited the accompanying Standalone financial statements of Mukta Arts Limited (“the Company”), which
comprise the Standalone Balance Sheet as at March 31, 2026, and the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in Equity and statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies and other explanatory information
(hereinafter referred to as ‘the standalone financial statements').
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects
of the matters described in the Basis of Qualified Opinion paragraph below, the aforesaid Standalone financial statements
give the information required by the Companies Act, 2013 (‘the Act') in the manner so required and give a true and fair view
in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March
31, 2026, its profit (including other comprehensive income), the changes in equity and its cash flows for the year ended
on that date.
Basis of Qualified Opinion
As at March 31, 2026, 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. 64,13,83,146/- 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 Company
and for financial year 2017-18 to 2021 -22 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 March 31,2026.
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.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the
Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant
to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
standalone financial statements of the current period. These matters were addressed in the context of our audit of the
standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
We have determined that there are no key audit matters to communicate in our report for the year ended 31 March 2026.
Information other than the Financial Statements and Auditors’ Report thereon
The Company's Board of Directors are responsible for the preparation of the other information. The other information
comprises the information included in the Board's Report including Annexure(s) to Board's Report, but does not include the
Financial Statements and our auditor's report thereon.
Our opinion on the Financial Statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge
obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management for the Standalone Financial Statements
The Company's Management and the Board of Directors are responsible for the matters stated in section 134(5) of the Act
with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position,
financial performance (including other comprehensive income), changes in equity and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the accounting Standards specified under
section 133 of the Act. 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 design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due
to fraud or error.
In preparing the financial statements, management is 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to
do so.
The Board of Directors are also responsible for overseeing the company's financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone financial statements 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 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 financial statements.
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 financial statements, whether 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 material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
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 Companies Act, 2013, we are also responsible for expressing
our opinion on whether the company has adequate internal financial controls system 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 made by management.
• Conclude on the appropriateness of management's use of the going concern basis of 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 Company's ability to continue as a going concern. 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 standalone financial statements 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 financial statements, including the
disclosures, and whether the standalone financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable
that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our
work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
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.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Other Matters
This statement includes the result for the quarter ended 31st March, 2026, being the balancing figures between the audited
figures in respect of the full financial year ended 31st March, 2026 and the published unaudited year-to-date figures up to
the third quarter, i.e., 31st December 2025.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 (“the Order”) issued by the Central Government of India
in terms of sub-section (11) of section 143 of the Act we give in the Annexure A, a statement on the matters specified
in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears
from our examination of those books.
(c) The Standalone Balance Sheet, Standalone Statement of Profit and Loss including the Statement of Other
Comprehensive Income, the Standalone Cash Flow Statement and the Standalone Statement of Changes in
Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards
specified under Section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on March 31, 2026 taken on record
by the Board of Directors, none of the directors is disqualified as on March 31,2026 from being appointed as a
director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the Internal Financial Controls over Financial Reporting of the Company and the
operating effectiveness of such controls, refer to our separate report in Annexure B, and
(g) In our opinion, the managerial remuneration for the year ended March 31,2026 has been paid/provided by the
Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to
the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31,2026 on its financial position
in its standalone financial statements - Refer Note No. 39.
ii. The Company does not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses - Refer Note No. 46.
iii. There was no amount required to be transferred to the Investor Education and Protection Fund by the
Company during the year ended March 31,2026 - Refer Note No. 47.
iv. a) The management has represented that, to the best of its knowledge and belief, other than as disclosed
in the notes to the accounts, no funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the company to or in
any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
b) The management has represented, that, to the best of its knowledge and belief, other than as
disclosed in the notes to the accounts, no funds have been received by the company from any person(s)
or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded
in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
and Based on audit procedures which we considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representations under sub clause
(i) and (ii) contain any material mis-statement.
c) Based on such audit procedures that the we have considered reasonable and appropriate in the
circumstances, nothing has come to their notice that has caused them to believe that the representations
under sub-clause (a) and (b) as specified above contain any material misstatements.
v. The company has not declared or paid any dividend during the year in contravention of the provisions of
section 123 of the Companies Act, 2013.
vi. Based on our examination, which included test checks, the Company has used accounting software systems
for maintaining its books of account for the financial year ended March 31, 2026 which have the feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software systems. Further, during the course of our audit we did not come
across any instance of the audit trail feature being tampered with and the audit trail has been preserved by
the Company as per the statutory requirements for record retention.
For G A M S & ASSOCIATES LLP
Chartered Accountants
FRN: 005104/ N500094
LLP REGN: AAJ-7552
CA PUSHPENDRA SURANA
Partner
M No: 504087
New Delhi
Date: 22nd May, 2026
UDIN: 26504087VMXPTS9530
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