₹1.41 Billion Tax Notice For Mukka Proteins—Company Assures No Material Impact

Mukka Proteins Ltd, a key player in India’s protein industry, recently disclosed receiving a substantial tax demand notice amounting to ₹1.41 billion (141 crore rupees). Despite the sizable claim, the company maintains that this will not significantly impact its financial position or operational capabilities. This announcement comes amid ongoing tax scrutiny related to litigation over Input Tax Credit (ITC) claims and other fiscal assessments.

 

Key Highlights Of The Tax Demand Notice

 

Overview Of Tax Demand

The total tax demand notice for ₹1.41 billion includes principal tax amounts and associated penalties. The notice arises from investigations by tax authorities questioning certain tax credits claimed by the company.

 

Timeline And Tax Periods Covered

The disputed tax demand spans multiple financial years, particularly focusing on FY 2021-22 to 2024-25. This period includes scrutiny of claimed Input Tax Credits and other indirect tax matters.

 

Company’s Financial Resilience

Mukka Proteins reports a strong equity base with shareholders’ funds exceeding ₹404 crore and total assets valued at approximately ₹974 crore as of March 2025. Solid cash flows and operational performance underpin the company’s confidence in absorbing the demand without distress.

 

Previous Tax Notices And Appeals

This is part of a series of tax demands faced recently by Mukka Proteins, with the company actively pursuing appeals and legal remedies to contest certain claims. Recent tribunal orders have resulted in partial relief and ongoing hearings.

 

Statement From The Company

Mukka Proteins stated that it does not anticipate a material impact on its financial or operational structure from the tax demand. The management assures stakeholders of transparent handling and proactive dispute resolution.

 

Understanding The Tax Scrutiny Context

The tax notice pertains to indirect tax liabilities, including Goods and Services Tax (GST) related to Input Tax Credit claims.

 

Such scrutiny is common for companies expanding aggressively or with complex tax structures.

 

Ongoing compliance and legal challenges reflect the company’s evolving tax risk management environment.

 

Financial Snapshot Of Mukka Proteins

Net sales for the fiscal year ending March 2025 stood at around ₹381.57 crore, marking a growth of approximately 48.65% year-over-year.

 

The company reported steady operating profit margins and increasing reserves over recent years, supporting its operational strength amid tax challenges.

 

Current liabilities and borrowings are judiciously managed, with a healthy liquidity position underscored by cash reserves.

 

Market And Investor Implications

While the tax demand is substantial, experts note Mukka Proteins’ diversified revenue streams and robust financial health mitigate immediate risks. Investors are advised to monitor the progress of tax appeals and overall regulatory environment, which could influence market perceptions in coming quarters.

 

Conclusion

Mukka Proteins Ltd’s disclosure of a ₹1.41 billion tax demand marks a significant development in its financial narrative but does not overshadow the company’s strong fundamentals and growth trajectory. With resolute management action focused on dispute resolution and sound financial stewardship, Mukka Proteins is well-positioned to navigate this challenge.

 

The company continues to emphasize transparency and proactive communication with shareholders, bolstering confidence in its long-term value creation strategy.

 

Sources: Mukka Proteins official disclosures, Moneycontrol, Tijori Finance, ScanX Trade, Company filings.