Mukka Proteins Limited , a prominent player in the Indian protein industry, has recently come under scrutiny from tax authorities, facing significant financial implications. The company has disclosed receiving two tax notices with substantial penalties, totaling 78.20 million rupees.

Breakdown of Tax Notices

The tax notices, as reported by the company, are structured as follows:

1. First Notice: Carries a penalty of 34.49 million rupees
2. Second Notice: Involves a penalty of 43.68 million rupees

GST Intelligence Allegations

According to the company's regulatory filing with the stock exchanges, these notices stem from investigations by the Directorate General of Goods & Services Tax Intelligence (DGGI), Belagavi Zonal Unit. The DGGI has raised concerns over Mukka Proteins' Input Tax Credit (ITC) claims related to its Initial Public Offering (IPO) expenses.

Disputed Time Periods and Amounts

The DGGI's allegations cover two distinct periods:

The total amount, including tax, interest, and penalties, comes to 78,168,064 rupees, closely aligning with the reported 78.20 million rupees in penalties.

Company's Stance and Next Steps

Mukka Proteins has stated that it is currently examining the matter. The company's official statement indicates:

"Based on Company's assessment, the aforesaid demand is not maintainable and the Company is evaluating all options including filing an appeal against the said demand."

Furthermore, Mukka Proteins has expressed that it does not anticipate any significant impact on its financials, operations, or other activities as a result of these notices.

Regulatory Compliance

The company has duly informed the National Stock Exchange of India Limited and BSE Limited about these notices, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As the situation unfolds, stakeholders will be keenly watching how Mukka Proteins navigates these tax challenges and what implications, if any, they may have on the company's financial health and market position.

Mukka Proteins Limited is set to transform Bengaluru's urban waste management landscape with an innovative Black Soldier Fly (BSF) technology plant. The company has been officially empanelled as an Authorized Waste Processor by Bengaluru Solid Waste Management Limited (BSWML), marking a significant milestone in sustainable waste processing solutions.

Project Scope and Expansion Plans

The initial phase of the project will see Mukka Proteins managing 200-300 metric tonnes per day (MTPD) of wet waste from bulk generators in Bengaluru. The company has ambitious plans to scale up operations, aiming to process up to 1,000 tonnes per day (TPD) in the future. This large-scale initiative underscores Mukka Proteins' commitment to environmental sustainability and innovative waste management solutions.

Innovative BSF Technology

At the heart of this project is the Black Soldier Fly (BSF) technology, which will be used to convert city waste into high-value products. The process will yield insect protein for fish feed and pet food supplements, as well as organic compost. This approach not only addresses the pressing issue of waste management but also creates valuable by-products, exemplifying a circular economy model.

Recognition and Previous Success

The Bengaluru project builds on Mukka Proteins' existing success in waste management. The company's subsidiary, Ento Proteins Private Limited, operates a similar BSF facility in Mangaluru, which has been recognized as the largest unit at any municipal solid waste management site in India. Notably, this initiative recently received praise from Prime Minister Narendra Modi during his 'Mann Ki Baat' address, highlighting its effectiveness and innovation.

Strategic Business Expansion

In line with this new venture, Mukka Proteins has proposed amendments to its Memorandum of Association (MOA) to broaden its business scope. The proposed changes include:

1. Expansion into insect-based products development and marketing
2. Comprehensive waste management solutions
3. Manufacturing of agricultural inputs and soil conditioners

These amendments reflect the company's strategic pivot towards sustainable and innovative business practices in the waste management and agricultural sectors.

Management Commentary

K. Mohammed Haris, Managing Director & CEO of Mukka Proteins Limited, expressed enthusiasm about the project: "Securing the Bengaluru project is a landmark achievement for Mukka Proteins. It allows us to apply our proven BSF technology on a metropolitan scale, addressing critical urban waste challenges while creating a circular economy."

Conclusion

Mukka Proteins' foray into Bengaluru's waste management sector represents a significant step in addressing urban environmental challenges while creating value-added products. As the company scales up its operations and diversifies its business model, it is positioning itself as a key player in sustainable waste management and circular economy solutions in India.