Nature of Security and Terms of Repayment
I. Security Particulars of HDFC Bank Pre-Shipment Finance, Cash Credit Facility, Post Shipment Finance, Working Capital Demand Loan and Term Loan (Facility limit of Rs. 2600 millions.)
a. Primarily secured by:
Hypothecation of all present and future current assets, movable fixed assets of the company. The charge to be shared on 1st
pari-passu basis with Axis Bank.
b. Collaterally secured by :
Equitable mortgage on pari-passu basis of various residential properties, industrial plots comprising of factory buildings
and other commercial properties details of which are as follows:-
Residential Properties: First Pari Passu charge on following Properties:-
1. Property bearing Door No. 19-10-629, Umaya gardens, T Sy. No. 225 -1A and R Sy Nos: 350 - 1A, 86 Attavar Village, B R Karkera Road, Pandeshwar, Mangalore Taluk, Dakshina Kannada District - 575001
2. Property bearing Door No. 19-10-623/11, Umaya gardens, Block A, T Sy. No. 225 -2B and R Sy Nos: 350 -2B & 350-2B, 85 Attavar Village, B R karkera Road, Pandeshwar, Mangalore Taluk, Dakshina Kannada, District - 575001
3. Property bearing, Umaya gardens, Block B, T Sy. No. 225-2B & 225 -2B and R Sy Nos : 350 - 2B, 85 Attavar Village, B R Karkera Road, Pandeshwar, Mangalore Taluk, Dakshina Kannada District- 575001
4. Property bearing Door No. 3 - 464/3, Sy Nos: 94 - 1P of Munnur Village & 46-2(P) of 95 Permannur Village, 3rd Cross Santoshnagar, Kuthar, Mangalore Taluk, Dakshina Kannada, District - 575017
Industrial Properties: First Pari Passu charge on following Properties:-
1. Property bearing R Sy No: 172 - 2 & T Sy Nos : 14 / 2(D), Door Nos : 18-2-16/4(2), 16/4(3) and 16/4(5) Mukka Sea Food Industries Private Limited Building”, Attavar Village, Milrages Ward, Mangalore Taluk, Dakshina Kannada -575001
2. Property bearing Plot No: 140C, Door No: 6- 82, Sy No: 85, Baikampady Village, Baikampady Industrial Estate, Mangalore, Dakshina Kannada - 575011
3. Property bearing No 49, R Sy No: 12-3A, 12-3B, Door Nos: 14-161, 162, 163 & 164 Surathkal Village, Mangalore taluk, Dakshina Kannada - 574146 and Property bearing, R Sy No 203/5, Door Nos: 14-158, 159 and 160 Surathkal Village, Mangalore taluk, Dakshina Kannada - 574146.
4. Property bearing Plot No: 139 A, Sy No: 85 & 124, Baikampady Village, Baikampady Industrial Estate, Mangalore, Dakshina kannada - 575011.
5. Property bearing Plot No: 139 /A2, Door No: 6-83 & 6-84, R Sy No: 124/P, Baikampady Village, Baikampady Industrial Estate, Mangalore, Dakshina kannada - 575011.
Industrial Property: Exclusive charge on EM on land and building admeasuring 3.65 acres situated at SNo.84p1,84p2,
100p1 at Kadiyali Tq village, Rajula Dist, Amrelli
-Personal guarantees following Directors / Shareholders of the company:-
(i). Mr. K. Abdul Razak (ii) Mr. K. Mohammed Haris (iii) Mr. K. Mohammed Arif (iv) Mr. K Mohammed Althaf (v) Mrs. Umaiyya Banu
- Corporate Guarantee of M/s Haris Marine Products Pvt Ltd
-10% Cash margin (only for SBLC Limit) and 10% margin on order book for Pre-shipment finance.
-25% margin for Cash Credit / WCDL
Terms of Repayment of Term Loan of Rs. 11.01 millions availed from HDFC Bank Limited
The loan was repayable in 36 equal monthly instalments of ?0.31 million each, commencing from 19 October 2023 and ending on 18 September 2026.
During the year, the aforesaid term loan has been fully repaid.
II. Security particulars of SBLC for funding to subsidiary Ocean Aquatic Proteins LLC at Oman through Gift City from HDFC Bank ( facility limit of Rs. 99.42 Millions.)
The facility has been sanctioned in 2020 for 6 years. The Terms of Securities of the factility is as follows:-
i. Exclusive charge of Commercial Property Property bearing Door No: 17-3- 124/1, 17-3-124/2, 17-3-124/3, 17-3-124/4 and 17-3-124/5 with R Sy No: 1/2A1B & 1/1A and T. S, No. 731/2A1B and 731/1A, Jappinamogaru Village, Falnir Ward, Father Mulleurs Road, Valencia, Mangalore 575002
ii. 10% cash margin for SBLC limit to be used for funding of Oman Subsidiary from Gift City.
iii. Personal guarantees following:-
(i). Mr. K. Abdul Razak (ii) Mr. K. Mohammed Haris (iii) Mr. K. Mohammed Arif (iv) Mr. K Mohammed Althaf (v) Mrs. Umaiyya Banu
III. Security particulars of State Bank of India (SBI) Pre-Shipment Finance, Cash Credit Facility (Facility Limit of Rs 1200 Millions)
a. Primarily secured by:
Hypothecation & 1st pari-passu Charge of Stock, Receivables and Other Current Assets of the company.
b. Collaterally secured by :
-'EQM of Industrial land situated at Sy No. 18-P, Plot No 423A measuring 4613 Sq. Mtrs and shed with door no 6-265 measuring 2707.47 Sq Mtrs in Bykampady Industrial Area, Mangaluru in the name of M/s Mukka Proteins Ltd.
-'EQM of industrial land situated at Sy No. 85 & 124, Plot No 139A measuring 1618.72 Sq. Mtrs and shed with door no BYK-6-84 in Bykampady Industrial Area, Mangaluru in the name of Mr. Mohammed Haris, Mr. Mohammed Althaf and Mr. Mohammad Arif
-Personal guarantees following Directors / Shareholders of the company:-
(i). Mr. K. Abdul Razak (ii) Mr. K. Mohammed Haris (iii) Mr. K. Mohammed Arif (iv) Mr. K Mohammed Althaf (v) Mrs. Umaiyya Banu
IV. Security Particulars of Axis Bank Cash Credit Facility, Working Capital Demand Loan, Export Packing Credit, Pre Shipment Finance, Loan Equivent Risk and Term Loan (Facility limit of Rs. 750 millions.)a. Primarily secured by:
A first pari passu charge, ranking equally with HDFC Bank Limited, by way of hypothecation over all present and future current assets of the Company, together with all present unencumbered movable fixed assets; Further, a first pari passu charge, ranking equally with HDFC Bank Limited, by way of hypothecation over all other movable fixed assets of the Company.
An exclusive first charge by way of hypothecation over the plant, machinery and equipment of the new Bangalore plant, financed out of the Axis Bank Term Loan.
b. Collaterally secured by :
Collateral security in the form of a Fixed Deposit amounting to ?10.00 Crores, created against the existing working capital limits aggregating to ?50.00 Crores, with an exclusive first lien marked in favour of Axis Bank Limited.
Cash collateral equivalent to 15% of the Term Loan facility, to be maintained by way of an exclusive lien in favour of the lender over the designated deposit.
-Personal guarantees following Directors / Shareholders of the company:-
(i). Mr. Abdul Razak (ii) Mr. K. Mohammed Haris (iii) Mr. K. Mohammed Arif (iv) Mr. K Mohammed Althaf (v) Mrs. Umaiyya Banu
c. Terms of Repayment of Term Loan of Rs. 150 millions availed from Axis Bank Limited
The Term Loan shall be repaid in 72 (seventy-two) equal monthly instalments (EMIs) of ?2.083 million each, commencing from September 2025 and concluding in August 2031.
V. Vehicle Loans from HDFC Bank
a. Vehicle Loan I - The loan is secured against hypothecation of Motor Vehicle against which loan is availed. The Loan is repayable in 60 EMI of ? 0.07 millions each starting from April 2021 and ends on March 2026.
b. Vehicle Loan II - The loan is secured against hypothecation of Motor Vehicle against which loan is availed. The Loan is repayable in 48 EMI of ? 0.06 millions each starting from March 2022 and ends on February 2026.
Both vehicle loans availed from HDFC Bank Limited have been fully repaid during the year, and accordingly, no amount remains outstanding as at March 31, 2026.
VI. Security Particulars of Bank of Baroda - Pre-Shipment and Post-Shipment Working Capital & Trade Finance Facilities (PCFC/PC - 180 Days; FBP/FBD/FCBP/FCBD - 90 Days), Cash Credit/Working Capital Demand Loan and Forward Contract Facilities (Aggregate Sanctioned Limit: ?500 Million)
a. Primarily secured by
A first pari passu charge by way of hypothecation over the entire current assets of the Company, both present and future, ranking equally with other working capital lenders.
b. Collaterally secured by
Collateral security by way of Fixed Deposit(s) equivalent to 25% of the sanctioned facility limit, with an appropriate lien marked in favour of the lender.
- An Irrevocable and Unconditional Personal Guarantee Personal guarantees following Directors / Shareholders of the company:- (i). Mr. Abdul Razak (ii) Mr. K. Mohammed Haris (iii) Mr. K. Mohammed Arif (iv) Mr. K Mohammed Althaf (v) Mrs. Umaiyya Banu
Note 34 : Segment reporting
The Company publishes this financial statement along with the consolidated financial statements. In accordance with Ind AS 108, Operating Segments, the Company has disclosed the segment information in the consolidated financial statements.
Note 35 :Corporate Guarantees
With respect to Corporate Guarantees, the management has determined the fair value of such guarantee contracts as ‘Nil’ as the group company is not being benefited significantly from such guarantees.
Impact of New Labour Codes
Effective 21 November 2025, the Government of India has consolidated 29 existing labour laws into a unified framework comprising four Labour Codes collectively referred to as the 'New Labour Codes'. The Group has recognised the estimated incremental impact of INR 0.50 crore in the consolidated financial results for the quarter ended 31 December 2025 and year ended 31 March 2026, primarily due to change in the definition of "wages". The Group continues to monitor the finalisation of Central and State Rules, as well as Government clarifications on aspects of Labour Codes and will record for adjustment, if any, based on these developments,
Fair Value Hierarchy
The carrying amount of the current financial assets and current financial liabilities are considered to be same as their fair values, due to their short term nature. In absence of specified maturity period, the carrying amount of the non-current financial assets and non-current financial liabilities such as security deposits, are considered to be same as their fair values. With respect to Corporate Guarantees, the management has determined the fair value of such guarantee contracts as ‘Nil’ as the subsidiary company is not being benefited significantly from such guarantees.
Note 41 Financial Risk Management
The Company has exposure to the following risks from its use of financial instruments :
> Credit risk
> Liquidity Risk
> Market Risk
The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risk and adherence to limits. Risk management systems are reviewed periodicially to reflect changes in market conditions and the Company’s activities.
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company has medium exposure to said market risk.
(I) Interest Risk
The Company’s main interest rate risk arises from long term and short term borrowings with variable rates, which exposes the Company to cash flow interest rate risk.
The exposure of the Company to interest rate changes at the end of the reporting period are as follows:
Liquidity Risk :
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
Credit Risk :
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company's trade receivables, and other activities that are in nature of leases.
Note 42 : Capital Management
The company's capital comprises equity share capital, retained earnings and other equity attributable to equity holders. The primary objective of company's capital management is to maximise shareholder's value. The company manages its capital and makes adjustment to it in light of the changes in economic and market conditions.
The Company monitors capital using gearing ratio, which is net debt divided by total capital plus net debt. Net Debts comprises of long term and short term borrowings less cash and bank balances. Equity includes Equity share capital and reserves that are managed as capital. The gearing at the end of the reporting period was as follows:
Note 45 : Additional Regulatory Information
b. There are no proceedings that have been initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended from time to time) (earlier Benami Transactions (Prohibition) Act, 1988) and the rules made thereunder.
c. The Company has not been declared wilful defaulter by any bank or financial institution or other lender.e. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, and there are no companies beyond the specified layers.
f. Utilisation of Borrowed funds and share premium;
A. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall
(i) 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
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
The Company has not received any fund from any person(s) or entity(ies), including foreign entities (“Funding Party”) with the understanding (whether recorded in writing or otherwise) that the company shall
(i) 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
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
g. During the year, the company has been sanctioned working capital limits in excess of ? five crores in aggregate from banks on the basis of security of current assets of the entities. The quarterly returns/statements filed by these entities with such banks were not in agreement with the unaudited books of account of these entities on account of timing difference in reporting to the banks and routine bookclosure process and the details of which are as follows:
h. Undisclosed Income : The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income-tax Act, 1961). Further, there was no previously unrecorded income and no additional assets were required to be recorded in the books of account during the year.
i. Details of Crypto Currency or Virtual Currency : The Company has neither traded nor invested in Crypto currency or Virtual Currency during the financial year ended March 31, 2026. Further, the Company has also not received any deposits or advances from any person for the purpose of trading or investing in Crypto Currency or Virtual Currency.
46 Events after the reporting period
The Company approved strategic investments in the partnership firm “MPL FC HRC JV” and the proposed overseas entity “Lanka Bio Proteins Private Limited”, Sri Lanka. The Company proposes to make a capital contribution of ?2.55 lakh representing 51% profit-sharing ratio in MPL FC HRC JV and invest up to ?2.50 crore in Lanka Bio Proteins Private Limited representing 49% shareholding. These investments are expected to support the Company’s business expansion, strengthen operational synergies, and enhance its presence in domestic and international markets.
47 Previous periods’ figures have been reworked / restated / regrouped to the extent practicable, whenever necessary.
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