Mukka Proteins Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
MUKKA · price
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Awaiting price reaction for this filing.
Mukka Proteins' board, on May 15, 2025, approved issuing corporate guarantees for two entities. First, a guarantee of up to Rs. 6.03 crores to HDFC Bank to secure an overdraft facility availed by its Oman-based subsidiary, Ocean Aquatic Proteins LLC. Second, a guarantee of up to Rs. 10 crores to Vivriti Capital to secure a working capital loan (invoice discounting) facility for Shipwaves Online Limited, a company in which Mukka's directors are interested. Both transactions are described as being done at arm's length. The guarantee agreements are yet to be executed. Total contingent liability exposure comes to around Rs. 16.03 crores.
These guarantees create contingent liabilities of up to ~Rs. 16 crore on Mukka Proteins' books, exposing shareholders to potential risk if its subsidiary or related party defaults. The move also raises some governance concern as it involves a related-party transaction, though the company has stated it is at arm's length.