The present invention relates to a mutant fungal strain of Penicillium funiculosum ‘MRJ-16’ characterized by the ability to produce high titer of enzyme mixture comprising FPase, CMCase, Cellobiase, β-glucosidase, endoglucanase, α-L arabinofuranosidase, β-xylosidase, xylanase, pectinase, cellobiohydrase and oxidases and produce enzymes in the presence of a catabolite repressor molecule like glucose and/or xylose. The titer of enzyme mixture produced using mutant fungal strain MRJ-16 is at least two fold higher than naive Penicillium funiculosum strain NCIM 1228, when used in a fermentation process. The mutant strain ‘MRJ-16’ with high hydrolytic activity and catabolite derepressed character is having application in the method of degrading or saccharifying biomass to produce valuable products for example-bioethanol.