Mukesh Babu Financial Services Limited has released its Annual Report for the financial year 2025-26, recommending a dividend of ₹1.20 per equity share. The company has scheduled its 41st Annual General Meeting (AGM) for August 12, 2026, at 4.00 p.m. through video conferencing to seek shareholder approval for the dividend and the adoption of audited financial statements.

The Board of Directors, at its meeting held on May 12, 2026, recommended the dividend payout for the financial year ended March 31, 2026. If approved, the dividend will be paid to members whose names appear on the register of members as of the cutoff date, August 5, 2026. The payment is scheduled to be made within 30 days from the date of the AGM. The company has mandated that dividends will be processed only in electronic mode, discontinuing payments via warrants or cheques.

Related Party Transactions

Shareholders will vote on an ordinary resolution to approve material related party transactions (RPTs). The Audit Committee and the Board of Directors have approved the proposed transactions with 13 related parties, including entities such as Ashtavinayak Infra Tech Pvt. Ltd., Istaa Fashions Pvt. Ltd., and Mukesh Babu Securities Limited. The proposed transactions involve loans and advances, with amounts totaling ₹1,50,000 thousand for each related party. The proposed interest rate to be charged is 10% per annum, with a tenure of one year or on demand.

The Audit Committee reviewed certificates from the Managing Director and CFO confirming that the terms are in the company's interest. Certain borrowing and lending rates have been redacted from the disclosure as they constitute commercially sensitive information. The Board has affirmed that the disclosure provides all material information necessary for shareholders to make an informed decision.

Remuneration for Managing Director

A special resolution seeks shareholder approval for the remuneration of Mr. Mukesh Babu, Managing Director, for the remaining two years of his term from May 24, 2026, to May 23, 2028. The remuneration is proposed to be paid as per the terms approved at the 38th AGM held on August 4, 2023. The resolution includes provisions for paying minimum remuneration in accordance with Schedule V of the Companies Act, 2013, should the company have no profits or inadequate profits in a financial year.

The Board has delegated the power to vary the remuneration, including commission and perquisites, within prescribed limits to the Nomination and Remuneration Committee. The company has stated that it has not committed any default to secured creditors or public financial institutions, and thus prior approval from lenders is not required for the proposed remuneration.

Key AGM Details

Mukesh Babu Financial Services Ltd has closed its trading window for designated persons effective July 1, 2026. The restriction will remain in force until the company declares its financial results for the quarter ended June 30, 2026 (Q1FY27). This proactive measure is designed to prevent insider trading and ensure compliance with regulatory standards during the sensitive period encompassing the closure of accounts and the finalization of financial statements.

The closure of the trading window is a standard regulatory requirement intended to maintain market integrity. It prohibits designated persons, including directors and key management personnel, from dealing in the company's securities while they are in possession of unpublished price-sensitive information (UPSI). The window will reopen only after the financial results are officially made public.

Compliance and Regulatory Framework

The decision aligns with the company's adherence to the Securities and Exchange Board of India (SEBI) (Prohibition of Insider Trading) Regulations, 2015. These regulations mandate that trading windows be shut during periods when financial results are under preparation. By enforcing this blackout period, Mukesh Babu Financial Services Ltd aims to mitigate the risk of inadvertent disclosure of material non-public information.

Key Dates