MPDL Limited is seeking shareholder approval via postal ballot for the remuneration of its Whole Time Director, Mr. Santosh Kumar Jha. This is due to inadequate profits in FY 2025-26, where the company reported a net loss of ₹6.50 crore. Management expects to improve cash flow within two years by monetizing inventory.
MPDL Seeks Shareholder Nod for Director Remuneration Amidst FY26 Net Loss
MPDL Limited is commencing a postal ballot to obtain member approval for the remuneration of its Whole Time Director, Mr. Santosh Kumar Jha. This proposal is being termed "minimum remuneration" due to the company's inadequate profits in the financial year 2025-26.
What just happened
The company has initiated a postal ballot process, with e-voting from June 30, 2026, to July 29, 2026. The approval is sought for the remuneration of Mr. Santosh Kumar Jha, classified as minimum remuneration due to insufficient profits in the previous financial year.
Why this matters
This governance action is crucial for shareholders as it addresses executive compensation during a period of financial loss. The company reported a net loss after tax of ₹6.50 crore for FY 2025-26. Shareholder approval is a procedural requirement for such remuneration under the Companies Act, 2013.
The backstory
MPDL Limited is engaged in the construction of commercial projects and maintenance. The reported net loss of ₹6.50 crore in FY 2025-26, against total income of ₹21.45 crore, is attributed by management to a timing lag between project expenditures and revenue realization. The company's effective capital stood at ₹58.36 crore as of March 31, 2026.
What changes now
Shareholders will vote on the proposed remuneration. Management projects a turnaround within two years, expecting to unlock value from built-up inventory, which should improve cash flow and cover deficits. The effective date for the remuneration is set for February 24, 2026.
Risks to watch
The primary risk lies in the company's ability to execute its plan to monetize existing inventory within the projected two-year timeframe. Failure to do so could prolong the financial strain and impact future operational stability. The total expenditure in FY 2025-26 was ₹30.13 crore, exceeding the total income.
Peer comparison
(No direct peer comparison data available in the filing).
Context metrics (time-bound)
For FY 2025-26, MPDL Limited reported revenue from operations of ₹20.32 crore and a net loss after tax of ₹6.50 crore.
What to track next
Investors should closely monitor the outcome of the postal ballot and the company's progress in realizing its inventory value and improving its cash flow position over the next two years.
Reader Takeaway: Management aims to monetize inventory to achieve positive cash flow within two years, balancing current financial losses.