Your Directors have pleasure in presenting the FOURTY-FIRST ANNUAL REPORT together with the
Audited Accounts of the Company for the year ended 31^st March 2025.

FINANCIAL HIGHLIGHTS (Amount in Lakhs)

SUMMARY OF OPERATIONS:

During the financial year under review the overall performance of the company has shown significant
improvement in its turnover when compared to previous financial year; the Overall turnover of the Company
is 13.72 lakhs as compared to last year turnover of Rs 6.57 Lakhs and the Net Profit is Rs. 0.78 Lakhs for
financial year 2024-25 when compared to a Net loss of Rs. (14.55) Lakhs during the previous year.

DIVIDEND DECLARATION:

Due to inadequate profits your Directors do not recommend any dividend for the Financial Year 2024-25.
CHANGE IN THE NATURE OF BUSINESS

There has been no change in the nature of business of the Company.

TRANSFER TO RESERVES:

The Company did not transfer any amount to the Reserves for the Financial Year ended March 31, 2025.
DETAILS OF SUBSIDIARIES, JOINT VENTURES, OR ASSOCIATE COMPANIES
The Company did not have any subsidiary or joint venture or associate company.

BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL

Mr. Y Mallikharjuna Rao has ceased to be Independent Director of the Company with effect from September
30, 2024, upon completion of his second term as Independent Director.

During the Financial Year , the Company has appointed Ms. Tulika Srivastav as Company Secretary and
Compliance Officer (A-71738) w.e.f 01-05-2024.

For Directors seeking appointment/re-appointment in the forth coming Annual General Meeting of the
Company; the particulars as required to be disclosed in accordance with Regulations 17 to 27 and para C,
D & E of Schedule V of SEBI (Listing Obligations & Disclosure Requirements) 2015, forms part of Corporate
Governance Report.

LISTING OF EQUITY SHARES :

The equity shares of the Company are listed on the trading platform of BSE Limited, a recognized stock
exchange having a nationwide trading terminal.

SHARE CAPITAL

The Authorized Share Capital of the Company as on March 31, 2025, is Rs.12,00,00,000/- (Rupees Twelve
Crores only) divided into 1,20,00,000 (One Crore Only) Equity Shares of Rs.10/- (Rupees Ten Only) each.

The Paid-up Share Capital of the Company as on March 31, 2025, is Rs. 11,40,31,100/-(Rupees Eleven
Crores Forty Lakhs Thirty One Thousand and One Hundred) divided into 1,14,03,110 (One Crore Fourteen
Lakhs Three Thousand One Hundred and Ten) equity shares of Rs.10/- (Rupees Ten Only) each fully paid
up.

During the year under review:

• The company has not bought back any of its securities.

• The Company has not issued any Sweat Equity Shares.

• No Bonus shares were issued during the year.

• Company has not issued any Preference shares/Debentures.

• Has not provided any Stock Option Scheme.

VARIATIONS IN NETWORTH:

The Standalone Net worth of the Company for the Financial Year ended March 31, 2025, is Rs. 430.00
Lakhs as compared to Rs. 429.22 Lakhs for the previous financial year ended March 31, 2024.

FIXED DEPOSITS

The Company has neither accepted nor renewed any deposits falling within the provisions of Section 73
and 76 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014 from
its member and public during the Financial Year.

NUMBER OF BOARD MEETINGS:

The Company has conducted 6 board meetings during the year on following dates with a gap not exceeding
120 days between any two meetings and All the Directors attended the all the meetings.

BOARD COMMITTEES AND THEIR COMPOSITION

We have in place all the Committees of the Board which are required to be constituted under the Companies
Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A detailed note
on the Board and its committees is provided under the Corporate Governance Report section in this Annual
Report.

The Present Composition of various Committees of the Board is hereunder:

Audit Committee

Mr. Venkata Srinivasan Kodakalla - Chairman

Mrs. Lakshmi Nekkanti Satyasri - Member

Mr. Jaya Mahadev Yerramsetti - Member

Nomination and Remuneration Committee

Mr. Venkata Srinivasan Kodakalla - Chairman

Mrs. Lakshmi Nekkanti Satyasri - Member

Mr. Jaya Mahadev Yerramsetti - Member

Stakeholders Relationship Committee

Mr. Venkata Srinivasan Kodakalla - Chairman

Mrs. Lakshmi Nekkanti Satyasri - Member

Mr. Jaya Mahadev Yerramsetti - Member

BOARD EVALUATION

The performance evaluation of all the Directors and that of the Board as a whole and its committees was
conducted based on the criteria and framework adopted by the board. The Nomination and Remuneration
Committee carried out independent evaluation of every Director's performance. The outcome of the board
evaluation for the FY 2024-25 was discussed by the said committee as well as by the Board.

The manner in which the formal annual evaluation has been made by the Board and other related details
are enumerated in the Corporate Governance Report, which is annexed to the Boards' Report. None of our
Independent Directors is due for reappointment.

STATEMENT OF DECLARATION BY INDEPENDENT DIRECTORS:

"Pursuant to the provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015, the Company
has received necessary declarations from all Independent Directors confirming that they meet the criteria
of independence as laid down under the said regulations. Further, in the opinion of the Board, all Independent
Directors fulfill the conditions specified in the Act and LODR Regulations and are independent of the
management."

POLICY ON APPOINTMENT, REMUNERATION OF DIRECTORS

The following policies have been uploaded in the website of the Company https://sourceindustriesindia.com/

1. Policy for selection of Directors and determining Directors Independence; and evaluation mechanism.

2. Remuneration Policy for Directors, Key managerial Personnel and other employees.

INTERNAL FINANCIAL CONTROL SYSTEMS

We have adopted policies and procedures which enables implementation of appropriate internal financial
controls across the organization and also ensures the orderly and efficient conduct of business, including
adherence to the Company's policies, the safeguarding of its assets, the prevention and detection of fraud,
error reporting mechanism, the accuracy and completeness of the accounting records, and timely preparation
of reliable financial disclosures. Internal Financial Controls are an integrated part of the Risk Management
Process, addressing financial and financial reporting risks. The Internal Financial Controls have been
documented, digitized and embedded in the business process.

Assurance on the effectiveness of the Internal Financial Controls is obtained through our management
reviews; control self-assessment, continuous monitoring by functional experts as well as testing of the
Internal Financial Control systems by the Internal Auditor during the course of audits. We believe that
these systems provide reasonable assurance that our Internal Financial Controls are commensurate with
the requirements of our organization.

POLICY ON PREVENTION, PROHIBITION AND REDRESSAL OF SEXUAL HARASSMENT AT WORK
PLACE:

We strongly support the rights of all our employees to work in harassment - free environment. The Company
has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at workplace as per
the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013 and the Rules made thereunder. The policy aims to provide protection to Employees at the
workplace and prevent and redress complaints of sexual harassment and for matters connected or incidental
thereto, with the objective of providing a safe working environment, where Employees feel secure. The
Company has also constituted an Internal Committee, known as Anti Sexual Harassment Committee to
address the concerns and complaints of sexual harassment and to recommend appropriate action.

We further confirm that during the year under review, there were no cases filed pursuant to the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

CORPORATE SOCIAL RESPONSIBILITY

Since our Company does not fall within any of the parameters specified under the provisions of Section
135 of the Companies Act, 2013 read with Rules made thereunder, reporting pursuant to Section 134(3)
(o) is Not Applicable.

DIRECTORS' RESPONSIBILITY STATEMENT:

Pursuant to Section 134 (5) of the Companies Act, 2013, your Directors confirm that to the best of their
knowledge and belief and according to the information and explanation obtained by them,

i. In the preparation of the annual accounts, the applicable accounting standards have been followed
along with proper explanation relating to material departures;

ii. Such accounting policies as mentioned in the notes to the financial statements have been selected
and applied consistently and judgments and estimates that are reasonable and prudent made so as
to give a true and fair view of the state of affairs of the Company at the end of the financial year 2024¬
25 and of the profit or loss of the Company for that period;

iii. Proper and sufficient care has been taken for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company
and for preventing and detecting fraud and other irregularities;

iv. The annual accounts for the year 2024- 25 have been prepared on a going concern basis.

v. That proper internal financial controls were in place and that the financial controls were adequate
and were operating effectively.

vi. That system to ensure compliance with the provisions of all applicable laws were in place and were
adequate and operating effectively.

REMUNERATION POLICY

The Board of Directors, on recommendation of the Nomination and Remuneration Committee framed a
Nomination and Remuneration policy for selection, appointment and remuneration of Directors, KMP and
Senior Management and matters covered u/s 178(3) of the Companies Act 2013.

VIGIL MECHANISM / WHISTLE BLOWER POLICY

Pursuant to the provisions of section 177 (9) and read with all other applicable provisions of the Companies
Act, 2013 and the Companies (meetings of board and its powers) Rules, 2014 (including any statutory
modification(s) or re-enactment thereof for the time being in force) and Regulation 22 of SEBI (Listing
Obligations & Disclosure Requirements) 2015, The Company has a Whistle Blower Policy framed to deal
with instance of fraud and mismanagement, if any in the Group. The details of the Policy are explained in
the Corporate Governance Report and also posted on the website of the Company.

RISK MANAGEMENT

Pursuant to the provisions of section 134 (3) (n) and read with all other applicable provisions of the Companies
Act, 2013 and the Companies (Accounts) Rules, 2014 (including any statutory modification(s) or re-enactment
thereof for the time being in force) and Regulation 21 of SEBI (Listing Obligations & Disclosure Requirements)
2015, the Risk management is not applicable to the Company.

STATUTORY AUDITORS

Pursuant to the provisions of Section 139(2) of the Companies Act, 2013, M/s. M N Rao & Associates,
Chartered Accountants, Hyderabad (Registration No. 005386S/S000195) appointed as Statutory Auditors
of the Company for a period 5 years from the conclusion of 38th Annual General Meeting till the conclusion
of 43rd Annual General Meeting at such remuneration as decided by the Board.

RELATED PARTY TRANSACTIONS

All related party transactions that were entered into during the financial year were on an arm's length basis
and were in the ordinary course of business. There are no materially significant related party transactions
made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons
which may have a potential conflict with the interest of the Company at large.

All related party transactions are placed before the Audit Committee as also the Board for approval. Prior
omnibus approval of the Audit Committee is obtained as per Regulation 23 of SEBI (Listing Obligations &
Disclosure Requirement) 2015, for the transactions which are of a foreseen and repetitive nature. The
Company has developed a Policy on Related Party Transactions for the purpose of identification and
monitoring of such transactions.

The Policy on Related Party Transactions as approved by the Board is uploaded on the website of the
Company. The particulars of contracts or arrangements with related parties referred to in sub-section (1) of
Section 188 of the Companies Act, 2013 is referred in Notes to Accounts.

INTERNAL AUDITOR:

The Board of Directors based on the recommendation of the Audit Committee has re-appointed M/s. VNS
Srinivasa Rao, Chartered Accountants, Hyderabad, as the Internal Auditors of your Company. The Internal
Auditors are submitting their reports on quarterly basis.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies
Act, 2013 are given in the notes to the Financial Statements.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE
COMPANY

"During the year under review, a Share Purchase Agreement was executed between the existing promoters
and the acquirers, thereby triggering an open offer in accordance with the SEBI (Substantial Acquisition of
Shares and Takeovers) Regulations, 2011.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND
OUTGO:

The information on conservation of energy, technology absorption and foreign exchange earnings and
outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies
(Accounts) Rules, 2014, is annexed herewith as 'Annexure A' to this report.

MANAGEMENT DISCUSSION & ANALYSIS

Pursuant to the provision of Schedule V of SEBI (Listing Obligations & Disclosure Requirements) 2015, a
report on Management Discussion & Analysis is set out as an "Annexure B".

SECRETARIAL AUDIT

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. PS Rao &
Associates, a firm of Company Secretaries in Practice to undertake the Secretarial Audit of the Company.
The Secretarial Audit Report is annexed herewith as "Annexure C" to this report.

CORPORATE GOVERNANCE:

The Company has been making every endeavor to bring more transparency in the conduct of business. As
per the requirements of Listing Agreement with the Stock Exchanges, a compliance report on Corporate
Governance for the year 2024-2025 and a certificate from the Secretarial Auditors of the Company are
furnished as a part of this Annual Report "Annexure D".

ANNUAL RETURN

In accordance with Section 134 (3) (a) of the Companies Act, 2013, a copy of Annual Return in the prescribed
format i.e. Form MGT-7 is placed on the website of the Company and may be accessed at Link:
www.sourceindustriesindia.com

PARTICULARS OF EMPLOYEES:

The information required pursuant to Section 197 read with Rule 5 (1) of The Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014 and Rule 5 (2) Of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014, No employee of your company is in receipt of
remuneration exceeding Rs. 8,50,000 per month or Rs. 1,02,00,000 per annum during the Financial Year.

COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD AND ANNUAL GENERAL MEETINGS:

During the year under review, the Company has complied with Secretarial Standards issued by the Institute
of Company Secretaries of India on Board Meetings and Annual General Meetings.

LISTING FEE:

Your Company's shares are presently listed and traded on the BSE Limited; Your Company is regular in
paying the listing fee to the BSE Limited.

DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND
BANKRUPTCY CODE, 2016 (31 OF 2016) DURING THE YEAR ALONG WITH THEIR STATUS AS AT
THE END OF THE FINANCIAL YEAR:

No application was made or any proceedings pending under the IBC, 2016 during the year ended on 31st
March, 2025.

DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT THE TIME OF ONE¬
TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR
FINANCIAL INSTITUTIONS ALONG WITH THE REASONS THEREOF:

Not Applicable

ACKNOWLEDGEMENTS:

Your Directors place on record their appreciation and gratitude for the continuous support and assistance
extended by all the Statutory Authorities. The Board also extends its heartfelt gratitude to the Creditors and
Shareholders for the confidence reposed by them in the Company. Your Directors also place on record
their sincere appreciation for the continued contributions made by the employees at all levels.

By order of the Board
For Source Industries (India) Limited

Sd/- Sd/-

Naraharisetty Mohan Krishna Sudhir Reddy Posireddy

Wholetime Director Chairman and Managing Director

(DIN: 07126524) (DIN: 02813098)

Place: Hyderabad
Date : 28.07.2025