Source Natural Foods & Herbal Supplements Ltd Directors Report

To,

The Members,

Source Natural Foods and Herbal Supplements Limited Bangalore

The Board of Directors is pleased to submit the report of the business and operations of your Company along with the audited financial statements, for the financial year ended March 31, 2026. The Financial Highlights for the year under review are given below:

1. FINANCIAL RESULTS:

(Ks. in Lakhs)

Particulars	31.03.2026	31.03.2025
Total revenue	7,043.25	4,500.14
Profit/ (Loss) before exceptional and extraordinary items and tax	492.30	358.32
Exceptional Items	0.00	0.00
Profit before extraordinary items and tax	492.30	358.32
Extraordinary Items	0.00	0.00
Tax expenses	152.02	67.92
Deferred Tax	0.33	0.00
Net Proflt/(Loss) carried to Balance Sheet	339.94	290.40
Earnings Per Share (Basic/ Diluted)	5.28	4.51

2. PERFORMANCE REVIEW:

The Total revenue of the Company for the year ended 31^st March 2026 was Rs. 7,043.25 Lakhs, as compared to the total revenue in the corresponding previous year of Rs. 4,500.14 Lakhs.

The total expenses for the year ended 31st March 2026 have increased to Rs. 6,550.95 lakhs compared to the total expenses in the corresponding previous year of Rs. 4,141.82 lakhs.

Company Performance and Valuation

> Growth Metrics: The Company has experienced impressive growth with a topline of approximately 57% over the last year. The Company has recorded an increase in Profit before Tax (PBT) during the year, registering 37% growth. Your directors are confident of continuous growth in the coming years in terms of revenue and profitability.

> Financial Strength: Strong financial fundamentals are evidenced by peer-average net margins and ROE percentages. The intrinsic value of the company exceeds its current market capitalization, suggesting potential for further growth.

New Product Launch

> Product Introduction: The company has planned to expand its product portfolio with new launches in Ayurvedic Medicines and Foods Supplements segments. The Company has been actively exploring and expanding its portfolios in green energy vertical. The Management is also focusing on diversification into wastewater and solid waste management during the year.

Marketing Strategy

> Communication:

a. Pull Mechanism: Leverages reputation and cumulative advantages to attract customers rather than traditional push methods.

b. Direct Marketing: Utilizes personal presentations, product demonstrations, and participation in industry events to build and maintain relationships.

> Customer Engagement & Retention:

a. Acquisition Criteria: Focuses on clients creditworthiness, market standing, and longterm relationship potential.

b. Ongoing Engagement: Regular interaction to align with customer preferences and market trends, aiming for high customer satisfaction and delight.

> Target Audience Segmentation:

a. National Chains: Company is engaging with some other channels for products to be on their shelfs in newer markets. Formal presentations and demonstrations are being made.

b. Local Chains: Informal approaches with physical stock presentations and product benefits explanations.

c. Family or standalone Stores: Personalized engagement with high retention.

> Distributors & Exporters: Tailored strategies for supply and export are being worked upon continuously as per market needs.

> Industry Challenges and Future Outlook

a. Labor Issues: Shortage of skilled labor and resistance to automation due to traditional methods.

b. Automation: The shift towards high-end automation is ongoing but slow, with a need for systematic training for new technologies.

3. FUTURE PROSPECTS & OUTLOOK:

The future looks to be very interesting for the dietary supplements market. Ayurveda and herbal are increasingly becoming "back to roots" answers to modern problems. Your company vision is to make the Ayurveda reach across the globe by focusing on selling Ayurveda-based and immunity-boosting products. The requirements of consumers have shifted to healthy foods and beverages options.

Your Company intends to focus on increasing their portfolio of immunity-boosting products and will continue to contribute towards the growth of Ayurveda and Herbal Supplements and at the same time enhance shareholders wealth by accelerated performance.

During the year, the Company has strategically diversified into the generation of green and clean energy, marking a significant step towards sustainable growth and environmental responsibility.

This initiative aligns with our long-term vision of contributing to Indias renewable energy transition while creating value for all stakeholders. The Company has commenced activities in renewable energy generation with a focus on harnessing sustainable sources, thereby reducing carbon footprint and promoting cleaner energy alternatives.

Source Natural is all geared up for 2026-27 with new product lines and new business verticals. The focus will be on offering wellness products enriched with Ayurvedic herbs and exploring new business opportunities in green energy and waste management fields.

4. RESEARCH AND DEVELOPMENT:

Ayurveda refers to natural ancient healthcare system and science of medicine. The Indian ayurvedic products market is primarily driven by the increasing preference for organic and natural products among the masses. In line with this, the rising awareness regarding the harmful effects of chemicals utilized in the formulation of various skincare and personal care products and the growing health- consciousness among individuals are creating a positive market outlook. Moreover, the penetration of high-speed internet and the rising popularity of social media among the masses are further providing a boost to the demand for ayurvedic products in India. The research methodology should be planned and adopted accordingly.

5. DIVIDEND:

In order to conserve the available resources for future growth, your directors do not recommend any dividend for the financial year ended March 31, 2026

6. AMOUNT TRANSFERRED TO RESERVES:

Your directors do not propose to transfer any amount to any reserves. The entire profit will be retained as surplus.

7. CHANGE IN THE NATURE OF BUSINESS:

As per the requirements Rule 8(5)(ii) of the Companies (Accounts) Rules, 2014, Company declares that there is no significant change in the nature of business of the Company during the financial year under review, except for diversification of its core businesses into green energy sector.

8. EVENTS SUBSEQUENT TO THE DATE OF FINANCIAL STATEMENTS:

As per the requirements Section 134(3)(I) of the Companies Act, 2013, Company declares that, there were no significant material changes and commitments affecting financial position of the Company between 31st March, 2026 and the date of this Report.

9. SHARE CAPITAL:

The Authorised Share Capital of your Company is Rs.9,00,00,000/- divided into 90,00,000 Equity Shares of Rs. 10/- each. The Paid-up Capital is Rs. 6,43,69,310/- divided into 64,36,931 Equity Shares of Rs. 10/- each.

During the year under review, there was no change in the Share Capital of the Company.

a. Provision of money by company for purchase of its own shares by employees or by trustees for the benefit of employees:

The Company has not made any provision of money for purchase of its own shares by employees or by trustees for the benefit of employees as per Rule 16(4) of Companies (Share capital and Debentures) Rules, 2014.

b. Issue of Sweat Equity Shares:

The Company has not issued any sweat equity share during the financial year, in accordance with the provisions of Section 54 of Companies Act, 2013 read with Rule 8 of the Companies (Share Capital and Debentures) Rules, 2014.

c. Issue of Equity Shares with Differential Rights:

The Company has not issued any equity shares with differential voting rights during the financial year, as per Rule 4(4) of Companies (Share capital and Debentures) Rules, 2014.

d. Issue of Employee Stock Option:

The Company has not issued any employee stock option during the financial year, as per Rule 12 of Companies (Share Capital and Debentures) Rules, 2014.

10. DIRECTORS AND KEY MANAGERIAL PERSONNEL:

KEY MANAGERIAL PERSONNEL:

In compliance with Section 203 of the Companies Act, 2013, the following are the Key managerial Personnel of the Company:

Mr. Arvind Varchaswi N. - Managing Director

Mr. Tejagna K Katpitia - Whole-Time Director

*Mr. R. Ramachandra - Chief Financial Officer

Mr. Yash Jain - Company Secretary & Compliance Officer

*Mr. R. Ramachandra has resigned with effect from May 31,2026

A. RETIREMENT BY ROTATION

• Pursuant to the provisions of Section 152 of the Companies Act, 2013 and the Articles of Association of the Company, Mr. Tejagna K Katpitia and Mr. Sturle Harald Pedersen retire by rotation at the ensuing Annual General Meeting and being eligible, offer

themselves for re-appointment. Your directors recommend their re-appointment.

B. APPOINTMENT

During the year under review, following Directors and KMP were appointed:

• Mr. N Arvind Varchaswi was reappointed as Managing Director.

• Mrs. Darshna Patel was appointed as an Independent Director with effect from September 25,2025.

C. CESSATION

During the year under review, Mr. C L Rathi retired as an Independent Director with effect from September 28, 2025, upon completion of his term.

D. POLICY ON DIRECTORS APPOINTMENT, ANNUAL PERFOMANCE EVALUATION OF THE BOARD AND POLICY ON REMUNERATION:

Pursuant to the requirements under Section 134(3)(e) and Section 178(3) of the Companies Act, 2013, the Board adopted the policy on appointment of Board members including criteria for determining qualification, positive attributes, independence of a director and the policy on remuneration of Directors and KMP.

In a separate meeting of Independent Directors, performance of non-independent directors, performance of the Board as a whole and performance of the Chairman was evaluated, taking into account the views of Executive directors and non-executive directors. The same was discussed in the Board meeting that followed, at which the performance of the Board, its Committees and individual directors were discussed.

E. DECLARATION OF INDEPENDENT DIRECTORS:

In accordance with Section 149(7) of the Companies Act, 2013, the Independent Directors of your Company, have given a Declaration that they meet the criteria of Independence as provided in sub section (6)of Section 149 of the Act. There has been no change in terms and conditions of appointment of Independent Directors.

(i) Familiarization Programmes for Independent Directors:

In accordance with the requirements of Listing Regulations, all the Independent Directors are familiarized with their roles, rights and responsibilities in the Company at the time of appointment and also on a recurrent basis. The details of the policy relating to appointment of Independent Directors and familiarization programme imparted to Independent Directors of the Company during Financial Year 2025-26 are available on the website of the Company at: http://www.source-natural.com.

F. PARTICULARS OF REMUNERATION TO DIRECTORS/KMP/EMPLOYEES:

There were no employees during the year 2025-26 receiving remuneration in excess of threshold mentioned under the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

The details of Remuneration paid to the Directors, Key Managerial Personnel and Employees as required under Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given in Form MGT-7 which is posted on website of the company at https://www.source- natural.com/pages / annual-report-annual-returns.

11. NUMBER OF MEETINGS OF THE BOARD AND THEIR ATTENDANCE DURING THE FINANCIAL YEAR 2025-26.

Sr. No. Name of the Director	29.05.2025	13.08.2025	30.08.2025	14.11.2025	12.01.2026	14.02.2026	06.03.2026
1. Mr. N. Narasimhan	P	P	P	P	P	P	P
2. Mr. Arvind Varchaswi. N	P	P	P	P	P	P	P
3. Mr. Tejagna Katpitia	P	P	P	P	P	P	P
4. Mr. Puvan Sripathy	P	P	P	P	P	P	P
5. Commodore H G Harsha	P	P	P	P	P	P	P
6. Mr. Prasana Prabhu	LoA	P	P	P	P	P	P
7. Mrs. Romila Sen	P	LoA	P	P	P	P	P
8. Mrs. Darshna Patel	-	-	-	P	P	LoA	LoA
9. Mr. C L Rathi	P	P	P	-	-	-	-
10. Mr. JP Gupta	P	P	P	P	P	P	P
11. Mr. Sturle Harald Pedersen	P	P	P	P	P	P	P

12. NUMBER OF MEETINGS OF THE AUDIT COMMITTEE:

During the year 2025-26, the Committee met 5 (Five) times on the following dates, viz, May 29,2025, August 13, 2025, November 14, 2025, and February 14, 2026, and March 6, 2026.

The following are the details of the Directors, their attendance at the Audit Committee Meeting held during the year 2025-26.

Name	Designation in committee	Attendance
*Mr. Puvan Sripathy	Chairman	5
Commodore H.G. Harsha	Member	5
**Mrs. Romila Sen	Member	3
AMr. Chandrakumar L. Rathi	Member	2

*Mr. Puvan Sripathy was a member of the Audit Committee from October 1,2024, and was appointed as the Chairperson of the Audit Committee w.e.f. September 29, 2025.

**Mrs. Romila Sen was appointed as a Member of the Audit Committee w.e.f. September 29, 2025. ^AMr. Chandrakumar L. Rathi ceased to be a member upon his retirement w.e.f. September 28, 2025.

13. NUMBER OF MEETINGS OF THE STAKEHOLDERS RELATIONSHIP COMMITTEE:

The Stakeholders Relationship Committee is constituted pursuant to the provisions of the Companies Act, 2013.

During the year 2025-26. the Committee met once on 14^th February 2026.

The following are the details of the Members, their attendance at the Stakeholders Relationship Committee Meeting held during the year 2025-26.

Name	Designation	Attendance
Commodore H.G. Harsha	Chairman	1
Mr. Prasana Prabhu	Member	1
Mr. Sturle Harald Pedersen	Member	1

14. NUMBER OF MEETINGS OF THE NOMINATION AND REMUNERATION COMMITTEE:

The Nomination and Remuneration Committee (NRC) is constituted pursuant to the provisions of the Companies Act, 2013.

During the year 2025-26, the Committee met two (2) times once on the following dates, viz, on August 13, 2025, and August 30,2025.

The following are the details of the Members, their attendance at the Nomination and Remuneration Committee Meeting held during the year 2025-26.

Name	Designation	Attendance
Mrs. Romila Sen	Chairperson	1
*Mr. Chandrakumar L Rathi Member	Member	2
Dr. Jeewan Prakash Gupta	Member	2
**Mrs. Darshna Patel	Member	0

* Cessation upon retirement w.e.f. September 28, 2025 ** Appointed as member of the NRC w.e.f. September 29, 2025

15. DETAILS OF SHAREHOLDERS MEETINGS HELD AND ATTENDANCE FOR THE YEAR 2026:

Details of General Meeting	Date of Meeting	Number of Shareholders
		Entitled	Attended	%
Annual General Meeting	25-09-2025	3,863	32	0.83

16 .A) DISTRIBUTION OF SHAREHOLDING AS ON 31^st MARCH 2026.

Category / No of Shares	Number of Shareholders	% of Total Shareholders	No. of shares	%of Holdings to Total shareholding
Up-to - 500	3438	92.77	2,28,515	3.55
501 -1,000	123	3.32	92,545	1.44
1,001 - 2,000	51	1.38	72,309	1.12
2,001 - 3,000	24	0.65	59,785	0.93
3,001 - 4,000	12	0.32	42,713	0.66
4,001 - 5,000	13	0.35	58,409	0.91
5,001 -10,000	15	0.40	1,15,991	1.80
10,001 and above	30	0.81	57,66,664	89.59
Total	3,706	100	64,36,931	100

16. B] MARKET PRICE DATA AND PERFORMANCE COMPARISON:

The market price data (Open, High, Low and Close) of the Companys equity shares on BSE during each month for the period from 1st April 2025 to 31st March 2026 is set out below:

	Monthly Market price details from 01.04.2025 to 31.03.2026
Trade Date / Month	Open	High (*)	Low (Rs)	Close (Rs)
April, 2025	214.00	216.00	160.00	165.00
May, 2025	166.00	180.00	151.65	176.15
June, 2025	176.15	192.00	151.10	152.95
July, 2025	153.00	163.85	128.70	128.85
August, 2025	134.90	155.00	127.65	136.35
September, 2025	149.85	157.95	132.50	135.65
October, 2025	144.90	170.00	130.00	144.85
November, 2025	156.10	156.10	122.05	134.55
December, 2025	139.95	145.00	121.35	134.95
January, 2026	143.95	145.00	125.25	138.25
February, 2026	138.25	145.00	120.35	127.00
March, 2026	127.00	145.00	100.95	108.50

17. DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to the provisions under Section 134(5) of the Companies Act, 2013, with respect to Directors Responsibility Statement, the Directors confirm:

a. That in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed and no material departures have been made from the same;

b. That they have selected such accounting policies and applied them consistently, and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year on 31^st March, 2026 and of the profit and loss of the Company for that period;

c. That they have taken proper and sufficient care 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;

d. That they have prepared the annual accounts on a going concern basis;

e. That they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

f. That they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

18. AUDITORS:

The Statutory Auditors M/s. Srinaga & Giridharan, Chartered Accountants, Bangalore, who were appointed as the Statutory Auditors of the Company, will complete their second consecutive term at the conclusion of the ensuing 31^st Annual General Meeting (AGM). The Board places on record its sincere appreciation for the services rendered by M/s. Srinaga & Giridharan, during their tenure as the Statutory Auditors of the Company.

Based on the recommendation of the Audit Committee, the Board of Directors proposes the appointment of M/s. K B Nambiar & Associates, Chartered Accountants (FRN: 002303S; Peer Review Certificate No. 022505, valid from 30^th September 2025 to 30^th September 2028), as the Statutory Auditors of the Company for a term of five consecutive years from 2026-27 to 2030-31, to hold office from the conclusion of the 31st AGM until the conclusion of the 36th AGM, subject to the approval of the shareholders at the ensuing AGM.

The proposed auditors have confirmed their eligibility and willingness to act as Statutory Auditors of the Company in accordance with Sections 139 and 141 of the Companies Act, 2013, and the rules made thereunder. The necessary resolution for their appointment is being placed before the shareholders for approval at the ensuing AGM.

The Audit Report for the financial year 2025-26 as certified by the Statutory Auditors of the Company does not contain any qualification, reservation or adverse remarks and therefore does not require any explanations from the Directors.

Reporting of Frauds by Auditors:

During the year under review, there was no instance of frauds reported by the Auditors under Section 143 (12) of the Companies Act, 2013 and the rules made thereunder.

19. SECRETARIAL AUDIT REPORT:

The Board appointed CS. Kirana K R, Practicing Company Secretary, to carry out Secretarial Audit for the financial year 2025-26, under the provisions of Section 204 of the Companies Act, 2013. The Secretarial Audit Report is annexed to this report as Annexure-1. There are no qualifications made by the Auditor in the report. Annexure 2 is annexed as certificate of Non-Dis-Qualification of Directors.

20. COMPLIANCE WITH SECRETARIAL STANDARDS:

During the year under review, the Company has complied with the various provisions of all mandatory Secretarial Standards, including amendments thereto, as issued by the Institute of Company Secretaries of India (ICSI).

21. RELATED PARTY TRANSACTIONS:

All Related Party Transactions were in compliance of the Companies Act, 2013 and the SEBI Listing Regulations. There were no materially significant related party transactions made by the Company with Promoters, Directors or Key Managerial Personnel etc., which may have potential conflict with the interest of the Company at large.

All Related Party Transactions entered into by the Company were in the Ordinary Course of Business and at an Arms Length basis and were reviewed and approved by the Audit Committee and the Board and have been approved by shareholders. Omnibus approval was obtained for the transactions which were foreseeable and repetitive in nature. A statement of all Related Party Transactions was presented before the Audit Committee on quarterly basis, specifying the nature, value and terms and conditions of the transactions. Complete details of the Related Party Transactions are given in the Notes to Financial Statements forming part of this Annual Report.

In compliance with the requirements of the Listing Regulations, the Policy on Materiality of Related Party Transactions and on dealing with Related Party Transaction as approved by the Board may be accessed on the Companys website: http://www.source-natural.com.

Information on transactions with Related Parties pursuant to Section 134(3)(h] of the Companies Act, 2013 read with Rule 8(2] of the Companies (Accounts) Rules, 2014, are given in Form AOC-2 and is attached as Annexure-5 to this Annual Report.

22. CREDIT RATINGS:

The Company has not obtained any Credit Rating from any agency as the same is not mandated by any Bank due to low Credit exposure of the Company.

23. MANAGEMENT DISCUSSION AND ANALYSIS:

The Management Discussion and Analysis Report, prepared in accordance with Schedule V of the SEBI Listing Regulations, are annexed to this report as Annexure-3.

24. DETAILS OF SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNAL:

During the year under review, there have been no significant and material orders passed by any regulators or courts or tribunal.

25. RISK MANAGEMENT:

The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks identified are systematically addressed through mitigating actions on a continuing basis. These are discussed at the Meetings of the Audit Committee and the Board of Director of the Company.

The Company identifies the risks and control systems to mitigate them are in place. In the opinion of the Board, at present there are no risks which may threaten the existence of the Company.

26. ANNUAL RETURN:

Pursuant to the provisions of Sections 92(3) and 134(3)(a) of the Companies Act, 2013 read with Rule 12 of the Companies (Management and Administration) Rule, 2014, the Annual Return of the Company for the year ended March 31, 2026, has been hosted on the Companys website, which can be accessed at www.source-natural.com.

27. ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS:

According to section 134(5)(e) of the Act the term Internal Financial Control (1FC) means the policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

The Company has put in place an adequate system of internal financial controls with respect to the Financial Statements, which is commensurate with its size and nature of business ,which helps in ensuring the orderly and efficient conduct of business. No reportable material weakness in the operation was observed.

28. ESTABLISHMENT OF VIGIL MECHANISM:

The Company has formulated and published a Whistle Blower Policy to provide Vigil Mechanism for employees including directors of the Company to report genuine concerns. The provisions of this policy are in line with the provisions of the Section 177(9) of the Act and as per SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

29. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:

The Company is committed to providing a safe and conducive work environment to all of its employees and associates. The Company has created the framework for individuals to seek recourse and redressal to instances of sexual harassment. The Company has in place a Policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH, 2013). The policy formulated by the Company for prevention of sexual harassment is available on the website of the Company at www.source-natural.com. The Company

has complied with the provision relating to the constitution of Internal Committee under POSH, 2013.

During the year under review, no complaint pertaining to sexual harassment at workplace has been received by the Company.

30. COMPLIANCE WITH THE MATERNITY BENEFIT ACT, 1961

The Company has complied with the provisions of the Maternity Benefit Act, 1961, including all applicable amendments and rules framed thereunder. The Company is committed to ensuring a safe, inclusive, and supportive workplace for women employees. All eligible women employees are provided with maternity benefits as prescribed under the Maternity Benefit Act, 1961, including paid maternity leave, nursing breaks, and protection from dismissal during maternity leave.

The Company also ensures that no discrimination is made in recruitment or service conditions on the grounds of maternity. Necessary internal systems and HR policies are in place to uphold the spirit and letter of the legislation.

31. GENDER-WISE COMPOSITION OF EMPLOYEES

In alignment with the principles of diversity, equity, and inclusion (DEI), the Company discloses below the gender composition of its workforce as on the March 31, 2026.

Male Employees: 45 Female Employees: 8 Transgender Employees: NIL

This disclosure reinforces the Companys efforts to promote an inclusive workplace culture and equal opportunity for all individuals, regardless of gender.

32. CORPORATE SOCIAL RESPONSIBILITY (CSR):

As your Companys net worth does not exceed Rs. 500 Crores (or) Companys turnover does not exceed Rs. 1,000 Crores or companys net profit does not exceed Rs. 5 Crores for the financial year, the provisions under Section 135 of the Act read with rules made there under, are not applicable. Hence, the compliance to the initiative of Corporate Social Responsibility is not required.

33. PREVENTION OF INSIDER TRADING:

The Board of Directors have adopted the Insider Trading Policy in accordance with the requirement of the SEBI (Prohibition of Insider Trading) Regulation,2015 as amended from time to time. The Insider Policy of the Company lays down guidelines and procedures to be followed, and disclosures to be made while dealing with shares of the Company, as well as the consequences of violation. The policy has been formulated to regulate, monitor and ensure reporting of deals by employees and to maintain the highest ethical standards of dealing in Company securities.

The Code requires pre-clearance for dealing in the Companys shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed. The Board is responsible for implementation of the Code. All Directors and the designated employees have confirmed compliance with the Code. The same has been displayed at the companys website at www.source-natural.com

34. LISTING:

The shares of your Company continue to be listed on BSE Limited and traded actively during the year and the listing fees for the year 2025-26 have been paid. Your Company has duly complied with all the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements] Regulations, 2015 during the year under review.

35. SECURED LOANS

The secured loans of the Company stood at Rs. 779 Lakhs as on 31^st March 2026.

36. FIXED ASSETS

New assets valued Rs. 60.65 Lakhs have been acquired during the year and, as a result, the net block of fixed assets stands at Rs. 416.32 Lakhs at end 31.03.2026, after providing an accumulated depreciation of Rs. 636.28 Lakhs.

37. General Shareholder Information

1) 31^st Annual General Meeting

Date and Time: 30^th September 2026,11:30 A.M 2) Financial Calendar (2026-27) (Tentative)

The Financial year of the company is from 1st April of the year to 31st March of the next year.

For the year ending 31st March, 2026 quarterly Un-audited / Annual Audited results shall be announced as follows:

Financial reporting for	Proposed Date
Unaudited Results for the Quarter ending: 30th June, 2026	Declared on 10th August 2026
Unaudited Results for the Quarter ending: 30th September, 2026	On or before 14th November 2026
Unaudited Results for the Quarter ending: 31st December, 2026	On or before 14th February 2027
Audited Results for the year ended 31st March, 2027	On or before 30th May 2027

 

3) Book Closure Date:	24th day of September 2026 to 30th day of September 2026 (Both days inclusive)
4) Registered Office	No: 201, Sumeru Towers, 2nd Floor, #54/46, 39th A Cross, 11th Main Road, Jayanagar 4thT Block, Bangalore - 500 041
5) Listing of Equity Shares:	BSE Limited, Mumbai (BSE)
6) Listing Fees	Listing fee has been paid to BSE Limited till the year 2026- 2027
7) Stock Code	531398
8) ISIN No.	INE679C01027
9) CIN Number	L24231KA1995PLC101742
10) Plant Location:	Plot No: 22 & 23, SVCIE, Bachupally, Bachupally Mandal, Medchal Malkajigiri - Dist Hyderabad - 500 090.

38. OTHER DISCLOSURES:

a. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo:

Pursuant to the provisions of Section 134 of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules 2014, the details of conservation of energy and technology absorption and Foreign exchange earnings and outgo are attached as Annexure-4.

b. Subsidiary, Holding, Associate Companies:

As of March 31, 2026, the company had one Wholly owned subsidiary (WOS) namely Source Natural Solar Private Limited incorporated on February 6, 2026. In terms of the shareholding, the Company is a subsidiary of Sriveda Sattva Private Limited.

c. Particulars of Loans, Guarantees or Investments made under Section 186 of the Companies Act, 2013:

During the year, the company has invested Rs. 1,00,000 in the equity share capital of its Wholly owned Subsidiary namely Source Natural Solar Private Limited. There were no other loans, guarantees or investments made by the Company under Section 186 of the Companies Act, 2013 during the year under review and hence no details are furnished in this regard.

d. Particulars of Contracts or Arrangements made with Related Parties:

All the related party transactions are entered on arms length basis and in the ordinary course of business, in compliance with the applicable provisions of the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015.

The details of the transactions with related parties are provided in the Notes to the financial statements.

e. Fixed Deposits:

Your Company has not accepted any Fixed Deposits from the Public within the meaning of Section 73 to 76 of the Companies Act, 2013, during the year under review. The details for the same are filed with the concerned authorities.

f. Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the end of the financial year:

Your company has not made any application under Insolvency and bankruptcy Code, 2016 during the year under review.

g. The 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:

The company has not done any one-time settlement with the banks during the year under review.

39. ACKNOWLEDGEMENTS:

The Board take this opportunity to express their gratitude to all the customers, vendors, investors and bankers for their continued support during the year. It places on record its appreciation for the contribution made by the employees of the company at all levels. The Board also wishes to record its appreciation for business constituents like SEBI, BSE, NSDL, CDSL etc. for their continued support.

The Board thanks the Government of India, particularly the Ministry of Commerce, the Ministry of Finance, the Ministry of Corporate affairs, the State Governments, and other government agencies for their support, and look forward to their continued support in the future as well.

Place: Bangalore	For and On Behalf of the Board
Date: 03.09.2026
	(Arvind Varchaswi N.)	(Tejagna K Katpitia)
	Managing Director	Executive Director
	DIN:00143713	DIN:00445283