Arka Defence & Locomotives 2025-26 Annual Report Submission

Revenue FY 2025-26: ₹54.27 lakhs (Previous year: ₹13.72 lakhs)
Other Income: ₹3.38 lakhs (Previous year: ₹0)
Total Income: ₹57.65 lakhs (Previous year: ₹13.72 lakhs)
Expenditure: ₹45.47 lakhs (Previous year: ₹12.94 lakhs)
Profit Before Tax: ₹12.18 lakhs (Previous year: ₹0.78 lakhs)
Profit After Tax: ₹12.18 lakhs (Previous year: ₹0.78 lakhs)
No dividend declared due to inadequate profits
No amount transferred to reserves
Standalone Net Worth: ₹442.22 lakhs (Previous year: ₹430.00 lakhs)
Paid-up Share Capital: ₹11,40,31,100 divided into 1,14,03,110 equity shares of ₹10 each
Authorized Share Capital: ₹12,00,00,000

Annual Report Submission Date: September 7, 2026
AGM Date: September 30, 2026 at 5:00 PM through VC/OAVM
Remote E-voting Period: September 27, 2026 (9:00 AM) to September 29, 2026 (5:00 PM)
Cut-off Date for Voting Rights: September 23, 2026
Board Meeting Dates: May 30, 2025; July 28, 2025; November 14, 2025; February 13, 2026
Fresh Certificate of Incorporation: August 8, 2026 (name change to Arka Defence & Locomotives Limited)

Statutory Auditors: M/s. P R S V & Co. LLP (resigned August 14, 2026); Proposed new auditors: M/s. Suresh Surana & Associates LLP
Internal Auditors: M/s. M M R S AND CO
Secretarial Auditors: M/s. P.S Rao & Associates
Registrar & Transfer Agent: M/s. Bigshare Services Pvt. Ltd.
Scrutinizer for E-voting: Mr. Jineshwar Kumar Sankhala, Practicing Company Secretary
Key Management Personnel: Sudhir Reddy Posireddy (Chairman & MD), Naraharisetty Mohan Krishna (Whole-time Director), Ramreddy Swathi (Whole-time Director), Visweswara Rao Kothapalli (CFO)

Company underwent strategic transition from textiles to defence and locomotive component manufacturing
Name changed from Source Industries (India) Limited to Arka Defence & Locomotives Limited effective August 8, 2026
Registered office relocated to 1B, Meenakshi Tech Park, 11th Floor Block C, Phase 2, Gachibowli, Hyderabad
New business focus on railway technologies (safety systems, signalling) and defence technologies (indigenous defence products)
Board reconstituted on July 28, 2025 with new management team
No subsidiaries, joint ventures, or associate companies
No fixed deposits accepted during the year

No change in share capital during the year
No buybacks, sweat equity, bonus shares, preference shares, or debentures issued
Promoter shareholding: 63.21% (72,07,793 shares)
Major shareholders: Sudhir Reddy Posireddy (26.15%), Ramreddy Swathi (23.59%), Naraharisetty Mohan Krishna (9.03%)

Change in control with new promoters acquiring controlling stake in FY 2024-25 and FY 2025-26
Complete structural shift in business from textiles to heavy engineering and defence
Alteration of Memorandum of Association objects clause approved by shareholders at EGM on March 30, 2026
Registered office relocation approved by Board on August 13, 2026

Board comprises 3 Executive and 3 Non-Executive Independent Directors
Board Committees: Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee
Whistle Blower Policy in place with no cases filed during the year
Risk Management Policy updated for defence and engineering sectors
No material related party transactions reported

Five-year strategic vision focused on foreign partnerships, digital twin systems, high-speed rail technology, and AI applications
Target markets: Railway safety systems (84,300 route-km opportunity) and defence indigenization (₹3 lakh crore government target by 2029)
Execution focus for FY 2026-27 on pursuing railway safety technologies and evaluating acquisitions

AGM Business: Adoption of financial statements, re-appointment of director, appointment of new statutory auditors
E-voting facility provided through CDSL for remote voting and during AGM
Annual Report available on company website: www.sourceindustriesindia.com
Shares listed on BSE Limited with scrip code 521036
Compliance certificate from secretarial auditors confirms adherence to applicable laws and regulations