Accounting Policies of SSMD Agrotech India Ltd. Company

Mar 31, 2026

CORPORATE INFORMATION

SSMD AGROTECH INDIA LIMITED (Previously known as SSMD Agrotech India Private Limited) is a Public limited Company domiciled in India originally incorporated as Shree Dhan Laxmi Flour Mills Private Limited vide certificate of incorporation dated 10.10.2023 issued by Registrar of Companies, Delhi, bearing Corporate Identification Number U10611DL2023PTC421046. The name of the company was changed to SSMD Agrotech India Private Limited on 15.02.2024 and subsequently converted into public limited company vide fresh certificate of incorporation dated 24.02.2025 being Corporate Identification Number U10611DL2023PLC421046. The company is in the business of manufacturing and trading of FMCG Agro Food products encompassing besan, chana dal, atta, poha, sujl, maida, daliya, sattu, puffed rice, murmura and beyond. Futher, Company got listed on SME BSE platform and has raised Initial Public Offer of 28,17,000 Equity Shares of Rs. 121/- each at a premium of Rs. Ill/- each, aggregating to Rs. 3,408.57 lakhs. The Equity Shares of the Company was listed on BSE SME platform on 02 December, 2025 and being Corporate Identification Number L10611DL2023PLC421046 now.

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

(a) The financial statements are prepared in accordance with Generally Accepted Accounting Principles (Indian GAAP) under the historical cost convention on accrual basis and on principles of going concern. The accounting policies are consistently applied by the Company.

(b) The financial statements are prepared to comply in all material respects with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and provisions of Companies Act, 2013.

(c) The preparation of the financial statements require estimates and assumptions to be made that affect the reported amounts of assets and liabilities as on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialize.

1.2 Use of Estimates

The preparation of financial statements requires estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses during the reporting period. Although such estimates and assumptions are made on a reasonable and prudent basis taking into account all available information, actual results could differ from these estimates & assumptions and such differences are recognized in the period in which the results are crystallized.

1.3 Income and Exoenditure

Income and Expenditure are accounted for on accrual basis except in case where there is no reasonable certainty regarding the amount/or its collectibility.

1.4 Revenue Recoenition

(a) The company generally follows the mercantile system of accounting and recognizes Income & Expenditure on accrual basis.

(b) Revenue is recognized to the extent that it is possible that, the economic benefits will flow to the company and the revenue can be reliably estimated and collectability is reasonably assured.

(c) Revenue from sale of goods and services are recognized when control of the products being sold is transferred to our customer and then there are no longer any unfulfilled obligations. The performance obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.

(d) Revenue is measured based on sale price, after deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the Government such as goods and service tax etc. Accumulated experience is used to estimate the provision for such discounts and rebates. Revenue is only

1.5 ProDertv. Plant & Eauioment and Intangible Assets & Depreciation

(a) Property, Plant and Equipment is stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any. Cost of acquisition or construction of property, plant and equipment comprises its purchase price including import duties and non-refundable purchase taxes after deducting trade discounts, rebates and any directly attributable cost of bringing the item to its working condition for its intended use.

(b) Subsequent costs are included in the assets'' carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance cost are charged to the statement of profit and loss during the period in which they are incurred.

(c) Gains or losses that arise on disposal or retirement of an asset are measured as the difference between net disposal proceeds and the carrying value of property, plant and equipment and are recognized in the statement of profit and loss when the same is derecognized.

(d) Depreciation is calculated on pro rata basis on written down value method (WDV) based on estimated useful Life as prescribed under Part C of Schedule - II of the Companies Act, 2013. Freehold land is not depreciated.

(e) Intangible assets purchased are initially measured at cost. The cost of an intangible assets comprises its purchase price including duties and taxes and any costs directly attributable to making the assets ready for their intended use. The useful lives of intangible assets are assessed as either finite or indefinite. Finite-life intaneible assets are amortized on a straight-line basis over the Deriod of their estimated useful lives.

1.6 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss Is recognized wherever the carrying amount of an asset exceeds Its recoverable amount. The recoverable amount is the higher of the asset''s net selling price and value In use, which Is determined by the present value of the estimated future cash flows

1.7 Investments

Investments shall be classified as long-term Investments and shall be stated at cost. Provisions shall be made to recognize any diminution other than temporary in the value of such investments. Current investments shall be carried at lower cost and fair value.

1.8 Inventories

Inventories of finished goods are valued at cost price or net realisable value whichever is less in accordance with AS-2 as prescribed by ICAI. Cost of inventory includes all taxes and duties excluding duties, which are refundable.

1.9 Segment Reporting

A. Business Segments:

Based on the guiding principles given in Accounting Standard 17 (AS - 17) on Segment Reporting issued by ICAI, the Company has only one reportable Business Segment which is engaged in business of manufacturing & trading of FMCG Food Products.

B. Geographical Segments

The Company activities / operations are confined to India and as such there is only one geographical segment. Accordingly, the figures appearing in these financial statements relate to the Company''s single geographical segment.

1.10 Purchases

Purchases on account of import are inclusive of all the related expenses up to the receipt of material at godown.

1.11 Foreign Currency Transactions

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction. The difference in monetary assets and liabilities relating to foreign currencies transactions remaining unsettled at the year end are translated at year end rates and are recognized in the profit & Loss account.

1.12 Taxation

Provision for taxation is made for both current and deferred taxes. Provision for current income tax is made on current tax rates based on assessable income. The company provides for deferred tax based on the tax effect of timing differences resulting from the recognition of items in the financial statement and in estimating its current tax provisions. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date.Deferred tax assets are recognized only to the extent there is reasonable certainty with respect to reversal of the same in future years as a matter of prudence.

1.13 Provision for Bonus

No provision for bonus for the period ended September 30, 2025, has been made in the accounts as the same is accounted on cash basis.

1.14 Retirement and Leave Encashment Benefits

Provision for gratuity and Leave encashament has been made on the basis of Acturial report received. Other retirement benefits like Provident Fund, ESIC etc if ''applicable'' shall be charged to profit and loss account.''

1.15 Borrowing Costs

(a) Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalized for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use.

(b) Other Borrowing costs are recognized as an expense in the period in which they are incurred.

1.16 Contingent Liabilities

(a) Provision involving substantial degree of estimation in measurements is recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

(b) Contingent Liabilities are shown by way of notes to the Accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable.

(c) A Contingent Asset is not recognized in the Accounts.

1.17 Earnings per share (EPS)

(a) Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equities shares outstanding during the period.

(b) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.18 Prior Period Items

Prior Period and Extraordinary items and Changes in Accounting Policies having a material impact on the financial affairs of the Company are disclosed in financial statements if any.