Accounting Policies of Mason Infratech Ltd. Company

Mar 31, 2025

Note 2. Summary of significant accounting policies:

1. Property, Plant and Equipment

All items of property, plant and equipment are stated at cost net of accumulated depreciation and
accumulated impairment losses, if any.

The cost of an item of property, plant, and equipment comprises:

(a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade
discounts and rebates, if any.

(b) any costs directly attributable to bringing the asset to the location and condition necessary for it to
be capable of operating in the manner intended by management.

Subsequent costs are included in the carrying amount of asset or recognised 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
expenses are charged to the Statement of Profit and Loss during the period in which they are incurred.

Spare parts, stand-by equipment and servicing equipment are recognized as property, plant and
equipment if they are held for use in the production or supply of goods or services, for rental to others,
or for administrative purposes and are expected to be used during more than one period.

Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are
disclosed as ‘Capital work-in-progress’.

2. Revenue Recognition:

a. Revenue from Construction Contracts:

Performance obligation in case of construction contracts is satisfied over a period of time, since -
the Company creates an asset that the customer controls as the asset is created. The Company has
an enforceable right to payment for performance completed to date if it meets the agreed
specifications.

b. Interest:

Revenue is recognised on a time proportion basis taking into account the amount outstanding & the
rate applicable.

3. Inventory Valuation :

Inventories, if any, are measured at the lower of cost and net realisable value.

The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in
bringing the inventories to their present location and condition.

The cost of construction material is determined on a FIFO basis. Shuttering Material included in Work
in Progress used in the construction process and are hence part of Work in Progress, which are valued
at cost less amortisation/charge based on their usage.

Work in progress in respect of Construction Contracts is valued on the basis of technical estimates and
completion basis.

4. Investments :

Non-current investments are carried at cost. Provision for diminution in the value of non-current
investments is made only if such a decline is other than temporary in the opinion of the management.
Current investments are carried at lower of cost and fair value. The comparison of cost and fair value
is done separately in respect of each category of investments.

5. Employee Benefits :

a. Short-term Employee Benefits:

All employees benefits payable wholly within twelve months of rendering the service such as
salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia
are recognised in the period in which the employees render the related services.

b. Defined benefit plans (Gratuity):

The company’s gratuity benefit scheme is an unfunded defined benefit plan. The Company’s net
obligation in respect of a defined benefit plan is calculated by estimating the amount of future
benefit that employees have earned in return for their service in the current and prior periods, that
benefit is discounted to determine its present value.

6. Borrowing Costs :

Borrowing Cost that are attributable to the acquisitions or construction of qualifying assets are
capitalized as part of the cost of such asset. A qualifying asset is one that necessarily takes a substantial

period of time to get ready for its intended use. All other borrowing cost are charged to the statement
of profit & Loss.

7. Income Tax:

Provision for current tax is computed as per ''Total Income'' returnable under Income Tax Act, 1961
taking into account available deductions and exemptions.

Accounting for deferred taxation is done in accordance with the requirements of Accounting Standard
"Accounting for Taxes on Income" ( AS- 22 ) as per section 133 of Companies Act, 2013 read with
Rule 7 of Companies (Accounts) Rules, 2014 and as per Companies (Accounting Standards) Rules,
2006 pursuant to section 211 (3C) of the Companies Act, 1956. Deferred tax is calculated at the tax
rates and laws that have been enacted or substantially enacted as at the Balance Sheet date and is
recognised for all timing differences being the differences between taxable income & accounting
income that originate in one period and are capable of reversal in one or more subsequent period(s).

i. Current Income Tax:

Income tax expense comprises of current tax and deferred tax. Income tax expense is
recognized in the statement of profit and loss except to the extent that it relates to items
recognized directly in equity/OCI, in which case it is recognized in other comprehensive
income. Current income tax for current and prior periods is recognized at the amount expected
to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have
been enacted or substantively enacted on the reporting date.

The Company offsets current tax assets and current tax liabilities, where it has a legally
enforceable right to set off the recognized amounts and where it intends either to settle on a net
basis, or to realize the asset and settle the liability simultaneously.

ii. Deferred Tax:

Deferred income tax assets and liabilities are recognized for all temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the Standalone
financial statements.

Deferred income tax assets are recognised to the extent that it is probable that taxable profit
will be available against which the deductible temporary differences and the carry forward
unused tax losses can be utilised.

The carrying amount of deferred income tax assets is reviewed at each reporting date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available
to allow all or part of the deferred income tax asset to be utilised.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected
to apply to taxable income in the years in which the temporary differences are expected to be
received or settled.

The major components of Income tax expenses for the year ended March 31, 2025

8

8. Taxes other than Income Tax:

Taxes other than Income Tax deposited relating to this financial year & balance taxes payable (Net of
available Input Tax Credits) for this financial year are taken on the basis of computation of tax liability
as per returns submitted / to be submitted to the tax Authorities for this financial year.

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Mar 31, 2024

Note 1. SIGNIFICANT ACCOUNTING POLICIES & NOTES ON ACCOUNTS FORMING PART OF THE FINANCIAL STATEMENTS.

A. Background:

The Financial Statements comprise the Financial Statements of M/s Mason Inffatech Limited, it is a Limited Company incorporated and domiciled in India. The registered office of the company is at Flat No. 103, Imperia, Mahavir Millenium, Vasant Vihar. Pokhran Road, No. 2, Thane, Maharashtra, India, 400610. The company is engaged in the business of Infrastructure & Construction activity in the State of Maharashtra. The Financial Statement is for the period from 24th April 2023 to the period ending 31st March 2024.

The company was incorporated on 24/04/2023 by converting Mason Infrastructure (partnership firm) to Mason Inffatech Private Limited, later upon conversion into a public company w.e.f. 16/11/2023 the name of the said company changed to Mason Inffatech Limited, later on, the Company got listed on the NSE SME platform on 01/07/2024. As the Company was incorporated on 24/04/2023, the previous financial year''s comparative figures, and Trade Receivable and Payable aging are not provided by the Company.

B. Basis of Preparation of Financial Statement:

a. Basis of Accounting :

i. These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (‘Indian GAAP’) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

ii. As per MCA notification dated 16th February, 2015 Companies whose shares are listed or in the process of listing on SME exchange as referred to in Chapter XB of SEBI (Issue of Capital and Disclosure Requirements) Regulation, 2009, are exempted from the compulsory requirement of adoption of IND-AS.

iii. The Company follows a mercantile system of accounting and recognizes income and expenditure on accrual basis.

b. Use of Estimates :

The preparation of financial statements in conformity with Indian GAAP Requires the management to make estimates and assumptions that affect the reported amounts of assets and liability, the reported amounts of income and expenses and disclose of contingent liabilities at the date of financial statements and the result of operations during the reporting year-end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results differ from these estimates.

c. Presentation & disclosures in financial statements:

I-or the period ended 31st March 2024, the revised Schedule VI notified under the Companies Act, 2013, is applicable to the company, for presentation & disclosures in financial statements.

Note 2. Summary of significant accounting policies:

1. Property, Plant and Equipment

All items of property, plant and equipment are stated at cost net of accumulated depreciation and _ accumulated impairment losses, if any. f,

. [(

x’oy ^cost °f ^an *^tem °f property, plant, and equipment comprises: \

{[''%( ppM mo its purchase price, including import duties and non-refundable purchase taxes, after

00059 ;^deducting ^trade discounts and rebates, if any.

‘wjni /M^lmy C°^{StS d}''^{reCtly attributable t0} bringing the asset to the location and condition necessary

---^{t0 ca}P^abi^e °f operating in the manner intended by management.

Subsequent costs are included in the carrying amount of asset or recognised 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 expenses are charged to the Statement of Profit and Loss during the period in which they are incurred.

Spare parts, stand-by equipment and servicing equipment are recognized as property, plant and equipment if they are held for use in the production or supply of goods or services, for rental to others, or tor administrative purposes and are expected to be used during more than one period.

Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as ‘Capital work-in-progress’.

2. Revenue Recognition:

a. Revenue from Construction Contracts:

Performance obligation in case of construction contracts is satisfied over a period of time, since -the Company creates an asset that the customer controls as the asset is created. The Company has an enforceable right to payment for performance completed to date if it meets the agreed specifications.

b. Interest:

Revenue is recognised on a time proportion basis taking into account the amount outstanding & the rate applicable.

3. Inventory Valuation :

Inventories, if any, are measured at the lower of cost and net realisable value.

The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

The cost of construction material is determined on FIFO basis. Work in progress in respect of Construction Contracts is valued on the basis of technical estimates and completion basis.

4. Investments:

Non-current investments are carried at cost. Provision for diminution in the value of non-current investments is made only if such a decline is other than temporary in the opinion of the management. Current investments are carried at lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investments.

5. Employee Benefits :

a. Short-term Employee Benefits:

All employees benefits payable wholly within twelve months of rendering the service such as salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia are recognised in the period in which the employees render the related services.

b. Defined benefit plans (Gratuity):

The company s gratuity benefit scheme is an unfunded defined benefit plan. The Company’s net obligation in respect ol a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods, that benefit is discounted to determine its present value.

6. Borrowing Costs :

Borrowing Cost that are attributable to the acquisitions or construction of qualifying assets are capitalized as part of the cost of such asset. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing cost are charged to the statement of profit & Loss.

7. Income Tax:

Provision for current tax is computed as per Total Income'' returnable under Income Tax Act, 1961 taking into account av^jf5We⁼stoductions and exemptions.

Accounting for deferred taxation is done in accordance with the requirements of Accounting Standard Accounting for Taxes on Income" ( AS- 22 ) as per section 133 of Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014 and as per Companies (Accounting Standards) Rules, 2006 pursuant to section 211 (3C) of the Companies Act, 1956. Deferred tax is calculated at the tax rates and laws that have been enacted or substantially enacted as at the Balance Sheet date and is recognised for all timing differences being the differences between taxable income & accounting income that originate in one period and are capable of reversal in one or more subsequent period(s).

i. Current Income Tax:

Income tax expense comprises of current tax and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent that it relates to items recognized directly in equity/OCI, in which case it is recognized in other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted on the reporting date.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

ii. Deferred Tax:

Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

Deferred income tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward unused tax losses can be utilised.

I he carrying amount ot deterred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

9. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to fulfill the obligation and in respect of which a reliable estimate can be made. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.

A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

10. Capital Work-in-Progress:

Projects under construction wherein assets are not ready for use in the manner as intended by the management are shown as Capital Work-In-Progress.