Notes to Accounts of Mason Infratech Ltd.

Mar 31, 2025

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 Standalone 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.

. Financial Risk / Credit Risk:

The Company has laid down a well-defined Risk Management Policy covering the risk mapping, trend
analysis, risk exposure, potential impact and risk mitigation process. A detailed exercise is being carried
out to identify, evaluate, manage and monitoring of both business and non-business risk. The Board
periodically reviews the risks and suggests steps to be taken to control and mitigate the same through a
properly defined framework.

15. Capital Management:

For the purpose of the Company’s capital management, capital includes issued equity capital, securities
premium and all other equity reserves attributable to the equity holders of the parent. The primary
objective of the Company’s capital management is to maximize shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure,
the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue
new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total
capital plus net debt. The Company includes within net debt, interest-bearing loans and borrowings,
less cash and cash equivalents, excluding discontinued operations.

(i) Debt is defined as long-term borrowings (including current maturities) and short-term
borrowings.

(ii) Equity is defined as equity share capital and other equity including reserves and surplus.

In order to achieve this overall objective, the Company’s capital management, amongst other
things, aims to ensure that it meets financial covenants attached to the interest-bearing loans
and borrowings that define capital structure requirements. Breaches in meeting the financial
covenants would permit the bank to immediately call loans and borrowings. There have been
no breaches in the financial covenants of any interest-bearing loans and borrowing in the
current period.

17. Segment Reporting:

The Company is mainly engaged in the business of Construction of residential buildings/ commercial
complexes and activities connected and incidental thereto. On that basis, the Company has only one
reportable business segment - Construction, the results of which are embodied in the Standalone
financial statements. The Company operates in only one geographical segment - within India.

18. Additional Regulatory Disclosure:

Additional regulatory information pursuant to the requirement in Division II of Schedule III to the
Companies Act 2013.

i. The Company does not have any Benami property, where any proceeding has been initiated or
pending against the Company for holding any Benami property.

ii. The Company does not have any transactions with companies struck off.

iii. The Company has not revalued its property, plant and equipment (including right-of-use
assets) or intangible assets or both during the current or previous year.

iv. The Company has not traded or invested in Crypto currency or Virtual Currency during the
financial year.

v. The Company has not advanced or loaned or invested funds to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the
intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

vi. The Company has not received any fund from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that
the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

vii. The Company has not any such transaction which is not recorded in the books of accounts that
has been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income
Tax Act, 1961)

viii. None of the entities in the Company have been declared wilful defaulter by any bank or
financial institution or government or any government authority.

ix. The Company has complied with the number of layers prescribed under the Companies Act,
2013 (xi) The Company has not entered into any scheme of arrangement which has an
accounting impact on current financial year.

For Mason Infratech Limite d

For Gada Chheda & Co LLP

Chartered Accountants
Firm Registration No. W1 00059

SD/-

SD/- SD/-

Ronak Pravin Gada Asit Thakkar Dattani Ashutosh Juthani

Partner (Chairman & MD) (Director)

Membership no.: 146825 DIN:01382453 DIN - 10131832

Place:Mumbai

Date: 28/05/2025

UDIN: 25146825BMIFQF7398

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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.

13. Financial Risk/Credit Risk:

The Company has laid down a well-defined Risk Management Policy covering the risk mapping, trend analysis, risk exposure, potential impact and risk mitigation process. A detailed exercise is being carried out to identify, evaluate, manage and monitoring of both business and non-business risk. The Board periodically reviews the risks and suggests steps to be taken to control and mitigate the same through a properly defined framework.

15. Capital Management:

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to maximize shareholder value.

1 he Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. I he Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest-bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations.

(i) Debt is defined as long-term borrowings (including current maturities) and short-term borrowings.

(ii) Equity is defined as equity share capital and other equity including reserves and surplus.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the^na^afc^ovenants of any interest-bearing loans and borrowing in the current period.

17. Segment Reporting:

The Company is mainly engaged in the business of Construction of residential buildings/ commercial complexes and activities connected and incidental thereto. On that basis, the Company has only one reportable business segment - Construction, the results of which are embodied in the financial statements. The Company operates in only one geographical segment - within India.

18. Additional Regulatory Disclosure:

Additional regulatory information pursuant to the requirement in Division II of Schedule III to the Companies Act 2013.

i. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

ii. The Company does not have any transactions with companies struck off.

iii. Ihe Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

lv. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

^v- '' ''^ie Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or Qn behalf of the company (Ultimate Beneficiaries) or

/Wu--O''

vi. 1 he Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

vti. The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

vm. None of the entities in the Company have been declared wilful defaulter by any bank or financial institution or government or any government authority.

’^x- The Company has complied with the number of layers prescribed under the Companies Act, 2013 (xi) The Company has not entered into any scheme of arrangement which has an accounting impact on current financial year.