Notes to Accounts of Step Two Corporation Ltd.

Mar 31, 2015

1. Related Party disclosure

Key Management Personnel Bholanath Manna Sanjay Agarwal Keshav Kumar Saraf Mamta Sharma Basant Kumar Agarwal

Enterprise Controlled by Key Management personnel & their relatives Step Two Infrastructure Pvt. Ltd.

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Mar 31, 2014

1. Related Party disclosure

Key Management Personnel

Bholanath Manna

Sanjay Agarwal

Keshav Kumar Saraf

Enterprise controlled by Key Management personnel & their relatives

Step Two Infrastructure Pvt. Ltd.

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Mar 31, 2013

1. As defined in Paragraph 2( 1) (xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in column (5) above.

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Mar 31, 2012

1. As defined in Paragraph 2(l)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in column (5) above.

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Mar 31, 2011

1.1 Particulars in respect of opening stock, purchases, sales & closing stock of shares, Mutual Funds etc.

1.2. In terms of the Reserve Bank of India guidelines issued to Non-Banking Financial Companies, all investments in securities are bifurcated into current investments & long term investments. Investments which are acquired with the intention of short term holding are considered as Stock- in-trade and classified as current assets and others are considered as long term investments. Long term investments are valued at cost, whereas current investments are valued at cost or market price whichever is lower.

1.3. During the financial) year 1997-98, a sum of Rs.25,00,000/- (Rupees Twenty Five Lacs only) had been fraudulently withdrawn from Punjab & Sind Bank Ltd., New Targri Road Branch, Kolkata. The matter is under litigation. The closing balance of this account as appearing in the balance sheet under the head "Cash & Bank Balances" isRs.25,02,195/-.

(ii) Name and description of relationship with the related parties: Associates of Key Managerial Personnel: M/s. Raj Bhavna & Associates & M/s.Asra Abasan Pvt. Ltd.

1.4 Related party disclosures as per Accounting Standard-18 are given below:

(i) Details of transactions with related parties: (Amount in Rs.)

1.5 No employee is eligible for gratuity benefits, hence, the same has not been provided in the books. 2.10There is no outstanding amount payable to small scale industrial undertaking, which is outstanding for more than 30 days.

1.6 As per provisions of Macro Small and Medium Enterprises Development Act, 2006, there are no such enterprises to whom the company over due which are outstanding for more than 45 days at the Balance Sheet date to the extent such enterprises have been identified on the basis of information available with the company.

1.7 Previous years figures have been re-grouped & re-arranged wherever considered necessary.

Notes:

1. As defined in Paragraph 2(l)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2- Provisioning norms shall be applicable 'as-prescribed in the-Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions. 1998.

3. All Accounting Standards and Guidance Notes issued by ICA1 are applicable including for valuation of investments .and other asset»as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in column (5) above.

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Mar 31, 2010

1.1. In terms of the Reserve Bank of India guidelines issued to Non-Banking Financial Companies, all investments in securities are bifurcated into current investments & long term investments. Investments which are acquired with the intention of short term holding are considered as Stock-in- trade and classified as current assets and others are considered as long term investments. Long term investments are valued at cost, whereas current investments are valued at cost or market price whichever is lower.

1.2. During the financial year 1997-98, a sum of Rs.25,00,000/- (Rupees Twenty Five Lacs only) had been fraudulently With drawn from Punjab & Sind Bank Ltd., New Targri Road Branch, Kolkata. The matter is under litigation. The closing balance of this account as appearing in the balance sheet under the head "cash &bank balances" is Rs.25,02,195/-.

1.3 No employee is eligible for gratuity benefits, hence, the same has not been provided in the books.

1.4 There is no outstanding amount payable to small scale industrial undertaking, which is outstanding for more than 30 days.

1.5 As per provisions of Macro Small and Medium Enterprises Development Act, 2006, there are no such enterprises to whom the company over due which are outstanding for more than 45 days at the Balance Sheet date to the extent such enterprises have been identified on the basis of information available with the company.

1.6 Previous years figures have been re-grouped & re-arranged wherever considered necessary.

2 The opening as well as the closing balance of Cash & Cash Equivalents as shown in the Cash Row Statement include an amount of Rs. 25,00,000/- which was fraudulently withdrawn from the Punjab & Sind Bank in the financial year 1996-97. The closing Balance of this account as appearing in Balance Sheet under the head "Cash & Bank Balances" is Rs. 25,02,195/- as on 31.03.2009. The entire amount is not available for use by the Company.

3 The Cash Flow Statement has been prepared using Indirect Method set out in Accounting Standard 3 issued by the Institute of Chartered Accountants of India.

This is the Cash Flow Statement referred to in our report of even date.