Accounting Policies of Step Two Corporation Ltd. Company

Mar 31, 2025

a Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow
to the Company and the revenue can be reliably measured and there exists reasonable
certainty of its recovery.

I) Interest

Interest income or expense is recognised using the effective interest method. The ‘effective
interest rate’ is the rate that exactly discounts estimated future cash payments or receipts
through the expected life of financial instrument to the gross carrying amount of the
Financial Asset, or the ammortised cost of the financial liability.

In calculating interest income and expense, the effective interest rate is applied to the gross
carrying amount of the asset (when the asset is not credit impaired) or to the amortised cost
of the liability.

ii) Dividend Income

Dividend income is recognised in statement of profit & loss on the date on which the
Company’s right to receive payment is established.

b. Property, Plant & Equipment (”PPE”)

PPE held for use are stated in the balance sheet at cost less accumulated depreciation and
accumulated impairment losses, if any.

Cost of an item of property, plant & equipment comprises purchase price, including import
duties and non-refundable taxes on purchase (goods and service tax), after deducting trade

discounts and rebates and any directly attributable cost of bringing the item to its working
condition for its intended use.

Any gain/loss on disposal of an item of property, plant and equipment is recognised in
statement of profit and loss.

c. Depreciation and Ammortisation

Depreciation is recognised using straight line method so as to write off the cost of assets
less their residual values over their estimated useful lives specified in Schedule II to the
Act. depreciation for additions to/deductions from, owned assets is calculated pro rata to
the period of use.

Depreciation method, useful lives and residual values are reviewed at each financial year-
end and adjusted if necessary, for each reporting period.

d. Financial Assets

For the purpose of subsequent measurement, financial assets are classified and measured
based on the entity’s business model for managing financial asset and contractual cash flow
charecteristics of financial asset at:

- Those measured at Ammortised Cost

- Those measured at Fair Value through Other Compre hensive Income (FVTOCI)

- Those measured at Fair Value through Profit and Loss (FVTPL)

I) Financial Assets at Ammortised Cost

Includes assets that are held within a business model where objective is to hold financial
assets to collect contractual cash flows and contractual terms gives rise on specified dates
to cash flows that are solely payments of principal and interest on principal amount
outstanding.

These assets are measured subsequently at amortised cost using the effective interest
method, Interest income, foreign exchange gains and losses, if any and impairment are
recognised in the statement of profit and loss. Any gain or loss on derecognition is
recognised in statement of profit and loss.

ii) Financial Assets at Fair Value through Other Comprehensive Income

Includes assets that are held within a business model where objective is both collecting
contractual cash flows and selling financial assets along with contractual terms giving rise

on specified dates to cash flows that are solely payments of principal and interest on
principal amount outstanding. The Company has made an irrevocable election to present in
other comprehensive income changes in fair value of an investment in any equity
instrument that is not held for trading. This selection is made on instrument-by -instrument
basis.

Dividends are recognised as income in the statement of profit and loss unless it clearly
represents a recovery of part of cost of the investment. Other net gains and losses are
recognised in OCI and are not reclassified to the statement of profit and loss
The fair values of financial assets in this catagory are determined by reference to active
market transactions or using a valuation technique where no active market exists.

iii) Financial Assets at Fair Value through Profit and Loss

Financial assets at FVTPL include financial assets that are designated at FVTPL upon
initial recognition and financial assets that are not measured at amortised cost or FVTOCI.
All derivative financial instruments fall into this catagory, except for those designated and
effective as hedging instruments, for which the hedge accounting requirements apply.
Assets in this catagory are measured at fair value with gains or losses recognised in the
statement of profit and loss.

The fair values of financial assets in this catagory are determined by reference to active
market transactions or using a valuation technique where no active market exists..

e. Financial Liabilities

Financial liabilities are classified, at initial recognition, as fnancial liabilities at fair value
through profit or loss or at amortised cost. The Company’s financial liabilities include
borrowings, trade and other payables and derivative financial instruments.

All interest-related charges and, if applicable, changes in an instrument’s fair value that are
reported in the statement of profit and loss are included within finance costs or finance
income.

f. Employee Benefit Expense

The undiscounted amount of short-term employee benefits expected to be paid in exchange
for the services rendered by employees are recognised during the year when the employees
render the service. These benefits include performance incentive and compensated
absences which are expected to occure within twelve months after the end of the period in
which the employee renders the related service.

Income tax expense comprises current and deferred taxes. Income tax expense is recognised
in the statement of profit and loss except when they relate to items that are recognised
outside statement of profit and loss (whether in other comprehensive income or directly in
equity), in which case tax is also recognised outside statement of profit and loss.

Deferred tax assets and liabilities are recognised for the future tax consequences of
temporary difference between the carrying values of assets and liabilities and their
respective tax bases, and unutilised business loss and depreciation carry-forwards and tax
credits. Deferred tax assets are recognised to the extent that it is probable that future taxable
income will be available against which the deductible temporary differences, unused tax
losses, depreciation carry-forwards and unused tax credits could be utilised.

The Corporation provides for current tax liabilities at the best estimate that is expected to be
paid to the tax authorities where an outflow is probable.

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Mar 31, 2024

a Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow
to the Company and the revenue can be reliably measured and there exists reasonable
certainty of its recovery.

I) Interest

Interest income or expense is recognised using the effective interest method. The ‘effective
interest rate’ is the rate that exactly discounts estimated future cash payments or receipts
through the expected life of financial instrument to the gross carrying amount of the
Financial Asset, or the ammortised cost of the financial liability.

In calculating interest income and expense, the effective interest rate is applied to the gross
carrying amount of the asset (when the asset is not credit impaired) or to the amortised cost
of the liability.

ii) Dividend Income

Dividend income is recognised in statement of profit & loss on the date on which the
Company’s right to receive payment is established.

b. Property, Plant & Equipment (”PPE”)

PPE held for use are stated in the balance sheet at cost less accumulated depreciation and
accumulated impairment losses, if any.

Cost of an item of property, plant & equipment comprises purchase price, including import
duties and non-refundable taxes on purchase (goods and service tax), after deducting trade

discounts and rebates and any directly attributable cost of bringing the item to its working
condition for its intended use.

Any gain/loss on disposal of an item of property, plany and equipment is recognised in
statement of profit and loss.

c. Depreciation and Ammortisation

Depreciation is recognised using straight line method so as to write off the cost of assets
less their residual values over their estimated useful lives specified in Schedule II to the
Act. depreciation for additions to/deductions from, owned assets is calculated pro rata to
the period of use.

Depreciation method, useful lives and residual values are reviewed at each financial year-
end and adjusted if necessary, for each reporting period.

d. Financial Assets

For the purpose of subsequent measurement, financial assets are classified and measured
based on the entity’s business model for managing financial asset and contractual cash flow
charecteristics of financial asset at:

- Those measured at Ammortised Cost

- Those measured at Fair Value through Other Compre hensive Income (FVTOCI)

- Those measured at Fair Value through Profit and Loss (FVTPL)

I) Financial Assets at Ammortised Cost

Includes assets that are held within a business model where objective is to hold financial
assets to collect contractual cash flows and contractual terms gives rise on specified dates
to cash flows that are solely payments of principal and interest on principal amount
outstanding.

These assets are measured subsequently at ammortised cost using the effective interest
method, Interest income, foreign exchange gains and losses, if any and impairment are
recognised in the statement of profit and loss. Any gain or loss on derecognition is
recognised in statement of profit and loss.

ii) Financial Assets at Fair Value through Other Comprehensive Income

Includes assets that are held within a business model where objective is both collecting
contractual cash flows and selling financial assets along with contractual terms giving rise

on specified dates to cash flows that are solely payments of principal and interest on
principal amount outstanding. The Company has made an irrevocable election to present in
other comprehensive income changes in fair value of an investment in any equity
instrument that is not held for trading. This selection is made on instrument-by -instrument
basis.

Dividends are recognised as income in the statement of profit and loss unless it clearly
represents a recovery of part of cost of the investment. Other net gains and losses are
recognised in OCI and are not reclassified to the statement of profit and loss
The fair values of financial assets in this catagory are determined by reference to active
market transactions or using a valuation technique where no active market exists.

iii) Financial Assets at Fair Value through Profit and Loss

Financial assets at FVTPL include financial assets that are designated at FVTPL upon
initial recognition and financial assets that are not measured at amortised cost or FVTOCI.
All derivative financial instruments fall into this catagory, except for those designated and
effective as hedging instruments, for which the hedge accounting requirements apply.
Assets in this catagory are measured at fair value with gains or losses recognised in the
statement of profit and loss.

The fair values of financial assets in this catagory are determined by reference to active
market transactions or using a valuation technique where no active market exists..

e. Financial Liabilities

Financial liabilities are classified, at initial recognition, as fnancial liabilities at fair value
through profit or loss or at amortised cost. The Company’s financial liabilities include
borrowings, trade and other payables and derivative financial instruments.

All interest-related charges and, if applicable, changes in an instrument’s fair value that are
reported in the statement of profit and loss are included within finance costs or finance
income.

f. Employee Benefit Expense

The undiscounted amount of short-term employee benefits expected to be paid in exchange
for the services rendered by employees are recognised during the year when the employees
render the service. These benefits include performance incentive and compensated
absences which are expected to occure within twelve months after the end of the period in
which the employee renders the related service.

Income tax expense comprises current and deferred taxes. Income tax expense is recognised
in the statement of profit and loss except when they relate to items that are recognised
outside statement of profit and loss (whether in other comprehensive income or directly in
equity), in which case tax is also recognised outside statement of profit and loss.

Deferred tax assets and liabilities are recognised for the future tax consequences of
temporary difference between the carrying values of assets and liabilities and their
respective tax bases, and unutilised business loss and depreciation carry-forwards and tax
credits. Deferred tax assets are recognised to the extent that it is probable that future taxable
income will be available against which the deductible temporary differences, unused tax
losses, depreciation carry-forwards and unused tax credits could be utilised.

The Corporation provides for current tax liabilities at the best estimate that is expected to be
paid to the tax authorities where an outflow is probable.

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Mar 31, 2015

A Basis of preparation of financial statements

These financial statements are prepared in accordance with Generally Accepted Accounting Principles in India, under the historical cost convention, on a going concern concept and in accordance to applicable accounting standards.

b Revenue Recognition

Income & Expenditure are accounted for on accrual basis except dividend income which is accounted for on the basis of right to received dividend.

c Use of Estimates

Certain estimates and assumptions have been made in preparation of financial statement. The difference between the actual results and estimates are recognised in the year in which the results are known / materialised.

d Provisions and contingent liabilities

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised not disclosed in the financial statements.

e Fixed assets

Fixed Assets are accounted at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalised until fixed assets are ready for use,

f Depreciation and Amortization

Deprecation on fixed assets has been provided for on straight line basis at rates prescribed under Schedule H of the Companies Act, 2013.

g Taxation

Current Tax

Provision for income tax is made on the assessable income at the tax rate applicable for the relevant assessment year.

Deferred Tax

Deferred tax liability is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are not recognized unless there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

h Earnings per share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity sharess outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

Investments are either classified as current or long term based on management's intention at the time of purchase. Current investments are carried at the lower of cost and fair value of each investment. Long term investments are carried at cost.

j Inventories

Stock of all quoted shares and securities has been value at cost or fair value whichever is lower. Unquoted shares have been valued at cost of acquisition.

k Cash flow statement

Cash flow reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash from operating, investing and financing activities of Company are segregated.

I Previous year figures have been regrouped & rearranged wherever necessary to confirm to the current years classification.

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Mar 31, 2014

A Basis of preparation of financial statements

These financial statements are prepared in accoedance with Generally Accepted Accounting Principles in India, under the historical cost convention, on a going concern concept and in accordance to applicable accounting standards.

b Revenue Recognition

Income &. Expenditure are accounted for on accrual basis except dividend income which is accounted for on the basis of right to received dividend.

c . Use of Estimates

Certain estimates and assumptions have been made in preparation of financial statement The difference between the actual results and estimates are recognised in the year in which the results are known/materialised.

d Provisions and contingent liabilities

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised not disclosed in the financial statements.

e Fixed assets

Fixed Assets are accounted at cost, less accumulated depredation and impairment, if any. Direct costs are capitalised until fixed assets are ready for use.

f Depreciation and Amortization

Depreciaton on fixed assets has been provided for on straight line basis at rates prescribed under Schedule XIV of the Companies Act, 1956.

g Taxation

Current Tax

Provision for income tax is made on the assessable income at the tax rate applicable for the relevant assessment year.

Deferred Tax

Deferred tax liability is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are not recognized unless there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

h Earnings per share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity sharess Outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

i Investments

Investments are either classified as current or long term based on management's intention at the time of purchase. Current investments are carried at the lower of cost and fair value of each investment. Long term investments are carried at cost.

j Inventories

Stock of all quoted shares and securities has been value at cost or fair value whichever is lower. Unquoted shares have been valued at cost of acquisition.

k Cash flow statement

Cash flow reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash from operating, investing and financing activities of Company are segregated.

L Previous year figures have been regrouped & rearranged wherever necessary to confirm to the current years classification.

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Mar 31, 2012

1 Basis of preparation of financial statements

These financial statements are prepared in accordance with Generally Accepted Accounting Principles in India, under the historical cost convention, on a going concern concept and in accordance to applicable accounting standards.

2 Revenue Recognition

Income & Expenditure are accounted for on accrual basis except dividend income which is accounted for on the basis of right to received dividend.

3 Use of Estimates

Certain estimates and assumptions have been made in preparation of financial statement The difference between the actual results and estimates are recognised in the year in which the results are known/materialised.

4 Provisions and contingent liabilities

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised not disclosed in the financial statements.

5 Fixed assets

Fixed Assets are accounted at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalised until fixed assets are ready for use.

6 Depreciation and Ainu tization

Depredaton on fixed assets has been provided for on streight line basis at rates prescribed under Schedule XTVofthe Companies Act, 1956.

7 Taxation

Current Tax

Provision for income tax is made on the assessable income at the tax rate applicable for the relevant assessmentyear.

Deferred Tax

Deferred tax liability is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are not recognized unless there is reasonable certaintymat sufficient future taxable income will be available against which such deferred tax assets can be realised.

8 Earnings per share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

9 Investments

Investments are either classified as current or long term based on management's intention at the time of purchase. Current investments are carried at the lower of cost and fair value of each investment Long term investments are carried at cost.

10 Inventories

Stock of all quoted shares and securities has been value at cost or fair value whichever is lower. Unquoted shares have been valued at cost of acquisition.

11 Cash flow statement

Cash flow reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash from operating, in vesting and financing activities of Company are segregated.

12 The Company is a Small and Medium Sized Company (SMC) as defined in the General Instructions in respect of Accounting Standard notified under the Companies (Accounting Standard) Rule, 2006. Accordingly, the Company has complied with the Accounting Standards as applicable to the Small and Medium Sized Company.

13 Previous year figures have been regrouped & rearranged wherever necessary to confirm to the current years classification.

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Mar 31, 2011

1.1 Accounting Convention

The accounts have .been prepared on historical cost convention under accrual method of accounting and under the going concern concept & in accordance with the applicable accounting standards.

1.2 Basis of Accounting

The Company prepares its financial statement in accordance with generally accepted Accounting practices and also in accordance with the requirement of the Companies Act, 1956.

1.3 Inventories

Stock of all quoted shares and securities has been valued at cost or market price whichever is lower.Unquoted shares have been valued at cost of acquisition.

1.4 Investments

Investments are stated at their cost of acquisition.

1.5 Income & Expenditure

Income & Expenditure are accounted for on accrual basis except dividend income which is accounted for on the basis of right to received dividend.

1.6 Fixed Assets

Fixed Assets are stated at their original cost of acquisition which includes expenditure incurred for ' the acquisition and / or installation cost (if any) as reduced by accumulated depreciation there on up-to-date.

Depreciation on Fixed Assets has been provided for on straight line basis at rates prescribed under Schedule XIV of the Companies Act, 1956.

1.7 Taxation

Current Tax *

Provision for income tax is made on the assessable income at the tax rate applicable for the relevant assessment year. -

Deferred Tax

Deferred tax is recognised, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are not recognised unless there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

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Mar 31, 2010

1.1 Accounting Convention

The accounts have been prepared on historical cost convention under accrual method of accounting and under the going concern concept & in accordance with the applicable accounting standards.

1.2 Basis of Accounting

The Company prepares its financial statement in accordance with generally accepted Accounting practices and also in accordance with the requirement of the Companies Act, 1956.

1.3 Inventories

Stock of all quoted shares and securities has been valued at cost or market price whichever is lower.

1.4 Investments

Investments are stated at their cost of acquisition.

1.5 Income & Expenditure

Income & Expenditure are accounted for on accrual basis except dividend income which is accounted on receipt basis.

1.6 Fixed Assets

Fixed assets are stated at their original cost of acquisition (which includes expenditure incurred for the acquisition and/or installation if any) as reduced by accumulated depreciation thereon.

Depreciation on Fixed Assets has been provided on straight line basis at rates prescribed under Schedule XIV of the Companies Act, 1956.

1.7 Taxation

Provision for income tax is made on the assessable income at the tax rate applicable for the relevant assessment year.

Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are not recognized unless there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

[Provision for fringe Benefit tax has been made in accordance with the provision of the Chapter XII-H of the Income Tax Act, 1961.]