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Step Two Corporation Ltd.

BSE: 531509 Sector: Financials
NSE: N.A. ISIN Code: INE623D01015
BSE LIVE 13:39 | 13 Sep 10.45 -0.55
(-5.00%)
OPEN

11.05

HIGH

11.05

LOW

10.45

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 11.05
PREVIOUS CLOSE 11.00
VOLUME 15
52-Week high 11.80
52-Week low 9.70
P/E 24.88
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 11.00
Sell Qty 1096.00
OPEN 11.05
CLOSE 11.00
VOLUME 15
52-Week high 11.80
52-Week low 9.70
P/E 24.88
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 11.00
Sell Qty 1096.00

Step Two Corporation Ltd. (STEPTWOCORP) - Auditors Report

Company auditors report

To

The Members of

STEP TWO CORPORATION LIMITED

Report on the Financial Statements

We have audited the accompanying standalone financial statements of STEP TWOCORPORATION LTD. which comprise the Balance sheet as at 31st March 2016 the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (“the Act”) with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2016 its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (“the Order”)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the “Annexure A” a statement on the matters specified in theparagraph 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that:

a) we have sought and obtained all the information and explanations which to the bestof

our knowledge and belief were necessary for the purposes of our audit.

b) in our opinion proper books of account as required by law have been kept by the

Company so far as it appears from our examination of those books;

c) the balance sheet the statement of profit and loss and the cash flow statementdealt

with by this Report are in agreement with the books of account;

d) in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e) on the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act;

f) with respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in 'Annexure B'. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the company's internal financial controls overfinancial

reporting; and

g) with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. the Company does not have any pending litigations which would impact its

financial position;

ii. the Company did not have any long term contract including derivatives contracts

for which there were any material foreseeable losses; and

iii. there were no amount which is required to be transferred to the Investor

Education and Protection Fund by the Company.

As required by the "Non Banking Financial Companies Auditor's Report (ReserveBank) Directions 1998" we further state that we have submitted a Report to theBoard of Directors of the Company containing a statement on the matters of supervisoryconcern to the Reserve Bank of India as specified in the said Directions namely thefollowing: -

1. The company incorporated prior to January 9 1997 has applied for registration asprovided in section 45IA of the Reserve Bank of India Act 1934 (2 of 1934). The Companyhas been granted certificate of registration as NBFC by the Reserve Bank of India &the Registration no. is 05.02614 dated 04.06.1998.

2. The Board of Directors of the Company has passed a Resolution for non-acceptance ofany public deposits.

3. The Company has not accepted any public deposits during the year under reference.

4. The Company has complied with the prudential norms relating to income recognitionaccounting standards asset classification and provisioning of bad doubtful debts asapplicable to it.

for AGRAWAL SINGHANIA & CO.
Chartered Accountants
FRN No. 323512E
Place : Kolkata (Sanjay Kumar Agrawal)
Date : 17.05.2016 Partner
Membership No. 056837

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on

the financial statements for the year ended 31st March 2016 we report that:

1. Fixed Assets:

a. The Company has maintained proper records showing full particulars including

quantitative details and situation of fixed assets.

b. As explained to us all fixed assets have been physically verified by the managementduring the year in a phased periodical manner which in our opinion is reasonable havingregard to the size of the company and nature of its assets. No material discrepancies werenoticed on such physical verification.

c. The company doesn't have any immovable property hence this clause is not

applicable.

2. In respect of its inventories it was explained to us that inventory consists ofShares and securities which are held in dematerialized form hence physical verificationis not possible. However it has been verified from demat statements by the management atregular intervals and no material discrepancies were noticed during the year.

3. The company has not granted any loans secured or unsecured to companies firm andother parties covered in the register maintained under section 189 of Companies Act 2013.

4. The Company being a Non-Banking Financial Company the provisions of Section 185& 186 is not applicable to it.

5. The Company has not accepted any deposits from the public.

6. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act in respect of activities of the Company.

7. In respect of Statutory dues:

a. According to the records maintained by the Company and information and explanationsgiven to us undisputed statutory dues in respect of Income Tax wealth tax sales taxcustom duty excise duty Service Tax Cess and other statutory dues have been regularlydeposited with the appropriate authorities. According to the information and explanationsgiven to us no undisputed amounts payable in respect of the aforesaid dues wereoutstanding as at March 31 2016 for a period of more than six months from the date ofbecome payable.

b. There are no Disputed Statutory dues.

8. The Company did not have any outstanding dues to financial institutions banksGovernment dues or debenture holders during the year.

9. The company has not raised any money by way of Initial Public Offer Further PublicOffer or term loan during the year. Hence this clause is not applicable.

10. According to the information and explanations given to us no material fraud on orby the

Company has been noticed or reported during the course of our audit.

11. The managerial remuneration has been paid after the requisite approvals as mandatedby

provisions of Section 197 read with Schedule V of the Companies Act 2013

12. The company is not a Nidhi Company. Therefore this clause is not applicable

13. The company has made adequate disclosures in Financial Statements for related party

transaction as required u/s 188 of Companies Act

14. The company has not made any preferential allotment or private placement of sharesor fully

or partly convertible debentures during the year.

15. The company has not entered into any non-cash transaction with directors or personsas per

provisions of Section 192 of companies Act 2013.

16. The Company is registered u/s 45-IA of the Reserve Bank of India Act 1934 videregistration

no. 05.02614 dated 04.06.1998

for AGRAWAL SINGHANIA & CO.
Chartered Accountants
FRN No. 323512E
Place : Kolkata (Sanjay Kumar Agrawal)
Date : 17.05.2016 Partner
Membership No. 056837

ANNEXURE 'B' TO THE INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section

143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of Step TwoCorporation Ltd. (“the Company”) as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Standards on Auditing prescribed under Section 143(10) of the Act and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the“Guidance Note”) to the extent applicable to an audit of internal financialcontrols Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note.

for AGRAWAL SINGHANIA & CO.
Chartered Accountants
FRN No. 323512E
Place : Kolkata (Sanjay Kumar Agrawal)
Date : 17.05.2016 Partner
Membership No. 056837