Shopper's Stop Limited - Securities and Exchange Board of India

We also receive sponsorship income, which varies with the type, and the number of promotional events
organised by us.
We recognize revenue from store displays and sponsorships based on the period for which the products
or the sponsor’s advertisements are promoted/displayed. Facility management fees are recognised prorata
over the period of the contract. Revenue trend from our other operating income is shown as below:
Period ending March 31 2004 2003 2002
Gross Retail Sales 3954 2,949 2402
Facility management fees 30 30 27
Income from store displays 24 12 19
Sponsorship income 19 16 7
Other Operating Income 73 58 53
Other Operating Income as
percentage of Gross Retail Sales 1.85% 1.96% 2.21%
144
Rs mn
Other Income
In past years, Other Income mainly comprised of interest income, credit balance and provisions written
back, write back of liability towards expired gift vouchers, refund of sales tax, scrap sales, miscellaneous
income and credit. The trend for the last 3 years is shown as under:
Period ending March 31 2004 2003 2002
Interest income 1 2 9
Credit balance and provisions written back (net) 7 13 10
Write back of liability towards expired gift
vouchers - - 7
Refund of sales-tax - - 5
Scrap sales 3 2 2
Miscellaneous income and credits 7 6 7
Total 18 23 40
Sales Tax:
Sales Tax is applicable on certain merchandise and varies from state-to-state. Sales tax expense for FY
2004 was Rs.100 mn as against Rs. 25 mn in FY 2003 and Rs 9 mn in FY 2002.
Seasonality in Business
Our business operations are affected by seasonalities, which arise due to:
1) Festival Related Seasonality
Our business exhibits seasonality due to the bunching up of festivals like Durga Puja, Diwali, Christmas,
Id, etc in the 3 rd quarter of our financial year, with the October-December quarter traditionally being our
best quarter in terms of sales. Since our overheads are largely fixed, any expansion in sales directly
helps improve margins, and hence the 3 rd quarter tends to have higher Gross Retail Sales and profits