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

Administration expenses include expenses related to occupation costs, insurance, security, professional
expenses, security expenses, printing, electricity, travel and conveyance, and other miscellaneous
expenses.
Occupation costs include contractual charges paid for occupying the properties in which our stores are
located and common area maintenance. Occupation costs are largely fixed and form a large percentage
of total fixed costs.
Depreciation
Fixed assets are stated at their original cost of acquisition less accumulated depreciation. Cost includes
all cost incurred to bring the assets to their present condition and location. Expenditure incurred upto the
date of launching new stores, to the extent attributable to the acquisition, or construction of fixed assets
are also capitalised.
The Company capitalizes software and related implementation costs where it is reasonably estimated
that the software has an enduring useful life.
Depreciation is provided, pro rata to the period of use, by the straight line method, based on
management's estimate of useful lives of the fixed assets, or at the SLM rates prescribed in Schedule XIV
to the Act whichever is higher, at the following annual rates:
Effective depreciation rates
(%)
Trademarks and copyrights 10
Air conditioning and other equipment 5
Furniture, fixtures and other fittings 10
Computers 20
Vehicles 20
Leasehold improvements are depreciated over the total period of the lease, (including the renewal
periods), or 20 years, whichever is lower.
Taxation / Deferred Tax
Income taxes are accounted for in accordance with Accounting Standard 22 on “Accounting for Taxes on
Income”. Taxes comprise both current and deferred tax.
Current tax is measured at the amount expected to be paid/recovered from the taxation authorities, using
the applicable tax rates and tax laws.
The tax effect of the timing differences that result between taxable income and accounting income and
are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or
deferred tax liability. They are measured using the substantively enacted tax rates and tax regulations.
The carrying amount of deferred tax assets at each balance sheet date is reduced to the extent that it is
no longer reasonably certain that sufficient future taxable income will be available against which the
deferred tax asset can be realised.
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