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

Earnings before Interest Depreciation Tax and Amortisation and exceptional items (EBIDTA)
EBIDTA margins, as a percentage of Gross Retail Turnover is 6.1% in FY 2004 and 6.5 % in FY 2003.
We reported an EBIDTA of Rs. 247 mn in FY 2004 as against Rs. 196 mn in FY 2003.
Finance Charges
Finance charges as a percentage of Gross Retail Turnover is 1% of Gross Retail Turnover in FY 2004
and 1.05% FY 2003.
Depreciation.
Depreciation charges accounted for 1.9 % of Gross Revenue. Our depreciation charges amounted to Rs.
75 mn in FY 2004 as against Rs. 58 mn in FY 2003.
Income tax
We provided for income tax as our profits increased and had a tax charge of about Rs. 10 mn.
Profit after tax as per Audited statement of Accounts
Our profit after tax margins, as a percentage of Gross Retail Turnover was about 3 % as our profits
increased to Rs. 121 mn in FY 2004 as against Rs. 106 mn in the prior year, an increase of 14% from last
year.
Adjusted Profit
Our profit after tax has been adjusted on account of, adoption of accounting policy prescribed by AS-26,
with respect to intangible items namely preliminary expenses, brand development expenses and store
launch expenses and due to reclassification and capitalization of software consultancy cost as fixed
assets and provision of depreciation on the same at the rate of 20% each year.
Adjustment for fiscal 2004
We have adjusted our profits for fiscal 2004 to present the net effect of change in accounting policy
pursuant to adoption of AS-26 from fiscal 2004 to reallocate the cost relating to amortisation of
preliminary expenses, brand development expenses and store launch expenses to previous period in
which they were incurred. Also due to reclassification of software consultancy cost as fixed assets and
provision of depreciation on the same. On account of the following adjustments, we have restated our
profits for fiscal 2003 downwards by Rs.1 million.
Liquidity and Capital Resources
Liquidity
Our primary liquidity needs have historically been to finance our capital expenditure and to some extent
our working capital needs. To fund these costs, we have relied on cash flows from operations and
working capital limits.
Cash Flows
The table below summarizes our cash flows trends for FY 2002, FY 2003 and FY 2004
Rs mn
Period ending March 31 2004 2003 2002
Net Cash Flow from Operations 118 166 29
Net Cash Flow from Investing (187) (249) 42
Net Cash Flow from Financing 63 80 (82)
Net Cash and Cash Equivalents (6) (3 (11)
Figures in brackets represent cash outflow
152