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

7. Seasonality of business
Our business exhibits seasonality due to the bunching of festivals like Durga Puja, Diwali, Christmas
and Id in the third quarter of our financial year, in which historically we have reported higher sales.
Other than as described elsewhere in this draft Red Herring Prospectus, to the best of our knowledge,
there are no known factors, which are seasonal in nature and which we feel will have a material impact
on the operations and finances of the Company.
8. Dependence on single or few suppliers / customers
We source our products from a very diverse group of suppliers and thus our operations are risk averse
from supplier side. Similarly we sell our products to a wide variety of customer segments and do not
foresee business risk arising from our customers
9. Competitive Conditions
We believe that we are well positioned to enhance our position as a preferred shopping destination for
customers in the region in which we operate. On account of our competitive strengths we feel we are
well positioned to serve our customers. Such strengths include:
Experienced professional management team
Strong focus on systems and processes
Extensive use of Information Technology (IT) systems
Strong distribution and logistics network and supply chain
Vast range of lifestyle products and services
Internationally benchmarked shopping environment
Strong understanding of the real estate business
Large base of loyal customers
10. Significant developments after March 31st, 2004 that may affect our future results of
operations
Significant developments after March 31, 2004 that may affect our future results of operations
include:
• We have opened our 15 th store in June 2004 at Kolkata (Salt Lake City).
• Our debt has increased from Rs 589 mn as at March 31, 2004 to Rs 773 mn as at June 30,
2004.
• We have invested Rs 15 mn in a rights issue by our subsidiary, Crosswords Bookstores Ltd. Our
shareholding in the company remains 51% after the rights issue.
Save this as stated elsewhere in the draft Red Herring Prospectus, to our knowledge, no
circumstances have arisen since the date of the last financial statement as disclosed in the draft Red
Herring Prospectus which materially and adversely affect or is likely to affect the trading or
profitability of the Company, or the value of its assets, or its ability to pay its liability within the next
twelve months.
156