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

167
Depreciation (%)
Asset Previ
ous
New
Leasehold Improvements 11.11 5
Air-conditioning and other equipment 20-11.11 5
Furniture fixtures and other fittings 33.33,20 and 11.11 10
Computers 33.33-20 20
Trade marks and copy rights 16.67 10
(see note 7(b) below)
6. Exceptional and non-recurring items:
(a) During the year ended 31 March 2001, the Company wrote off an unsecured loan of Rs.12
million advanced to its 100% subsidiary SSDotcom.
(b) During the year ended 31 March 2002 the Company assumed liabilities of SSDotcom
aggregating to Rs 3.5 million consequent to the closure of SSDotcom’s business and also
provided for diminution in the value of investments aggregating to Rs. 0.5 million in SSSIL.
(c) During the period ended 31 March 2004, the Company provided for diminution in the value of
investments aggregating to Rs. 1 million in SSDotcom and Upasna.
7. Impact on account of adjustments required by paragraph 6.18.7(b) of the Guidelines.
Net Profit/(Loss) after tax as per
reviewed / audited accounts
Adjustments on account of
changes in accounting policies :
For the year ended 31 March
2004 2003 2002 2001 2000
121
106
2
(230)
- Deferred costs adjustment [See
(a) below]
(1) (16) 5 15 (12)
Adjusted Profits / (Losses) 120 90 7 (215) (95)
a) Till 31 March 2003 the Company deferred costs related to certain intangible items, namely,
preliminary expenses, software consultancy costs, brand development expenses and store
launch expenses, and amortised them to revenue over a period of three years. Consequent to
the mandatory adoption of Accounting Standard 26 on “Intangible Assets”, the Company now
expenses such items (other than software consultancy costs) to revenue as they are incurred.
Software consultancy costs have been reclassified and capitalized under fixed assets. They are
written off over a period of five years, the estimated useful life of the software. Adjustments
have been made in the above table to reflect these changes.
b) Excess provision of earlier years made on estimated basis in those years have been adjusted in
the years to which they relate, to the extent identified.
8. The operations of Upasna, a 100% subsidiary are entirely dependent on the Company, and the
Company is committed to provide the necessary level of financial support to Upasna to enable it to
operate and pay its debts if required. We are informed that management plans to enhance
Upasna’s role in the distribution and logistics operations of group companies and it will therefore be
able to repay SSL’s dues in the near future. Of Rs 39.84 outstanding amount, Rs.25.30 had been
advanced to meet certain disputed liabilities which Upasna has paid under protest and the Company
has correspondingly included this amount under contingent liabilities (see note 2 above). Out of the
balance, Rs.14.54 the impact of non-recovery, if any cannot be quantified.
(83)