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

NOTES T0 THE SUMMARY STATEMENTS
1. Brief background
a) About the Company
Upasna was incorporated on 8 December 1995. It is a 100 per cent subsidiary of SSL.
175
(Rupees in ‘000)
The main activity of the Company is to procure and supply merchandise to SSL. Up to 31 December
2002, the Company carried out this activity on a principal-to-principal basis with suppliers of the
merchandise and in turn with SSL. From 1 January 2003, the Company carries on this activity as a
Carrying and Forwarding agent of SSL.
b) Operational outlook
As at 31 March 2004, the Company had accumulated losses of Rs.13,148 which exceeds the
shareholders’ funds of Rs.500 as at that date.
The Company’s operations are entirely dependent on its holding company SSL. SSL has committed
to provide the necessary level of financial support to the Company to enable it to operate and pay its
debts as and when they become due. Further, SSL’s business plans envisage a significant increase
in its operations. Accordingly, these Summary Statements have been prepared assuming that the
Company will continue as a going concern and do not therefore include any adjustments relating to
the recoverability and classification of asset amounts or the amounts and classification of liabilities
that might result should the Company be unable to continue as a going concern.
2. Contingent Liabilities:
Sales tax
liability
As at 31 st March
2004 2003 2002 2001 2000
37,018
3. Summary of other income:
25,993
For the year ended 31 st March
Nature of
2004 2003 2002 2001 2000
Income
Interest income 80 Nil Nil Nil 30 Recurring
Compensation for Nil Nil 2691 12,904 Nil Non-Recurring
inventory written off,
received from SSL
Refund of sales-tax Nil 996 1,400 Nil Nil Non-Recurring
Scrap sales 3 459 310 111 Nil Recurring
Profit
assets
on sale of
Miscellaneous
income and credits
Nil
574 Nil Nil Nil Nil Non-Recurring
1,486 1,451 2,683 127 19 Recurring
Total 2,143 2,906 7,084 13,142 49
4. Revision in useful life of fixed assets:
During the year ended 31 March 2002, the Company revised its estimate of the useful life of some of
its fixed assets (see table below). A revision in the useful life of fixed assets, being a change in
accounting estimate, in accordance with Accounting Standard 5 on “Net Profit or Loss for the Period,
Prior Period Items and Changes in Accounting Policies” and Accounting Standard 6 on “Depreciation
Accounting”, the change has been applied prospectively and the concerned assets have been
depreciated over the balance of their new estimated useful life.
Nil
Nil