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

NOTES TO THE SUMMARY STATEMENTS
1. Brief Background of the Company:
181
(Rupees in ‘000)
Crossword was incorporated on November 3, 1999. The Company is a subsidiary of Shoppers Stop
Limited (SSL). SSL holds 51% of its equity share capital. The company is engaged in the business
of retailing books, music, toys, stationery etc., through departmental and concessionaire stores,
operated either by itself or by franchisees. At present the Company has 9 owned or franchisee
stores and 9 Crossword Corner stores, owned or franchised
2. Contingent Liabilities:
Clams against the Company not
acknowledged as debts.
3. Summary of other income:
As at 31 st March
2004 2003 2002 2001 2000
266
For the year ended 31 st March
Nature of
2004 2003 2002 2001 2000 Income
Interest income 9 172 1,024 Nil Nil Recurring
Profit on sale of Assets 181 NIL NIL NIL NIL Non- Recurring
Credit balances and
provisions no longer
required (net)
Nil Nil Nil 338 Nil Non-Recurring
Expired gift vouchers Nil Nil 137 170 Nil Non-Recurring
Miscellaneous income and
credits
266
356
466
2172 947 1,233 89 301 Recurring
Total 2,362 1,119 2,394 597 301
4. Revision in useful life of fixed assets:
During the year ended 31 st 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 lives.
Depreciation (%)
Asset Previous New
Leasehold Improvements 20 5
Furniture fixtures and other fittings 20 10
Computers 33-20 20
5. Deferred tax:
Till 31 st March 2002 the Company accounted for current income tax only and did not account for
deferred tax. Consequent to the mandatory adoption of Accounting Standard 22 on “Taxes on
Income”, the Company now also accounts for deferred taxes. No adjustments for deferred tax credits
relating to unabsorbed depreciation and carried forward losses have been made on considerations
of prudence, in accordance with the requirements of the Standard.
408