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

SHOPPERS’ STOP SERVICES (INDIA) LIMITED
ANNEXURE - III(d): SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE
SUMMARY STATEMENTS
SIGNIFICANT ACCOUNTING POLICIES
a) Basis of Accounting
The company follows accrual system of accounts & the historical cost convention in accordance with
generally accepted accounting practices. Revenues are recognised and expenses are accounted on
accrual basis with necessary provision for all known liabilities.
b) Fixed Assets and Depreciation:
Fixed assets include Cost of acquisition and installation. Depreciation on straight line basis has been
charged based on the useful life of the fixed assets which is taken as 5 years for all assets.
NOTES TO SUMMARY STATEMENTS
a) Brief Background about the Company:
185
Rupees in ‘000)
The Company was incorporated on 15 th March 2000 as a Private Company with intention of
providing services and undertake consultation in the area of accounting, operations, business and
other fields. Presently Company is performing certain accounting outsourcing activities for its holding
company Shoppers’ Stop Limited.
b) Summary of other income:
31 March, For the year ended 31
Nature of
2004
2003
March
2002 2001
Income
Leave Encashment
15 Nil Nil Nil Nonprovision
Write back
Recurring
Profit on sale of
Nil 32 Nil Nil Non-
Assets
Recurring
Miscellaneous
Nil Nil Nil 2 Nonincome
and credits
Recurring
Total 15 32 Nil 2
c) Till 31 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.
d) The Company being a 100% subsidiary of SSL the entire Assets and Liabilities and Profit/Losses
reported in Annexures-I (d) and II (d) relate to the holding company, No adjustments in respect of
these have been made in the books of the holding company.