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

SHOPPERS’ STOP. COM INDIA LIMITED
ANNEXURE - III(e) : SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE SUMMARY
STATEMENTS
SIGNIFICANT ACCOUNTING POLICIES
c) Basis of Accounting
The company follows accrual system of accounts and 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.
d) 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:
188
(Rupees in ‘000)
The Company was incorporated on 11 February 2000 and is engaged in the business of selling
apparel and accessories over the Internet based on the recognition that this would be an important
medium of sales. Further it is also to be seen as online extension of Shoppers’ Stop Ltd. With over
1400 options, it soon became the largest apparel site amongst Indian e-commerce internet sites. Dot
Com corners were established in the various terrestrial stores of Shoppers’ Stop Ltd.
b) Summary of other income:
For the year ended 31 st March
2004 2003 2002 2001
Credit balance and
- - -
provisions no longer
required (net)
4000
Total 4000 - - -
Nature of
Income
Non-Recurring
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) Operations of the Company have been closed in February 2001. However accounts have been
prepared on Going Concern basis as the Company proposes to restructure its operations.
e) The Company being a 100% subsidiary of SSL the entire Assets and Liabilities and Profit/Losses
reported in Annexures-I (e) and II (e) relate to the holding company, No adjustments in respect of
these have been made in the books of the holding company.