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

ANNEXURE XII (d): SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE
CONSOLIDATED SUMMARY STATEMENTS.
a) Principles of Consolidation
The subsidiaries are consolidated on a line-by-line basis. Interest of the minority
shareholders in the subsidiaries’ profits or losses and net worth is displayed separately in the
consolidated Summary Statements. (refer note 1 below). Inter-company transactions and
balances are eliminated on consolidation.
b) Uniform Accounting Policies
SSL and its subsidiaries, in preparing their standalone annual financial statements have
adopted uniform accounting policies ( except as stated in c below).The Consolidated
Statement of Assets and Liabilities and Profits and Losses ( Annexures XI(a) and XI(b) have
been prepared using the same accounting policies, referred Annexures III(a) to III(e) ( except
as stated in c below).
c) Amortisation of Intangible Assets
Crossword in its standalone annual financial statements has amortises Trademarks,
Copyrights and Goodwill uniformly over a period of 20 years. Such intangibles are amortised
by SSL over a period of 10 years, which is in accordance with Accounting Standard 26 on
“Intangible Assets”. For the purposes of the Consolidated Statements, in line with the policy
followed by SSL these assets of Crossword are also amortised over a period of 10 years.
d) Cash Flow Statement
The Consolidated Cash Flows have been prepared on the basis of the restated Consolidated
Summary Statement of Assets and Liabilities and Profits and Losses. The Cash Flow
Statement is prepared by the indirect method set out in Accounting Standard 3 on Cash Flow
Statements and presents the cash flows by operating, investing and financing activities of the
company.
Cash and cash equivalents presented in the Cash Flow Statement consist of cash on hand
and demand deposits with banks
NOTES TO THE CONSOLIDATED SUMMARY STATEMENTS
(Rupees in millions)
1. Brief background
SSL does not prepare general-purpose annual consolidated financial statements. The
Consolidated Summary Statements included in Annexures XII(a) and XII(b) contain a line
by line consolidation of Annexures I(a) to I(e) and II(a) to II(e) which are the Summary
Statements of SSL and its subsidiaries, Upasna,, Crossword, SSSIL and SSDotcom .
2. Contingent Liabilities:
Particulars
As at 31 March
2004 2003
Contractual liability
Claims against the Company
38 26
not acknowledged as debts
1
1
Counter Guarantee NIL 70
Total 39 97
3. Outstanding Capital Commitments (Net of Advances):
As at 31 March
2004 2003
24 NIL
203