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

management believes that future economic benefits from these assets will be realized over
several years. Since the impact, if any, of not realizing the benefits of these assets in future
periods cannot be quantified the Summary Statements [Annexures I (c) and II (c)] have not
been adjusted. This item has been the subject matter of an audit qualification in the annual
financial statements of Crossword.
For further details, please refer to section “Consolidated Financial Information” on page_157of this
draft Red Herring Prospectus.
Our corporate structure:
Our existing corporate structure is as under:
Crossword Bookstores Ltd
51%
Our Main objects
The main objects of our Company to be pursued on its incorporation are:
1. To own, construct, take on lease or in any other manner and to run, render technical advice in
constructing, furnishing, running and management of retail business including departmental
stores, direct to home & mail order catalogue for all category of products and services dealing in
all kinds of goods, materials and items in India or any other part of the world.
2. To deal in all kind of garments, fabrics, accessories and allied goods in India and abroad.
The main objects clause and the objects incidental or ancillary to the main objects of the Memorandum of
Association of our Company enable us to undertake our existing activities for which the funds are being
raised through this Issue.
Changes in our Memorandum of Association
1) Change in ‘Other Objects’ Clause: The ‘Other Objects’ clause of our Company was amended vide a
special resolution passed in the AGM held on May 5, 1998 and the following clause no 134 under ‘Other
Objects’ ancillary to main objects was added:
‘Subject to the provisions of any law for the time being in force, to do business of money changers and to
deal in foreign exchange, either in cash or traveler’s cheques or credit cards’.
2) Increase in Authorized Capital
Since our Incorporation, the following changes have been made to our Memorandum of Association:
Date of
Shareholder
Approval
September19,1997
February 26, 1999*
March20, 1999
December28, 1999
Upasna Trading Ltd
100%
Change
Shopper's Stop Ltd
The authorised share capital of our Company was increased from Rs.0.5
mn comprising of 5,000 Equity Shares of Rs.100/-each to Rs.7.5mn
comprising of 75,000 Equity Shares of Rs.100/-each
Sub division of Equity Share capital comprising of 75,000 Equity Shares of
Rs.100/-each aggregating to Rs.7.5mn to 750,000 Equity Shares of Rs.10/each
aggregating to Rs.7.5mn. and
The authorised share capital of our Company was increased from Rs.7.5
mn comprising of 750,000 Equity Shares of Rs.10/- each to Rs. 17.5 mn
comprising of 1,750,000 Equity Shares of Rs.10/-each.
The authorised share capital of our Company was increased from Rs. 17.5
mn comprising of 1,750,000 Equity Shares of Rs.10/-each to Rs.225 mn
comprising of 22,500,000 Equity Shares of Rs.10/- each
The authorised share capital of our Company was increased from Rs. 225
mn comprising of 22,500,000 Equity Shares of Rs.10/-each to Rs.280 mn
comprising of 28,000,000 Equity Shares of Rs.10/-each
67
Shopper's Stop.Com (India) Ltd
100%
Shopper's Stop Services (India) Ltd
100%