Pantaloon Retail

1.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs. 66.80 Crores (2007:
 66.25 Crores)
 
 2 Contingent Liabilities not provided for :
 
                                                        (Rs. In Crores)
 Particulars                                        2007-08     2006-07
 
 A.  Claims against the Company not
 acknowledged as debts
 
 i) Service tax                                       7.40           -
 ii) Others                                           5.34       24.64
 
 B.  Uncalled liability on shares partly paid up     50.53           -
 
 C.  Corporate Guarantees given to banks and
 Financial institutions on behalf of
 Group Companies                                     53.90       42.86
 
 D.  Total Guarntees by banks on behalf of
 the company and group Companies                     48.65       33.82
 
 3.  Following the Indian GAAP (AS-2), The Company has refined the
 method of valuation of finished goods from Retail Price less Mark up
 to At lower of cost and Net Realizable Value. Consequent to this
 change, the value of inventories is being lower by Rs. 74.37 Crore. The
 same has been adjusted (net of tax of Rs.25.28 Crore) against brought
 forward balance in Profit & Loss Account.
 
 4.  In the opinion of the Board, the current assets, loans and advances
 are approximately of the value stated if realised in the ordinary
 course of business. The provision for all known liabilities is adequate
 and not in excess of the amount reasonably necessary.
 
 5.  Some of the balances in Sundry Debtors, Sundry Creditors, Advances
 and Deposits are subject to confirmation, reconciliations and
 adjustments if any, which in the opinion of the management will not be
 significant.
 
 6.  Of the unsecured loans, amount repayable within one year is Rs.
 200.00 Crores (2007: Rs 202.50 Crores) and of the Secured Loans amount
 repayable within one year is Rs. 162.24 Crores (2007: Rs. 266.82
 Crores).
 
 7.  Future interest liabilities in respect of assets of the value of
 Rs. 3.16 Crores (2007: Rs. 1.59 Crores) acquired on hire purchase basis
 is Rs. 0.74 Crores (2007: Rs 0.44 Crores).
 
 8.  Interest allocated against fixed assets amounts to Rs. 14.46
 Crores (2007: Rs. 9.38 Crores).
 
 9.  The Company has entered into operating lease arrangements for
 fixed assets and premises. The future minimum lease rental obligation
 under non-cancellable opearting leases in respect of these assets is
 Rs. 636.65 Crores(2007: 423.01 Crores).The Lease Rent payable not later
 than one year is Rs. 296.94 Crores (2007 : 188.93 Crore),repayable
 later than one year but not later than five year is Rs. 339.71 Crores
 (2007 : 234.08) and the repayable later than five years is Rs Nil (2007
 : Nil)
 
 10.  a) During the year. Company has allotted 1,25,40,056 (One Crore
 Twenty Five Lakhs Forty thousand and
 
 Fifty six) fully paid up Equity Shares of the face value of Rs.2/-
 (Rupees Two only) each at a premium of Rs. 498/- (Rupees Four Hundred
 Ninety Eight only) on conversion of Warrants, including 40,00,000
 shares issued on preferential basis to private investors.
 
 b) The company has allotted 100 (One Hundred) fully paid up Equity
 Shares of the face value of Rs. 2 (Rupees Two only) each at a premium
 of Rs. 98/- (Rupees Ninety Eight only) during the year on Rights basis
 which were earlier kept in abeyance.
 
 c) Equity warrants represents amount received against 12651944(One
 crore twenty six Lakhs Fifty One Thousand Nine Hundred Forty Four
 only)warrants issued on a preferential allotment basis,which can be
 converted to same number of equity shares at the option of the holders
 within 18 months from the date of allotment of the warrants at a
 premium of Rs.498 per share.
 
 11. The Company has not received any intimation from suppliers
 regarding their status under the Micro, Small and Medium Enterprises
 Development Act, 2006 and hence disclosures, if any, relating to
 amounts unpaid as at the year end together with interest paid / payable
 as required under the said Act have not been given.
 
 12. Sale of Fixed Assets
 
 During the year,the Company has sold logistic division to Future
 Logistic Solutions Limited for a consideration of Rs 40.00 Crores on
 slump sale basis.
 
 13. During the year the Company has suffered loss on stocks of Rs. 1.04
 Crores due to flooding/fire at a store/ warehouses for which Insurance
 claims have been received /under process.
 
 14.  The Board of Directors, subject to approval of members, have
 recommended a dividend of Rs. 0.60(30%) per equity share. Further in
 view of the proposed bonus issue of Class B Shares (Series 1) carrying
 differential rights, if allotted on or before the book closure date,
 Board recommended, subject to approval of the members, dividend of Rs.
 0.70(35%) per class B Share (Seriesl).
 
 15.  The Company regards the business segment retail as a single
 reportable segment. Accordingly, Segment Information is not being
 disclosed pursuant to the provision of Accounting Standard 1 7 on
 Segment Reporting issued by The Institute of Chartered Accountants of
 India (ICAI).
 
 16.  The previous years figures have been
 reworked,regrouped,rearranged and reclassified wherever necessary.
 Amount and other disclosures for the preceeding year included as an
 integral part of the current year financial statements and are to be
 read in relation to the amounts and other disclosures relating to the
 current year.