1.  COMPANY BACKGROUND
 
 Shoppers Stop Limited (SSL or the Company) was incorporated on 16
 June 1997. The Company is engaged in the business of retailing a
 variety of household and consumer products and books through
 departmental stores. As at 31 March 2011, the Company operated through
 42 such departmental stores located in different cities of India.
 
 2. Retail Turnover in the Profit and Loss account indicates the gross
 volumes of business and operations.
 
                                              (All amounts in Rs. lacs)
 
                                                  Mar-11        Mar-10
 
 3. CONTINGENT LIABILITIES IN RESPECT OF:
 
 a) Guarantee given for loan taken by Joint 
 venture companies from banks                   1,338.57      4,490.00
 
 b) Claims against the Company not 
 acknowledged as debts comprise of:
 
 (i) Disputed Income tax matters in appeal        535.91        245.42
 
 (ii) Disputed sales tax matters in appeal         16.46        428.63
 
 (iii) Disputed Customs Duty                       17.09         24.00
 
 c) Contingent contractual claims                 236.19        236.19
 
 d) Others                                         52.25             -
 
 Note: Future cash outflows in respect of (b) above are determinable
 only on receipt of judgements/decisions pending with various
 forums/authorities.
 
 4.  SERVICE TAX
 
 Pursuant to levy of service tax on renting of immoveable properties
 given for commercial use, retrospectively with effect from 1 June 2007
 by the Finance Act, 2010, the Company has, based on a legal
 advice.challenged the said levy and, inter-alia, its retrospective
 application in various High Courts. An interim stay has been granted by
 various High Courts from recovery of the said service tax and the
 matter is pending. Accordingly, the Company has not provided for
 service tax aggregating to Rs. 1,619 lacs for the retrospective period
 upto 31 March 2010, which will be appropriately recognised on final
 determination.
 
 5.  SEGMENT REPORTING
 
 The Company is primarily engaged in the business of retail trade
 through retail and departmental store facilities in India, which in the
 terms of Accounting Standard 17 on Segment Reporting1, constitutes a
 single reporting segment.
 
 6. RELATED PARTY DISCLOSURES
 
 Names of related parties and description of relationship:
 
 (a) Subsidiaries       Upasna Trading Limited, Shoppers Stop.com 
                        (India) Limited,
 
                        Shoppers Stop Services (India) Limited, 
                        Crossword Bookstores Limited.
 
                        Gateway Multichannel Retail (India) Limited. 
 
                        Hypercity Retail (India) Limited,
                        (w.e.f. 30 June 2010)
 
 (b) Promoter 
 directors having 
 control/significant    C. L. Raheja, Ravi C. Raheja, Neel C. Raheja 
 influence over 
 companies stated 
 in (c) below
 
 (c) Companies in 
 which the persons 
 stated in (b) above   Ivory Properties and Hotels Private Limited, 
                       K. Raheja Corp. Private Limited 
 have control/
 significant 
 influence             K. Raheja Private Limited, Inorbit Malls
                       (India) Private Limited
 
                       Avacado Properties and Trading 
                       India Private Limited, K. Raheja IT Park
                       (Hyderabad) Private Limited
 
                       Trion Properties Private Limited
 
 (d) Joint Ventures    Nuance Group (India) Private Limited
 
                       Timezone Entertainment Private Limited
 
 (e) Key Management 
 Personnel             Executive Director     : Govind Shrikhande
 
                       Non Executive Directors: Chandru L. Raheja 
 
                                                Ravi Raheja Neel Raheja 
 
                                                B. S. Nagesh 
 
                                                Gulu L. Mirchandani
 
                                                Shahzaad Dalal 
 
                                                Nitin Sanghavi 
 
                                                Deepak Ghaisas 
 
                                                Nirvik Singh
 
 7. DERIVATIVES
 
 a) The Company uses foreign currency forward contracts to hedge its
 risks associated with foreign currency exposures relating to the
 underlying transactions and firm commitments. The company does not
 enter into any derivative instruments for trading and speculative
 purposes.
 
 8. ESOP SCHEMES
 
 b) New Schemes Launched
 
 No new employees share based payment plans were formulated during the
 year. The compensation cost of stock options granted to employees is
 calculated using the intrinsic value of the stock options.
 
 c) The weighted average contractual life of the options outstanding is
 4.42 years
 
 9. INTEREST IN JOINT VENTURES:              March-11    March-10
 
 V.  CONTINGENT LIABILITIES                     439.90      161.82
 
 Note: The companys share in the assets, liabilities, income and
 expenses in Nuance Group (India) Private Limited is based on the
 audited financials for the year ended 31 December 2010.
 
 10. EMPLOYEE BENEFITS
 
 The company expects to contribute Rs. 101.05 lacs to its Gratuity plan
 for the next year.
 
 In assessing the Companys Post Retirement Liabilities, the Company
 monitors mortality assumptions and uses up-to-date mortality tables.
 The base being the LIC 1994-96 ultimate tables.
 
 Expected return on plan assets is based on expectation of the average
 long-term rate of return expected on investments of the fund during the
 estimated term of the obligations.
 
 The estimates of future salary increases considered in actuarial
 valuation take account of inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market.
 
 11.  EXCEPTIONAL ITEM
 
 The Board of Directors of Gateway Multichannel Retail (India) Limited
 (Gateway) had in January 2009 decided to discontinue operations and the
 company had therefore made a provision for its investments and loans
 and advances aggregating to Rs. 2,486.40 lacs in the previous year. The
 impairment charge was disclosed as an Exceptional item in the Profit
 and Loss Account. During the year the Company has recovered Rs. 5.10
 lacs from Gateway and has accordingly disclosed the credit as an
 Exceptional item.
 
 12.  The Board of Directors and shareholders of the Company at their
 meetings held on October 29, 2010 and December 23, 2010 respectively
 approved sub-division of equity share of Rs. 10/- each into two equity
 shares of Rs. 5/- each. The Company fixed January 13, 2011 as the
 Record Date, for the said sub-division and as on date, the equity
 shares of the company were sub-divided. Accordingly, the basic and
 diluted EPS for the current and prior year have been computed on the
 basis of the said sub-division.
 
 13 (i) During the year, the Company has simultaneously allotted
 20,00,000 equity shares to Qualified Institutional Buyers (QIBs) and
 40,00,000 equity shares to Promoters pursuant to the conversion of
 optionally convertible warrants for an aggregate issue price of Rs.
 12,980 lacs and Rs. 12,287.20 lacs (Rs. 3,071.80 lacs received in 2010
 being 25% of total price) respectively. The premium received aggregated
 Rs. 24,667.20 lacs.
 
 14. On account of termination of the franchisee agreement with
 Crossword Bookstores Ltd. (CBL), a wholly-owned subsidiary of the
 Company, the operations of Crossword have been handed over to
 Crossword Bookstores Limited with effect from October 1, 2010 at book
 values. Accordingly, figures for the previous year are not comparable
 with those of the current year.
 
 15. The Networth of these companies have been substantially eroded and
 these companies continue to make losses. Based on the business plans of
 these companies and the valuation of businesses by an independent
 valuer, no provision for any loss is currently considered necessary in
 these financial statements.
 
 16a. During the year, the name of the Company was changed from
 Shoppers Stop Limited to Shoppers Stop Limited.  
 
 16b. Figures of the previous year are regrouped, where necessary, to
 conform to those of the current year.