Shoppers Stop
BSE: 532638 | NSE: SHOPERSTOP | ISIN: INE498B01016 | Retail
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Notes to Accounts | Year End : Mar '09 |
1. COMPANY BACKGROUND Shoppers Stop Limited (SSLor 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 2009, the Company operated through 30 such departmental stores located in different cities of India. 2. Contingent liabilities in respect of: a) Guarantee given for loan taken by Joint venture companies from banks. 509.00 361.50 b) Contingent contractual amounts 23.92 0.92 c) Disputed sales tax matters in appeal 4.36 0.07 d) Disputed Customs Duty 2.40 2.40 e) Unpaid service tax (Refer note 33(b)) - 28.20 f) Disputed Income tax matters in appeal 5.16 - 3. SEGMENT REPORTING The company is primarily engaged in the business of retail trade through retail and departmental store facilities, which in the context of Accounting Standard 17 on Segment Reporting constitutes a single reporting segment. Deferred Tax Asset on account of carry forward losses and unabsorbed depreciation has not been recognised on consideration of prudence as set out in Accounting Standard 22 on Accounting for Taxes on Income. 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. The gratuity benefit scheme of the Company is managed by Life Insurance Corporation of India (LIC). The Company is currently awaiting the details of the composition of the plan assets, by category, from the LIC for the current and the previous years and hence the disclosures as required by Accounting Standard 15 on Employee Benefits have not been given, 4. SERVICE TAX a) Pursuant to the amendment of the Cenvat Credit Rules w.e.f. 1 April 2008, as legally advised, the Company has commenced utilizing the accumulated service tax input credit of Rs. 175.06 million. b) Pursuant to the Order of the Delhi High Court on 18 April 2009, which set aside the levy of service tax on rentals of immovable property, the Company has not provided for service tax expense for the year of Rs. 99.04 million. The ruling is however, subject to any proceedings/appeal that may be filed by the Government and Orders thereupon. 5. As at 31 March 2009, the Company has investment and loans and advances relating to Gateway Multichannel Retail (India) Limited (Gateway), a subsidiary company, aggregating to Rs. 248.64 million. The Board of Directors of Gateway, in January 2009, decided to discontinue its catalogue retailing operations as the business did not meet the planned performance levels to support the investments required in the current economic climate. Hence, provision for impairment has been made which is disclosed as an Exceptional Item in the Profit and Loss account. 6. The Company has not received any intimation from the suppliers under the Micro small and Medium Enterprises Development Act, 2006 and therefore 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. 7. Figures of the previous year are regrouped and reclassified wherever necessary to correspond to the figures of the current year. |
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| Source : Religare Technova | |
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