89827ab 9eaf

Great things
grow
f
r
o
m

a

firm
foundation.
ANNUAL REPORT 2012-13
/ st|cr lcurcat|cr c|eates a sc||c lutu|e. W|t| a lcurcat|cr t|at |s
|cctec |r steaclast va|ues arc stau|e cpe|at|r s]stes, success arc
|cwt| |s uut |rev|tau|e.
Icca], we a|e cv|r lc|wa|c at a pace |||e reve| uelc|e. /rc eac| step
cl t||s jcu|re] |as ueer pavec u] cu| steac] lcurcat|cr, cu| stu|c]
va|ues arc cu| scurc uus|ress cce|. 0u| va|ues |eep us a|eac cl t|e
ae, |e|p us ce|||t cu| custce|s arc c|eate a |eat wc|||r
erv||crert lc| cu| pecp|e. 0u| st|cr uus|ress cce| |e|ps us t|ce cve|
c|a||er|r t|es tc ee|e st|cre| arc uette|. |t |e|ps us |rrcvate,
|cw arc acapt tc c|are.
0u| /rrua| Repc|t lc| t|e ]ea| 2012-13 w||| ta|e ]cu t||cu| t|e uu||c|r
u|cc|s cl cu| uus|ress arc s|cw ]cu |cw |eat t||rs ccrt|rue tc |cw
l|c cu| l|||] |cctec lcurcat|cr.
Great things
grow
f
r
o
m

a

firm
foundation.
Auuua| Report 2O12-13 O1
FORMATS
Esp||t, VuSI/|C JE/|S Eu|cpes |ercwrec jearswea| arc
||lest]|e u|arc, ur|tec Cc|c|s cl Berettcr, Jac| c Jcres, Ve|c
Vcca arc uS |c|c a|e just a lew cl t|e ar] u|arcs ava||au|e |r
S|cppe|s Stcp. |r acc|t|cr tc t|e |cst cl suc| |rte|rat|cra|
u|arcs, S|cppe|s Stcp clle|s a w|ce va||et] cl e|c|arc|se
ac|css catec||es urce| |ts ec|us|ve u|arcs SI0|, Kas||s|, l|le,
|aute cu||], E|||ta Dcrate|r, |rSerse, |Jearswea|, Va||c Zerct|
arc Vettc||c ||at|r|, acrst ct|e|s.
0u| uus|ress |s l|||] arc|c|ec ac|css u|t|p|e catec|] lc|ats t|at a|e we|| pcs|t|crec tc ue ar |rt||rs|c pa|t cl cu|
custce|s ||ves. ||c las||cr tc |ce reecs, l|c ucc|s tc |rlart ca|e, l|c ccrc|ete tc c||c| stc|es, S|cppe|s Stcp
ccrt|rues tc p|cv|ce custce|s w|t| urpa|a||e|ec va|ue.
Shoppers Stop
S|cppe|s Stcp |s t|e Ccpar]s l|as||p uus|ress cl
cepa|tert stc|es. |t clle|s custce|s ar |rte|rat|cra|
s|cpp|r erv||crert arc a wc||c c|ass s|cpp|r epe||erce
t||cu| |ts 55 stc|es, |rc|uc|r 2 a||pc|t stc|es, ac|css 21 c|t|es.
S|cppe|s Stcp clle|s a w|ce assc|tert cl rat|cra| arc
|rte|rat|cra| u|arcs ac|css catec||es suc| as las||cr appa|e|,
accessc||es, ccset|cs, pe|lues, |ce arc ||tc|erwa|e.
Ic] |||l|e|, CK Jears, ||erc| Ccrrect|cr, Varc, Cuess,
building blocks
o
I

o
u
r
business
The
homeStop
|ceStcp |s t|e l||st-cl-|ts-||rc p|e|u |ce ccrcept stc|e
l|c S|cppe|s Stcp ltc. |t |as 13 stc|es ac|css 10 c|t|es. |t
clle|s a w|ce |are cl |ce p|ccucts ac|css catec||es a|cr
w|t| sce cl t|e cst |eputec rat|cra| arc |rte|rat|cra|
u|arcs. |t |s a cre-stcp s|cp lc| a|| |ce reecs |ar|r l|c
|ce cecc| tc lu|r|tu|e, uat| accessc||es tc uec|cc
lu|r|s||rs, att|esses tc c|ape||es arc ca|pets tc |ea|t|
ecu|pert, a|| urce| cre |ccl.
Crossword
C|csswc|c |s t|e |eace| |r t|e ||lest]|e ucc|stc|e catec|] w|t| a
ur|cue p|ccuct | cl ucc|s, aat|res, cv|es, CD-R0Vs,
us|c, stat|cre|] arc tc]s. C|csswc|c |as 82 stc|es ac|css 25
c|t|es |r |rc|a. C|csswc|cs cr||re lc|a], www.c|csswc|c.|r
|rc|uces c|e t|ar 70 |ac ucc| t|t|es. |t |as a|sc |rt|ccucec
catec||es |||e tc]s, aes, cv|es arc us|c tc |ts cr||re
stc|e. I|e|e |s a cas|-cr-ce||ve|] se|v|ce as we||. C|csswc|c
p|ars tc |aurc| a C|csswc|c /pp |r t|e ret l|rarc|a| ]ea|.
hyperClTY
|]pe|C|IY |as |ecel|rec t|e epe||erce cl t|e |rc|ar ccrsue|
|r t|e u| uc |ec |eta|| lc|at. |ts clle||rs |rc|uce lccc arc
|cce|], las||cr, e|ect|cr|cs, |ce lu|r|tu|e, |ce reecs,
spc|ts, tc]s arc stat|cre|]. I|e uus|ress cpe|ates a B| Stc|e
B| Sav|rs u]||re arc ce||ve|s cua||t] p|ccucts at a |eat va|ue
a|| urce| cre |ccl. |]pe|C|IY cpe|ates 12 stc|es |r 8 c|t|es cl
Vuua|, Bera|u|u, |ure, /|ecauac, |]ce|auac, B|cpa|,
Ja|pu| arc /||tsa|.
Mothercare 8 Ear|y Learuiug Ceutre (ELC)
S|cppe|s Stcp ltc. (SSl} |as ar ec|us|ve |eta|| a||areert
w|t| Vct|e|ca|e |lC cl uK tc cper arc cpe|ate Vct|e|ca|e arc
ElC s|cp-|r-s|cps |r |rc|a w|t||r S|cppe|s Stcp stc|es.
Vct|e|ca|e, uKs p|e|u |rte|rat|cra| u|arc lc| ate|r|t],
|rlart arc c|||cca|e p|ccucts, |as 10 stc|es cpe|atec u] SSl,
|rc|uc|r 1 starca|cre stc|es, w|t| a p|eserce |r 11c|t|es. Ea||]
lea|r|r Cert|e (ElC}, uKs ruue| cre ecucat|cra| tc] u|arc
lc| c|||c|er aec 0-c ]ea|s, |s a|sc ava||au|e |r se|ect S|cppe|s
Stcp stc|es.
Estee Lauder 6roup of Compauies
S|cppe|s Stcp ltc. (SSl} |as erte|ec |rtc a rcr-ec|us|ve |eta||
a|eeert w|t| wc||c |ercwrec ccset|cs ajc| Estee lauce|
tc cper stc|es lc| |rte|rat|cra| u|arcs |||e V./.C, Estee lauce|
arc C||r|cue |r |rc|a.
S|cppe|s Stcp ltc. |as 27 V./.C stc|es w|t| a p|eserce |r
Vuua|, |ure, Bera|u|u, De|||, /||tsa|, |]ce|auac, Kc||ata,
luc||ara arc C|erra|. I|e|e a|e c stc|es cl Estee lauce|,
|rc|uc|r 1 starca|cre stc|es, |r De|||, Bera|u|u arc Vuua|.
I|e|e a|e 15 stc|es cl C||r|cue, |rc|uc|r s| starca|cre stc|es, |r
Vuua|, |ure, Bera|u|u, De|||, Kc||ata, |]ce|auac arc
C|erra|.
www.shoppersstop.com
S|cppe|s Stcp ltc. |as |eac|ec cut tc custce|s ac|css |rc|a,
arc a|sc tc |R|s, t||cu| |ts e-cce|ce weus|te
www.s|cppe|sstcp.cc. |t ce||ve|s tc c|e t|ar 1000 c|t|es
arc tcwrs ac|css t|e ccurt|]. I|e cr||re s|cpp|r weus|te
clle|s t|e ease arc ccrver|erce tc s|cp lc| |eac|r ||lest]|e
u|arcs l|c ar]w|e|e w|t| secu|e pa]ert cpt|crs.
Time/oue
S|cppe|s Stcp ltc. |as a 33.87 sta|e |r I|etcre
Erte|ta|rert |||vate l||tec, w||c| |s t|e uus|ress cl
cpe|at|r |a||] Erte|ta|rert Cert|es (|ECs}. |t |as 17 ccc|s.
luauce 6roup (ludia) Pvt. Ltd.
I|e Ccpar] arc I|e |uarce C|cup /C, Sw|tte||arc |as |r|ec
a 50.50 jc|rt vertu|e lc| cpe|at|r cut] l|ee stc|es at a||pc|ts.
I||s JV Ccpar], |uarce C|cup (|rc|a} |vt. ltc., cpe|ates a
cut] l|ee stc|e at t|e |rte|rat|cra| a||pc|t |r Bera|u|u.
0ve| t|e ]ea|s, S|cppe|s Stcp |as ccrt|ruec tc |rt|ccuce
ec|t|r rew u|arcs arc cc||ect|crs arc |as c|eatec a
c|lle|ert|atc| t||cu| |ts ec|us|ve arc rcr-ec|us|ve |eta||
a||areerts w|t| wc||c-c|ass u|arcs. I|e |are cl |rc|ar arc
|rte|rat|cra| u|arcs |ave ueer ca|elu||] se|ectec tc eet t|e
ces||es cl t|e cce|r s|cppe|.
BRANDS
S|cppe|s Stcp clle|s a |cst cl |rc|ar arc |rte|rat|cra| u|arcs t|at |ave t|e|ess appea| arc a|e ]et a|wa]s |r s]rc w|t|
t|e |atest t|ercs. /tturec tc t|e u|arc p|||cscp|] cl Sta|t Scet||r |ew, S|cppe|s Stcp leecs t|e reecs cl tcca]s
c|sce|r|r custce|s w|t| tcp-rctc| cua||t] u|arcs t|at a|e asp||at|cra| arc a|wa]s a|e a stateert.
|av|r accu||ec ur|cue |rs||ts t||cu| |ts eters|ve
epe||erce |r t|e |eta|| space, S|cppe|s Stcp |as ueer au|e tc
art|c|pate t|e reecs cl tcca]s s|cppe| arc |as ccrsecuert|]
|rt|ccucec seve|a| p|e|u |rte|rat|cra| u|arcs |r |rc|a uc|
uelc|e ct|e|s. S|cppe|s Stcp |as set a uerc|a|| lc| a t|u|]
wc||c-c|ass s|cpp|r epe||erce.
Evergreen
brands
Sa|t c|ct|es arc accessc||es t|at a|e a pe|lect | cl c|ass|c
arc ccrtepc|a|] st]|e.
I|erc] casua| c|ct|es arc accessc||es uasec cr |cua| las||cr
t|ercs.
E|eart arc c|rate cccas|cr wea| arc accessc||es lc| et|r|c
c||c.
Ccrtepc|a|], t|erc] arc casua| spc|tswea| arc accessc||es
lc| upwa|c|] cu||e |ae-ccrsc|cus er.
|aute cu||] |s a ]cur arc lur|] et|rc-lus|cr u|arc lc| tcca]s
]cur las||cr c|vas. V|v|c |rc|ar cc|cu|s arc ct|ls a|e
las||crau|] captu|ec |r cce|r s|||cuettes arc ces|rs. I|e
||re ccp||ses st]||s| |u|t|s arc t|erc] sa|wa| |aeet arc
cupatta sets as we|| as a c||c |are cl accessc||es.
S|cppe|s Stcp |as raec wc||c lacus s|ta| aest|c arc
us|c ccpcse| /rcus||a S|ar|a| as t|e u|arc auassacc|
|as||cr c pa|t] wea| lc| st]||s| arc l|auc]art er.
|as||crau|e cc|pc|ate wea| arc accessc||es lc| wcer.
|as||cr cer| wea| lc| t|e u|uar ]cut| t|at ep|tc|ses
|rc|v|cua||t].
lc| |aute cu||]. S|e |s rct cr|] a ]cut| |ccr uut |s a|sc ar apt
eap|e cl et|r|c c|ve|s|t], ue |t t||cu| |e| us|c c| pe|scra|
st]|e. S|e pe|lect|] atc|es t|e u|arc va|ues arc pcs|t|cr|r cl
|aute cu||] arc |e| pe|scra| st]|e stateert |||c|s t|e
cce|r|sec et|r|c|t] cl |aute cu||]s ces|rs arc st]|es.
E|eart|] st]||s| ]et p|act|ca| arc cclc|tau|e wcers wea|
lc| spec|a| cccas|crs.
llTERlATl0lAL 8RAl0S
S|cppe|s Stcp erjc]s ar ec|us|ve |eta|| a||areert w|t| t|e
B||t|s| las||cr arc ||lest]|e u|arc /ust|r Reec. urce| t||s, t|e
/ust|r Reec |are cl lc|a| uus|ress wea| lc| er arc wcer
|s ec|us|ve|] ava||au|e at S|cppe|s Stcp stc|es. I|e u|arc a|sc
clle|s sa|t casua| wea| lc| wcer.
I||s Ce|ar u|arc |as ueer u|cu|t tc t|e |rc|ar a||et t||cu|
ar ec|us|ve |eta|| a||areert, |r t|e cepa|tert stc|e
seert, w|t| S|cppe|s Stcp ltc. I|e appa|e| e||u|ts s|r|l|cart
|rte|rat|cra| |rl|uerce |r st]|e arc l|resse arc |t euces u|uar
c||c w|t| |ts aut|ert|c st]|e arc uratc|ec cclc|t.
0ThER 8RAl0S llCLu0E
homeStop
hyperClTY
LOYALTY PROGRAMME
Auuua| Report 2O12-13 1O
Shoppers Stop First Citi/eu Loya|ty Programme
S|cppe|s Stcp ue||eves t|at t|e custce| |s t|e w|c|e arc scu|
cl t|e Ccpar], w||c| |s w|] t||s p|c|ae |as c|e t|ar
2.88 ||||cr |c]a| eue|s w|c ccrt||uute tc cve| 71 cl sa|es.
I|e |||st C|t|ter lc]a|t] ||c|ae |s t|e l||st cl |ts ||rc tc ue
|rst|tutec |r t|e |eta|| |rcust|] |r |rc|a. Icca], |t |s cre cl t|e
cst successlu| |e|at|crs||p arc |c]a|t] p|c|aes |r t|e
|rcust|]. W|at a|es t||s p|c|ae ever c|e spec|a| |s t|at
|t att|acts c|e arc c|e eue|s eve|] ca]. W|t| ar acc|t|cr
cl upwa|cs cl 0.38 ||||cr eue|s cu||r t|e ]ea|, t|e
S|cppe|s Stcp |||st C|t|ter lc]a|t] ||c|ae ccrt|rues tc
|cw.
I|e cuject|ve cl t|e |||st C|t|ter lc]a|t] ||c|ae |s tc ersu|e
custce| ce|||t arc er|arce custce| sat|slact|cr. S|cppe|s
Stcp va|ues t|e leecuac| |t |ece|ves l|c |ts custce|s. Ic t|u|]
|rcw arc urce|starc custce|s, S|cppe|s Stcp ara|]ses t|e
p|cp||eta|] |||st C|t|ter cata cr a ccrt|rucus uas|s. I|e |rs||t
t|us |earec, te|ec |||st |rs||t, |e|ps tc p|ar ta|etec clle|s,
u|arcs arc ccur|cat|crs.
|cste||r arc ru|tu||r |e|at|crs||ps w|t| custce|s |as a|wa]s ueer pa|acurt.
I||s att||uute cl a|wa]s putt|r t|e custce| l||st |as erau|ec S|cppe|s Stcp tc
c|eate a |c]a| u|arc all|r|t]. I||s |as t|ars|atec |rtc a uase cl cve| 2.88 ||||cr |c]a|
custce|s w|c a|e a pa|t cl t|e |||st C|t|ter lc]a|t] ||c|ae.
Loyal customers
t
h
a
t

a
r
e
firmly rooted
to us
First Citi/eu Coutributiou to Sa|es
1O
2O
3O
4O
5O
6O
1O
8O
O.O
2OO9
12
2O1O
15
2O11
13
2O12
12
2O13
11
Crossword 8ool Rewards Programme
Custce| sat|slact|cr arc custce| |c]a|t] ue|r t|e rc. 1
p||c||t] lc| C|csswc|c, I|e C|csswc|c Bcc| Rewa|cs
||c|ae |ewa|cs |ts |c]a| eue|s w|t| pc|rts, c|sccurts,
p|ev|ews cu||r sa|es, evert upcates, rews cr va||cus
upcc|r t|t|es, clle|s arc uc| c|e. eWc|cs, a crt||] e-
rews|ette| w|t| |ev|ews cl rew ucc|s, rews aucut |r-stc|e
everts arc uest se||e| ||sts, |s a||ec tc t|ese eue|s.
C|csswc|c |as accec 50000 p|us eue|s t||s ]ea|, |rc|eas|r
t|e tcta| |c]a|t] uase tc 1 |ac eue|s. I|e Bcc| Rewa|cs
||c|ae ccrt||uutes tc 18 cl sa|es cl C|csswc|c
Bcc|stc|es ltc.
0iscovery C|ub Programme
I|e |]pe|C|IY D|sccve|] C|uu u||rs eve|] custce| |eat
sav|rs, ec|us|ve p|cct|crs, spec|a| p|ev|ews arc a w|c|e |ct
c|e. 0re car ea|r c|sccve|] |ewa|c pc|rts arc |ecee t|e
aa|rst pu|c|ases. I||s |c]a|t] p|c|ae |el|ects |]pe|C|IYs
cc|tert tc clle| |ts custce|s t|e u|t|ate s|cpp|r
epe||erce. |]pe|C|IYs |c]a|t] p|c|ae D|sccve|] C|uu,
|aurc|ec |r 2009, ccrt|rues tc |cw arc |ep|eserts 55.5 cl
sa|es. I|e|e a|e a tcta| cl c.7 |ac eue|s.
Auuua| Report 2O12-13 11
Customer Satisfactiou ludex Scores
l0V O1
63
FE8 O9
81
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1O
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4O
5O
6O
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9O
APRlL 1O
8O
JulE 11
19
Au6 12
8O
MARKETING INITIATIVES
8raud Campaigu 'Start Somethiug lew'
S|cppe|s Stcps u|arc capa|rs |ave a|wa]s ueer c|st|rct|ve
arc ec|au|e. I||s ]ea|, t|e capa|r ccrt|ruec w|t| t|e
u|arc p|||cscp|] cl Sta|t Scet||r |ew. I|e u|arc
capa|r cl S|cppe|s Stcp, w|||st s|cwcas|r ||| las||cr,
|as vc|cec va||cus scc|a| ccrce|rs arc causes |r |ts t]p|ca|
tcrue-|r-c|ee| arre|. I|e va||cus causes accptec |rc|uce
wate| ccrse|vat|cr, use cl |eere| cces cl t|arspc|t arc
ct|e| c|v|c arc scc|a| |ssues. I|e capa|r leatu|es st]||s|
pecp|e |r s|p|e ca]-tc-ca] s|tuat|crs actua||] cc|r scet||r
rew. I||s |as |e|pec tc s]uc||se t|at Sta|t Scet||r |ew
car actua||] t|ars|ate |rtc ear|rlu| act|cr.
Start Somethiug lew Today
I|e Sta|t Scet||r |ew Icca] capa|r |s a se||es cl sa||
acs |r |eac|r puu||cat|crs t|at appea| eve|] I|u|sca] cr p. 3.
I|ese acs p|cv|ce |rte|est|r las||cr t|ercs arc s|cpp|r t|ps
tc custce|s. Vc|ecve|, t|e sae t|p |s ||||||tec at t|e
p|]s|ca| stc|es t||cu| v|sua| e|c|arc|s|r.
Eud of Seasou Sa|e
S|cppe|s Stcp |aurc|ec |ts De|||tlu||] lcw |||ces up Ic 51
0ll Sa|e capa|r w|t| |rrcvat|ve arc c|utte| u|ea||r |ae|].
|r c|ce| tc p|ccte t|e Erc cl Seascr Sa|e, S|cppe|s Stcp
c|altec c|st|rct|ve e|eerts ac|css ec|a p|atlc|s suc| as
||ess, 0utccc|, Rac|c, a|cr w|t| a cec|catec lccus cr Scc|a|
arc D||ta| ec|a.
S|cppe|s Stcp c|eatec ec|us|ve auc|c-v|sua| ccur|cat|crs
cr YcuIuue w||c| ccur|catec t|e cc|e essae cl t||s
capa|r |r a ]cut|lu| arc tcrue-|r-c|ee| arre|.
Vc|ecve|, t|e Sa|e capa|r was suppc|tec u] acve|t|seerts
|r |eac|r puu||cat|crs ac|css c|t|es w|t| S|cppe|s Stcp stc|es.
S|cppe|s Stcp |as a|wa]s a|ec tc c|eate a l|u|tlu| arc erjc]au|e s|cpp|r epe||erce lc| eac| arc eve|] custce|. |r
t|e past ]ea|, S|cppe|s Stcp |rt|ccucec c|utte|-u|ea||r capa|rs, |rrcvat|ve act|vat|crs arc att|act|ve p|cct|crs
t|at |ept custce|s eraec arc ce|||tec.
Creating a fruitful
shopping experience
6ift Cards
|r a u|c tc |evc|ut|cr|se t|e ||tua| cl |lt|r, S|cppe|s Stcp
|aurc|ec t|e pe|lect |lt|r cpt|cr I|e S|cppe|s Stcp C|lt
Ca|c. I|e C|lt Ca|c ersu|es t|at S|cppe|s Stcp custce|s |ave
t|e l|eecc arc l|e|u|||t] tc |rcu|e |r t|e|| pe|scra| c|c|ces
arc p|ele|erces. |t car ue |cacec w|t| a l|e|u|e va|ue as ces||ec
u] custce|s. |t car a|sc ue |eceeec lc| ar] va|ue, t|us
a||r t|e s|cpp|r epe||erce eas] arc ca|el|ee. W|ats
c|e, t|e S|cppe|s Stcp C|lt Ca|c car a|sc ue l|e|u|] |e|cacec
as ar] t|es as |ecu||ec.
Wor|d's Largest Stocliug
Ic ce|eu|ate t|e sp|||t cl C|||stas w|t| |ts custce|s,
S|cppe|s Stcp c|eatec t|e wc||cs |a|est stcc||r w||c| stccc
223 leet ||| w|er easu|ec l|c tce tc cull. I|e stcc||r was
c|sp|a]ec at t|e Va|at| Rcac Jurct|cr |r Bera|u|u. W|t| t||s
|rsta||at|cr, S|cppe|s Stcp |s set tc a|e ar ert|] |rtc t|e
Cu|rress Bcc| cl Wc||c Recc|cs arc t|e l|ca Bcc| cl Recc|cs.
Choose Your 0wu 6ift
S|cppe|s Stcps |c]a| custce|s a|e t|eatec tc arrua|
p|cct|crs t|at a|e ec|us|ve|] c|altec lc| t|e|| uerel|t. C|ccse
Ycu| 0wr C|lt clle|ec custce|s t|e c|arce tc se|ect t|e|| cwr
|lts l|c w|t||r t|e stc|e. |rsteac cl clle||r a p|e-se|ectec |lt,
S|cppe|s Stcp clle|ec |ts |c]a|t] p|c|ae eue|s ucrus
|ewa|c pc|rts cr t|e|| pu|c|ases, w||c| ccu|c ue |eceeec cr
ar] p|ccuct cl t|e|| c|c|ce.
Ic p|ccte t||s clle|, S|cppe|s Stcp c|eatec |rc|as l||st
u|arcec 3D st|eet a|t |rsta||at|cr. I||s cu|||] arc |rrcvat|ve
|r|t|at|ve ere|atec a suustart|a| uutt.
Maleover Marathou
S|cppe|s Stcp c|ar|sec 'Va|ecve| Va|at|crs' |r se|ect c|t|es
w|e|e|r custce|s we|e t|eatec tc ccp||erta|] a|ecve|s
u] p|cless|cra| a|e-up a|t|sts l|c t|e wc||cs l|rest s||rca|e
arc ccset|c u|arcs suc| as C|verc|], S||se|cc, E||tauet|
/|cer, larce, Cue||a|r, C|||st|ar D|c| arc Yves Sa|rt lau|ert,
tc rae a lew. I||s act|vat|cr ave custce|s t|e c|arce tc
epe||erce t|ese |rte|rat|cra| u|arcs.
Suits aud Jaclets Fest
S|cppe|s Stcp c|eatec |rc|as |a|est lc|a| ers jac|et w||c|
stccc at ar |pcs|r |e||t cl 22 leet. I|e jac|et was c|sp|a]ec
at |rc|u|t Va|| |r Vuua| tc p|ccte t|e Su|ts c Jac|ets |est.
S|cppe|s Stcp |as ace ar ert|] |rtc t|e l|ca Bcc| cl
Recc|cs lc| t||s ec|t|r c|eat|cr.
DIGITAL INITIATIVES
Facebool 8 Twitter
S|cppe|s Stcp act|ve|] eraes w|t| custce|s cr |ts pcpu|a|
|aceucc| pae. |t ccrstart|] c|u|rs cut |rte|est|r arc
era|r ccrtert cr |aceucc| tc |eep lars |cc|ec. |t |s ||tt|e
wcrce| t|at S|cppe|s Stcp |as 1.1 ||||cr lars cr |aceucc|,
a||r |t t|e |a|est u|-uc |eta||e| cr |aceucc| |r |rc|a. |t
eraes |ts lars arc lc||cwe|s cr a |ea|-t|e uas|s t||cu|
ccrst|uct|ve c|a|cues, ur|cue p|cct|crs arc |rrcvat|ve
ccrtests suc| as t|e Iweet Stc|e, |ew Yea|. C|ls, etc.
YouTube
S|cppe|s Stcp |as a cec|catec c|arre| cr YcuIuue t|at clle|s
custce|s ar cppc|tur|t] tc epe||erce auc|c-v|sua| ccrtert
c|altec u] t|e u|arc. |t |as c|eatec ec|us|ve auc|c-v|sua|
ccur|cat|crs |ea|c|r va||cus clle|s arc p|cct|crs.
I|ese |rc|uce t|e pcpu|a| c||ta| acs lc| t|e Erc cl Seascr
Sa|e, C|ccse Ycu| 0wr C|lt, |||st C|t|ter Sa|e ||ev|ew, C|lt
Ca|c, etc. t|at |ave a|re|ec rue|cus v|ews.
S|cppe|s Stcp |as a|wa]s ueer at t|e lc|el|crt cl t|e c||ta| |rl|u. ||c sa|tp|cres tc scc|a| retwc||s,
S|cppe|s Stcp |s ar]w|e|e t|e custce| ces||es |t tc ue. Be |t a cu||e app, a |aceucc| |rte|act|cr, a Iw|tte|
ccrtest, c| a YcuIuue v|cec, custce|s car epe||erce S|cppe|s Stcp at t|e e|e leat|e|-tcuc| cl a uuttcr.
Leading
t
h
e
digital

a
n
d
social
media ecosystem
/rct|e| ec|t|r YcuIuue |rrcvat|cr |s t|e S|cppe|s Stcp |cw
tc.. se||es. I||s |s a se||es cl lur, |rst|uct|ve, era|r arc
]cut|-cert||c v|cecs t|at |ve custce|s las||cr arc |cc|r
t|ps. I|e v|cecs |are ac|css tcp|cs suc| as |cw tc c|ess lc| a
pa|t] tc |cw tc t|e a t|e tc |cw tc app|] a|e-up, etc.
Custce|s a|sc |ave t|e c|c|ce tc uu] t|e p|ccucts s|cwcasec
|r t|ese v|cecs v|a t|e e-stc|e. S|cppe|s Stcp |s t|e l||st |rc|ar
|eta||e| arc |rc|ar u|arc tc |ave |aurc|ec suc| a se||es.
luuovative use of 0R 8 AR
S|cppe|s Stcp |as |rt|ccucec va||cus a||et|r |rrcvat|crs
suc| as cep|c]ert cl 0u|c| Respcrse (0R} arc /uertec
Rea||t] (/R} ccces tc c||ta||] er||ver a|| a||et|r
ccur|cat|crs. /uertec Rea||t] |r |rc|a |s st||| rascert arc
S|cppe|s Stcp |s t|e l||st |rc|ar |a|e-lc|at |eta||e| tc |ave
c|eatec ar /uertec Rea||t] set-up lc| |ts Erc cl Seascr Sa|e
capa|r. I|e Sa|e acve|t|seerts ac|css ajc| p||rt
puu||cat|crs leatu|ec ar /R ccce t|at |eace|s ccu|c t||e| u]
us|r a spec|a||] ceve|cpec app t|at ccu|c ue ccwr|cacec l|c
t|e /rc|c|c a||etp|ace c| |Iures Stc|e. W|t| t|e |e|p cl t||s
app, |eace|s ccu|c act|vate ar /R set-up |r w||c| t|e] ccu|c
v|ew e|c|arc|se.
Exc|usive Apps
S|cppe|s Stcp ccrt|rues tc clle| |ts |c]a| custce|s ar
ec|us|ve cu||e app||cat|cr. us|r t||s ta||c|-ace app,
S|cppe|s Stcp |||st C|t|ter eue|s car sw|pe t|e|| ca|c
w|t|cut actua||] |av|r t|e ca|c, c|ec| ca|c ruue| arc ca|c
ceta||s, et |rlc|at|cr cr p|cct|crs arc clle|s |r stc|es, c|ec|
|ewa|c pc|rts arc uc| c|e. I|e |||st C|t|ter Vcu||e app |as
ueer ace ava||au|e ac|css cu||e p|atlc|s suc| as
B|ac|ue||], |||cre arc /rc|c|c.
S|cppe|s Stcp a|sc c|eatec ar ec|us|ve app ca||ec t|e
C|ltBct app. us|r t||s app||cat|cr, custce|s car et |lt|r
|ceas uasec cr ce|ta|r c||te||a suc| as uucet, ae, etc.
REACH
Du||r t|e ]ea|, t|e Ccpar] etercec t||s urpa|a||e|ec
s|cpp|r epe||erce tc rewe| c|t|es arc catc|erts u]
|aurc||r 5 S|cppe|s Stcp stc|es.
Du||r t|e ]ea|, |ceStcp accec 2 stc|es, Vct|e|ca|e accec 3
stc|es, V./.C accec 8 stc|es, C|csswc|c Bcc|stc|es accec 10
stc|es (|rc|uc|r 5 l|arc||se stc|es} arc C||r|cue accec 1 stc|es.
W|e|e p|]s|ca| stc|es a|e rct p|esert, S|cppe|s Stcp |as
|eac|ec cut tc custce|s ac|css |rc|a arc a|sc tc |R|s, t||cu|
|ts e-cce|ce weus|te www.s|cppe|sstcp.cc. |t ce||ve|s tc
c|e t|ar 1000 c|t|es arc tcwrs ac|css t|e ccurt|]. I|e cr||re
s|cpp|r weus|te clle|s t|e ease arc ccrver|erce tc s|cp lc|
Custce|s a|e t|eatec w|t| a ccp|ete sersc||a| epe||erce
w|||e s|cpp|r at S|cppe|s Stcp stc|es. I|e scct||r
l|a|arce cl t|e Beaut] |a|| at t|e ert|arce ese||ses
custce|s as sccr as t|e] step |r. I|e |uu||cus arc
urc|utte|ec |a]cut cl t|e stc|es |e|ps custce|s s|cp at ease,
w|||e t|e pepp] S|cppe|s Stcp Rac|c u|||ters up t|e|| ccc.
I|e ||ue|t] tc t|] cut p|ccucts w|t|cut t|e cu||at|cr cl
pu|c|ase, |||e a|e-up, accs tc t|e cve|a|| s|cpp|r
epe||erce. I|e |r-stc|e cale ersu|es a |el|es||r u|ea|
|r-uetweer s|cpp|r.
S|cppe|s Stcp ccrt|rues tc eterc |ts |eac| tc c|t|es arc tcwrs ac|css |rc|a. W|||e cc|r sc, t|e lccus |ea|rs cr
ce||ve||r t|e uest |r c|ass epe||erce tc custce|s. S|cppe|s Stcp |as ccrve|tec t|e ccrcept cl |eta|| |rtc ar
epe||erce arc ar |rcu|erce.
Spreading
o
u
r
roots far & wide
|eac|r ||lest]|e u|arcs l|c ar]w|e|e w|t| secu|e pa]ert
cpt|crs. W|ats c|e, custce|s w|c s|cp cr||re car ever ava||
l|ee |ce ce||ve|], cas|-cr-ce||ve|] pa]ert cpt|crs arc ut|||se
S|cppe|s Stcp C|lt Ca|cs tcc. |||st C|t|ter Veue|s car ea|r
arc |ecee pc|rts cr t|e|| cr||re pu|c|ases as we||. Custce|s
a|sc |ave t|e cpt|cr tc ec|are p|ccucts pu|c|asec cr||re at
ar] p|]s|ca| stc|e.
S|cppe|s Stcp |as u|cacerec |ts |eac| ever lu|t|e| u] l|||]
estau||s||r |tse|l |r t|e c||ta| space. ||c ar act|ve p|eserce
cr scc|a| retwc|||r weus|tes tc |rt|ccuc|r apps t|at ta|e t|e
epe||erce tc t|e ret |eve|, S|cppe|s Stcp |s cv|r tcwa|c a
c||ta| cr|p|eserce.
'(|rc|uces C|csswc|c, Vct|e|ca|e, |ceStcp
V./.C, C||r|cue arc Estee lauce| cut|ets}
luc||ara
/||tsa|
|rcc|e
/u|arauac
S|||u||
Du|apu|
B|cpa|
|apu|
|as|||
Vap|
uca|pu| Kcta
V|ja]awaca
latu|
V]sc|e
|a||cauac
Kc||ata
C|erra|
Bera|u|u
'
Cu|acr
Ja|arc|a|
Cc|uatc|e
( (
S|cppe|s Stcp |as a|wa]s ueer lccusec cr steac] arc
st|ate|c |cwt|. |ts ep|as|s cr ccst |at|cra||sat|cr,
st|ea||r|r cpe|at|r p|ccesses arc ersu||r custce|
sat|slact|cr |ves |t ar ece |r t|e |rcust|]. S|cppe|s
Stcps st|cr uus|ress cce| ersu|es t|at |t ccrt|rues tc
|cw l|c st|ert| tc st|ert|.
FINANCIAL HIGHLIGHTS
6ross Retai| Turuover
3,OOO
6,OOO
9,OOO
12,OOO
15,OOO
18,OOO
C
A
6
R
~
1
6
21,OOO
8,996
2OO1
12,O69.1
2OO8
14,OO1
2OO9
15,684
2O1O O
18,158
21,925
2O11 2O12
25,591
2O13
24,OOO
21,OOO
Growing
steadily
W|t| a st|cr uus|ress cce| arc a scurc va|ue s]ste,
S|cppe|s Stcp |s we|| ecu|ppec lc| a stau|e |cwt| t|ajectc|]. |r
t|e past ]ea|, t|e Ccpar] |as wc||ec steaclast|] tc ersu|e |t
ccrsc||cates |ts pcs|t|cr as a |eac|r |rc|ar |eta|| |rrcvatc|. I|e
suustart|a| steps ta|er |ave p|cv|cec a uccst tc cve|a|| |cwt|.
|r |Y 2013, S|cppe|s Stcp ltc. ac||evec a C|css Reta|| Iu|rcve|
cl Rs. 25c0 c|c|es, up u] 17.
I|e Ccpar] w|tressec a vc|at||e erv||crert |r t|e l||st |a|l
arc a stau|e erv||crert |r t|e seccrc |a|l cl t|e ]ea|, |eac|r
tc a |||e-tc-|||e |cwt| cl 7.1 lc| t|e ]ea|. I|e Ccpar]
ccrt|rues tc eterc t|e |eta|| lcctp||rt cl |ts va||cus lc|ats |r
t|e ccurt|] w|t| a |eer lccus cr e|st|r as we|| as t|e| || c|t|es.
/t t|e p|est||cus EI Reta|| /wa|cs, S|cppe|s Stcp |ece|vec t|e
Vcst I|ustec Reta||e| cl t|e Yea| |cpu|a| C|c|ce arc
C|csswc|c was t|e p|cuc |ec|p|ert cl t|e /wa|c lc| Va||et|r
Ece||erce.
I|e |rc|ar Reta|| |c|u 2012 ccrle||ec S|cppe|s Stcp w|t| I|e
Vcst /c||ec Reta|| C|cup cl t|e Yea|, |ceStcp w|t| 'I|e
Vcst /c||ec |ce |c|at cl t|e Yea| arc |]pe|C|IY w|t|
I|e Vcst /c||ec |]pe|a||et cl t|e Yea| awa|cs.
/t t|e ct| lc]a|t] Su|t, S|cppe|s Stcp was awa|cec t|e
lc]a|t] ||c|ae cl t|e Yea| |r t|e Reta|| sectc| la|e
|c|at, Best use cl Scc|a| Vec|a tc Er|arce lc]a|t] arc
C|ap|cr cl C|ap|crs lc]a|t] ||c|ae cl t|e Yea|.
/s a |esu|t cl |ts se|v|ces arc |rrcvat|crs, S|cppe|s Stcp |as ueer |crcu|ec w|t| rue|cus |rcust|] accc|aces arc
awa|cs. I|ese awa|cs uea| test|cr] tc t|e va|ues arc ue||els t|at |ave catapu|tec S|cppe|s Stcp tc |ts p|esert
success. Du||r t|e ]ea| 2012-2013, S|cppe|s Stcp was t|e p|cuc |ec|p|ert cl ar] |rcust|] accc|aces, lew cl w||c|
a|e ert|crec ue|cw.
AWARDS
Auuua| Report 2O12-13 2O
S|cppe|s Stcp |ece|vec t|e S||ve| /wa|c l|c DV/| (D||ect
Va||et|r /sscc|at|cr} lc| |ts C|ccse ]cu| 0wr C|lt capa|r.
S|cppe|s Stcp was awa|cec t|e leace|s||p Ccve|rarce
/wa|c |r t|e se|v|ce catec|] at t|e 0|p|c Best ||a
Ccrc|ave 2012.
/t t|e Sta| Reta||e| /wa|cs, S|cppe|s Stcp swept t|e awa|cs
lc| Depa|tert Stc|e cl t|e Yea| arc C|csswc|c Bcc|stc|es
wcr t|e Sta| Reta||e| cl t|e Yea| 2012 Bcc|s arc Vcv|es
Catec|].
S|cppe|s Stcp erte|ec t|e l|ca Bcc| cl Recc|cs lc| c|eat|r
|rc|as |a|est ers lc|a| jac|et.
Consistent efforts
bear fruit
S|cppe|s Stcp was awa|cec t|e Vcst /c||ec Reta||e|,
leace| |r S|cppe|s |rs||t arc Ece||erce |r S|cppe|s |rs||t c
Ccrsue| Be|av|cu| at t|e /wa|cs lc| S|cppe|s arc Ccrsue|
|rs||ts.
/t t|e |0|- |rstc|e /s|a V|sua| Ve|c|arc|s|r c Reta|| Des|r
/wa|cs 2013, S|cppe|s Stcp |ece|vec a Ve||t Ce|t|l|cate |r t|e
Best Stc|e /wa|c >20,000 sc.lt catec|] lc| t|e R- c|t] stc|e |r
Vuua|, a Ve||t ce|t|l|cate |r t|e C|eer |r|t|at|ve /wa|c
catec|] lc| t|e /rc|e|| stc|e arc t|e Cc|c /wa|cs |r t|e Best
W|rccw D|sp|a] catec|] as we|| as t|e Best V|sua|
Ve|c|arc|s|r catec||es.
I|e Ia|ert c |R leace|s||p /wa|cs uestcwec upcr S|cppe|s
Stcp t|e awa|cs lc| Best Ia|ert Varaeert lc| t|e Bau]
Kara|cc ||c|ae', 0|ar|sat|cr w|t| |rrcvat|ve |R
p|act|ces lc| t|e | ||ece |r|t|at|ve arc lea|r|r arc Ia|ert
|r|t|at|ve Ee|c|se lc| leac c leap ||c|ae.
CSR
S|cppe|s Stcp ue||eves |r susta|rau|e ceve|cpert arc |s cc|ttec tc a||r a c|lle|erce tc t|e erv||crert arc
t|e scc|et]. I||cu| |ts ar] |r|t|at|ves t|at c|eate arc p|ccte scc|a| awa|eress, S|cppe|s Stcp a|es a ccrsc|cus
ellc|t tc |rte|ate scc|a| ccrce|rs |rtc t|e ve|] cc|e cl |ts st|ate] arc uus|ress p|ccesses. Sce cl t|e |r|t|at|ves a|e
||stec ue|cw.
So|ar Power luitiative
S|cppe|s Stcp |rt|ccucec a ur|cue ere|] araeert
|r|t|at|ve cl us|r sc|a| pcwe| at |ts /rc|e|| stc|e |r Vuua|.
Sc|a| pare|s |ave ueer |rsta||ec cr t|e |ccl cl t|e stc|e. I|e
30KW ere|] ere|atec l|c t|ese sc|a| pare|s |s ut|||sec tc
pcwe| t|e seccrc l|cc| cl t|e stc|e. I||s |r|t|at|ve rct cr|] a|s
tc ccrse|ve ere|] uut a|sc pe||ts sav|rs cr pcwe| ccsts.
8acl to Earth by homeStop
|ceStcp ccrt|ruec tc clle| t|e ecc-l||erc|] u|arc Bac| tc
Ea|t|. I||s cc||ect|cr |as ueer |rsp||ec u] ratu|e arc t|e
p|ccucts a|e ace cl |uuue| wccc, ceac wccc, C||rese jujuue,
uaucc, jute, ratu|a| l|u|e, |ec]c|ec wccc arc ||rer. 0re car
c|ccse l|c a w|ce |are cl p|ccucts ac|css catec||es |||e
lu|r|s||r, uec ||rer, ||tc|er accessc||es arc |ce cecc|.
Going green
8raud Campaigu 'Start Somethiug lew'
Ca||]|r lc|wa|c t|e u|arcs p|||cscp|] cl Sta|t Scet||r
|ew, t|e u|arc capa|rs cl S|cppe|s Stcp |ave vc|cec
va||cus scc|a| ccrce|rs arc causes |r |ts t]p|ca| tcrue-|r-c|ee|
arre|.
Fouudatiou 0ay ce|ebratiou
I|e |curcat|cr Da] cl S|cppe|s Stcp |s cec|catec tc up|c|c|r
scc|a| causes. Eac| stc|e, |e|cr arc Se|v|ces 0ll|ce |e|ps ar
|C0 cl |ts c|c|ce.
Sa|war Kamee/ 0upatta (SK0) Exchauge offer
I||s |s ar arrua| ec|are clle| t|at S|cppe|s Stcp |as
ccrcuctec lc| ar] ]ea|s |r asscc|at|cr w|t| |C0s |||e Ccrce|r
|rc|a arc Cccrj. Du||r t|e clle| pe||cc |r 2012, custce|s we|e
|rv|tec tc ccrate t|e|| c|c wea|au|e Sa|wa| Kaeet Dupatta
(SKD} sets tcwa|cs t|e cause arc |r tu|r erjc] c|sccurts cr t|e||
rew pu|c|ases cl SKD sets. /|| c|c wea|au|e SKD sets cc||ectec
cu||r t|e ec|are clle| we|e ccratec tc Cccrj.
BOARD OF DIRECTORS
0vIN 8hIkhANE . 8. NAE8h NIvIk 8INh
EEFAk hAI8A8
NIIIN 8ANhAvI 8hAhZAA AIAI
I MI6hANANI NEEI 6. AhEJA AvI 6. AhEJA
6hAN I. AhEJA
60NIENI
C|a||ars Stateert 02c
Bca|c cl D||ectc|s 028
||rarc|a| ||||||ts c Ke] Rat|cs 029
D||ectc|s Repc|t 030
Varaeert D|scuss|cr c /ra|]s|s Repc|t 038
Cc|pc|ate Ccve|rarce Repc|t 053
|rcepercert /uc|tc|s Repc|t 0cc
Ba|arce S|eet 070
Stateert cl ||cl|t c lcss 071
Cas| ||cw Stateert 072
|ctes tc t|e ||rarc|a| Stateerts 073
||rarc|a| |rlc|at|cr cl Suus|c|a|] Ccpar|es 098
Ccrsc||catec ||rarc|a| Stateerts 099
CHAIRMAN'S STATEMENT
I|e ]ea| cre u] |as ueer a ]ea| cl twc c|st|rct |a|ves. W|||st
t|e l||st |a|l was a||ec u] a serse cl eccrc|c s|u|s|ress
arc ccrsupt|cr s|cwccwr, t|e seccrc saw a pa|ac| s||lt
|r eccrc|c sert|ert arc a suustart|a| |p|cveert cr
ccrsupt|cr arc c|sc|et|cra|] spercs. |r ellect, w|||st t|e
l||st |a|l cl t|e ]ea| s|cwec suucuec |cwt|, t|e seccrc |a|l
cl t|e ]ea| |ecc|cec |cuust |cwt| .
Ycu| Ccpar] |as ccrt|ruec tc |ap up |ts stc|e p|eserce,
ac|css t|e ccurt|], |r a|| |ts lc|ats, |r |eep|r w|t| |ts v|s|cr
cl ue|r a |eace| arc p|cree| |r |rc|ar cce|r |eta||. Du||r t|e
]ea|, ]cu| Ccpar] |as |aurc|ec 5 S|cppe|s Stcp
cepa|tert stc|es, 2 |cestcp stc|es, 8 V/C stc|es, 1
C||r|cue stc|es arc 1 Estee Stc|e.
|c| t|e ]ea| 2012-13, ]cu| Ccpar] |as ac||evec |everues cl
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c|e t|ar 3,00,000 scua|e leet |r t|e ]ea| 2012-13.
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Chairman`s
Statement
Reta|| C|cup cl t|e Yea|' at |R| 2012 awa|cs, 'I|e Vcst
/c||ec |ce |c|at cl t|e Yea|', at |R| 2012 awa|cs,
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capa|r, 'Icp C|ass B|arc /wa|c 2012-13' tc S|cppe|s
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S|||||arce arc 'Depa|tert Stc|e cl t|e ]ea|' awa|c |r Sta|
Reta||e|s /wa|c 2012. Wc||c Reta|| Ccr|ess 2012-13, |as
awa|cec ]cu| Ccpar] w|t| 'Best Ia|ert Varaeert /wa|c
lc| B/BY K/|C/R00 |R0CR/VVE', 0|ar|sat|cr w|t|
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tea, 'Best W|rccw D|sp|a]' arc 'Best V|sua| Ve|c|arc|s|r'
tc V|sua| Ve|c|arc|s|r Iea. Ycu| Ccpar] a|sc erte|ec
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|e|te|ate t|e |espect arc ac||at|cr t|at ]cu| Ccpar]
ccarcs |r t|e |rcust|] arc acrst |ts pee|s.
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suppc|t cl ]cu| Ccpar]s custce|s, s|a|e|c|ce|s,
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Advocatos 8
(` in lacs)
Profitability Statement 201 2-1 3 201 1 -1 2 201 0-1 1 2009-1 0 2008-09
No. of St ores 1 04 91 97 93 72
Income
Gross Ret ail Sales 256,050 218,919 187,344 159,845 141,298
Less: Value Added Tax 1 2,074 10,505 8,960 6,857 6,438
Gross Ret ail Sales (Net of t axes) 243,976 208,414 178,384 152,988 134,860
Ot her Operat ing & Miscellaneous Income 3,249 2,799 2,412 2,435 2,555
247,225 211,213 180,796 155,423 137,415
Expenditures
Cost of goods sold 1 59,065 136,775 116,554 102,376 90,034
Employee cost s 1 6,1 06 12,764 9,898 8,759 8,588
Operat ing and administ rat ive expenses 58,973 47,369 39,132 32,938 33,868
234,1 44 196,908 165,584 144,073 132,490
EBIDTA 1 3,081 14,305 15,211 11,351 4,924
Int erest and finance charges 1 ,907 752 734 1,869 2,560
Depreciat ion 5,075 3,772 3,100 3,103 6,313
Profit before except ional it ems and Tax 6,1 00 9,781 11,377 6,379 (3,949)
Except ional It ems 74 (5) (188) 2,486
Profit Before Tax 6,026 9,781 11,383 6,567 (6,436)
Profit Aft er Tax 3,91 7 6,426 7,518 5,023 (6,372)
Balance Sheet items
Share Capit al 4,1 49 4,128 4,108 3,491 3,487
Opt ionally Convert ible Warrant s 3,072
Reserve & Surplus 65,233 61,722 55,702 24,326 19,822
Loan Funds 32,934 25,907 14,549 19,935 20,776
Deferred Tax (Liabilit y)/ Asset s (625) (23) 325 455
Capit al Employed 1 02,941 91,780 74,359 50,824 44,085
Fixed Asset s 48,336 44,659 34,561 29,867 25,873
Net Working Capit al 21 ,51 0 18,700 15,754 8,534 8,467
Profit & Loss Ratios
Sales (Chain level grow t h) 1 7.0% 19.0% 23.0% 10.0% 15.9%
Sales (Like t o Like grow t h) 7.4% 6.5% 16.7% 3.7% 1.2%
Gross Profit Margin 33.2% 32.7% 33.0% 31.7% 31.7%
Operat ing Expenses Rat io 29.3% 27.5% 26.2% 26.1% 30.0%
Operat ing Margin (EBIDTA) (Before except ional it em) 5.1 % 6.5% 8.1% 7.1% 3.5%
PBT Margin before except ional it em 2.4% 4.5% 6.1% 4.0% -2.8%
PAT Margin 1 .5% 2.9% 4.0% 3.1% -4.6%
Int erest Coverage 3.90 5.23 8.85 4.72 0.98
Balance Sheet Ratios
Debt ors No. of Days 3 3 3 3 3
Credit ors No. of Days 90 86 86 93 94
St ock Turnover Rat io 2.6 2.7 3.7 3.5 4.0
Current Rat io 1 .5 1.5 1.4 1.3 1.5
Asset s Turnover Rat io 2.7 2.7 3.0 3.4 3.1
Debt Equit y Rat io 0.5 0.4 0.2 0.6 0.9
Return to Investors
Ret urn on Net w ort h 1 1 .8% 16.8% 26.7% 30.4% -5.2%
Ret urn on Capit al Employed 8.2% 12.7% 19.3% 17.4% -3.0%
Book Value Per Share (in `) 83.81 79.89 75.71 88.58 66.85
EPS (t aking equit y share up t o FY 2009-10 at `
10/ - each and t hereaft er at ` 5/ - each) (In `)
Basic 4.7 7.8 9.5 14.4 (18.3)
Dilut ed 4.7 7.8 9.4 14.3 (18.3)
Cash EPS 1 0.86 12.37 13.44 23.30 (0.17)
Dividend Per Share 0.75 0.75 0.75 1.50
Note: Number of st ores includes t he Shoppers St op Depart ment st ores and Specialit y St ores (viz Home St op, Mot hercare,
Crossw ord Bookst ores, Arcelia, Mac, Clinique, Est ee Lauder & Airport Business).
Note: Figures have been regrouped for Present at ion purpose.
Financial Highlight s & Key Rat ios Shoppers St op Lt d.
Annual Report 2012-13 | 29
Dear Members,
Your Direct ors present herew it h 16
t h
Annual Report on t he business and operat ions of t he Company t oget her w it h t he Audit ed St at ement s
of Account s for t he year ended March 31, 2013.
Financial Performance
( in lacs)
Year ended Year ended
Particulars March 31 , 201 3 March 31, 2012
Retail Turnover
Ow n merchandise (including concession sales) 227,048.25 194,276.55
Consignment merchandise 26,1 1 1 .84 22,289.34
Ot her Ret ail operat ing income 2,809.26 2,681.47
255,969.35 219,247.36
Less: Value Added Tax 1 2,073.84 10,505.10
Less: Cost of consignment merchandise 1 8,306.59 15,771.75
225,588.92 192,970.51
Ot her Income 1 ,721 .47 1,868.76
227,31 0.39 194,839.27
Profit before Depreciat ion & Tax 1 1 ,1 00.34 13,552.94
Less: Depreciat ion 5,074.71 3,772.24
Profit before Tax 6,025.63 9,780.70
Less: Provision for Tax 2,1 08.78 3,354.78
Profit aft er Tax 3,91 6.85 6,425.92
Add: Balance brought forw ard from previous year 1 4,51 6.00 9,131.05
Amount available for Appropriat ion 1 8,432.85 15,556.97
Appropriation
Proposed Dividend (incl. Dividend Dist ribut ion Tax) 728.1 2 719.67
Transfer t o General Reserve 1 95.84 321.30
Balance carried forw ard 1 7,508.89 14,516.00
Performance Review
During t he year under review, your Company has opened 5 depart ment al st ores i.e. one st ore each at Pune, Jalandhar, Coimbat ore and
t w o st ores at Bengaluru t aking it s chain of st ores t o 55 st ores (including t w o airport st ores) spread across India. Furt her, t he Company
has also opened t w o Home St op at Coimbat ore and Chennai t aking it s t ally t o 13 st ores.
The revenue of t he Company is ` 227,310.39 lacs (previous year ` 194,839.27 lacs), regist ering a grow t h of 16.67% y-o-y basis. The net
Profit achieved w as ` 3,916.85 lacs (previous year `. 6,425.92 lacs).
Dividend
Your Direct ors are pleased t o recommend a dividend of ` 0.75 per equit y share of ` 5 each. (Previous year ` 0.75 per equit y share of
` 5 each). The payment of dividend is subject t o approval of t he members in t he ensuing Annual General Meet ing.
Awards and Recognition
As in t he past years, aw ards and recognit ions w ere conferred on your Company by leading organisat ions during t he year under review :
Some of t hem are:
Dur c B|acst|eet at Rc|ta Cc|pc|ate /wa|cs 2011.
Shoppers St op Lt d. Direct ors' Report
'Leace|s||p Ccve|rarce /wa|c' |r se|v|ce catec|] at 0|p|c Best ||a Ccrc|ave 2012.
S||ve| /wa|c lc| 'C|ccse ]cu| 0wr C|lt' capa|r c] DV/|.
Vcst /c||ec Reta|| C|cup cl t|e Yea| arc Vcst /c||ec |ce |c|at cl t|e Yea| lc| |ceStcp at |R| 2012.
Icp C|ass B|arc /wa|c 2012-2013 c] |at|cra| Ecucat|cr c |uar Rescu|ce Deve|cpert 0|ar|sat|cr.
|c. 1 Scc|a| |et Wc|t| Ccpar] cr |aceccc| c] |c|ture Vaat|re (|rc|a}. Rar||r lc| t|e Ccpar] |as |p|cvec l|c Rar| 297
t o Rank 276.
Vcst I|ustec Reta||e| cl t|e Yea| |cpu|a| c|c|ce at EI Reta|| /wa|cs.
I|e ot| Lc]a|t] Su|t ccrle||ec t|e Ccpar] w|t| lc||cw|r awa|cs.
1. Lc]a|t] ||c|aes cl t|e Yea| Reta|| La|e |c|at
2. Best use of Social Media t o Enhance Loyalt y
3. C|ap|cr cl C|ap|crs Lc]a|t] ||c|aes cl t|e Yea|
Best Vcc||e Va||et|r Capa|r at |rc|ar D||ta| Su|t (|cstec c] |/V/|}.
Wc||c |RD Ccr|ess ccrle||ec t|e Ccpar] w|t| lc||cw|r awa|cs.
1. Most Innovat ive init iat ive Aw ard for Goodie box
2. Best Talent Management Aw ard for Baby Kangaroo Programmes
3. Organisat ion w it h innovat ive HR pract ices I Pledge
4. Learning and Talent Init iat ive Exercise for Lead & Leap Programmes.
Best 0r||re Reta||e| cl t|e Yea| (Depa|tert Stc|e} c] EI |0W.
|0| |rstc|e /s|a arc V|sua| Ve|c|arc|s|r c Reta|| Des|r /wa|cs 2013 ccrle||ec t|e Ccpar] w|t| lc||cw|r awa|cs.
1. Ve||t /wa|c Best Stc|e /wa|c > 20,000 sc. lt. R-c|t] Stc|e
2. Ve||t /wa|c C|eer |r|t|at|ve /wa|c /rc|e|| stc|e
3. Cc|c /wa|c Best W|rccw D|sp|a]
1. Cc|c /wa|c Best V|sua| Ve|c|arc|s|r
Credit Rating
During t he year, India Rat ings & Research Privat e Limit ed (A Fit ch Group Company) has assigned t he follow ing credit rat ings:
1. '||D /1' lc| Cce|c|a| |ape| ||c|aes cl ` 500 million.
2. '||D /1' lc| S|c|t Ie| Dect ||c|aes cl ` 500 million.
During t he year, Credit Analysis & Research Limit ed has aw arded t he follow ing credit rat ings:
1. CARE A1 (Non Fund Based) and CARE A (Fund Based) for Bank Facilit ies of ` 461.50 crores (enhanced from ` 401.50 crores).
2. CARE A1 for Commercial Paper issue/ Short Term Debt (Series I) issue of t he Company, aggregat ing t o ` 100 crores.
3. CARE A1 for Commercial Paper issue/ Short Term Debt (Series II) issue of t he Company, aggregat ing t o ` 40 crores.
4. CARE A for Non Convert ible Debent ures issue of ` 100 crores.
Finance
Your Company cont inues w it h various init iat ives for bringing dow n t he cost of borrow ings w hich includes applicat ion of short -t erm
inst rument s like commercial paper, w orking capit al demand loans w it hin w orking capit al borrow ing, long t erm loans for expansion at
compet it ive t erms, so as t o have funds at compet it ive cost .
Employees Stock Option Plan
The grant of st ock opt ions t o employees is a mechanism t o align t he int erest of employees w it h t hose of t he Company, t o provide t hem
w it h an opport unit y t o share t he grow t h of t he Company and also t o fost er t he long-t erm commit ment . Your Company has formulat ed
arc ces|rec Ep|c]ees Stcc| 0pt|cr ||ar Sc|ee lc| |ts arc |ts sucs|c|a|]'s ep|c]ees arc cpt|crs we|e |artec |r accc|carce w|t|
Securit ies and Exchange Board of India (Employees St ock Opt ion Scheme and Employees St ock Purchase Scheme) Guidelines, 1999, as
amended. The Compensat ion/ Remunerat ion Commit t ee of t he Company administ er and monit or t he same.
During t he year under review, t he Company has grant ed 200,000 Employee St ock Opt ions at a grant price of ` 297/ - per opt ion t o t he
specified employees of t he Company and it s subsidiary Companies.
During t he year under review, t he Company has allot t ed 417,383 equit y shares of ` 5 each on exercise of vest ed opt ions by cert ain
employees under t he said ESOP Schemes.
The part iculars of Employees St ock Opt ion Plan (ESOP) Schemes, as required by SEBI (Employee St ock Opt ion Scheme and Employee
St ock Purchase Scheme) Guidelines, 1999, as amended, are appended herew it h and forms part of t his Report .
Subsidiary Companies and Consolidated Financial Statements
In accordance w it h t he Account ing St andard AS-21, t he consolidat ed financial st at ement s form part of t his Annual Report . These
consolidat ed financial st at ement s provide financial informat ion about your Company and it s subsidiaries as a single ent it y.
Minist ry of Corporat e Affairs, Government of India vide General Circular No : 2/ 2011 dat ed February 8, 2011, has grant ed general
exempt ion under Sect ion 212 of t he Companies Act , 1956, t o t he holding companies, from at t aching t he specified document s of it s
subsidiary companies, as referred in Sect ion 212(1) of t he said Act , w it h it s Balance Sheet , on fulfillment of cert ain condit ions. The
Company has fulfilled t hese specified condit ions and accordingly, t he said document s of subsidiary companies are not at t ached t o t he
financial st at ement s of t he Company. A summary of t he financial performance of t he subsidiary companies is given in t his Annual Report .
The annual account s of t he subsidiary companies and t he relat ed det ailed informat ion are made available t o shareholders of t he Company
and subsidiary companies seeking such informat ion. The Annual Account s of subsidiary companies are also open for inspect ion by any
member at t he regist ered office of t he Company and of t he subsidiary companies.
Human Resources
The Company cont inued t o creat e a product ive, learning and caring environment by implement ing robust and comprehensive HR processes
and t aking new init iat ives t o furt her align it s Human Resource policies t o meet t he grow ing needs of it s business. People development
cont inues t o be a key focus area in t he Company. Special designed t raining modules for t he front line employees are being delivered from
t ime t o t ime t o meet t he t raining needs of t he employees. Human relat ions remained cordial t hroughout t he year. During t he year, your
Company organised various t raining programmes.
As on dat e of t he Balance Sheet , t he Company had a t ot al of 6,052 Cust omer Care Associat es.
Deposits
During t he year under review, t he Company has not accept ed any deposit under Sect ion 58A of t he Companies Act , 1956, read w it h
Companies (Accept ance of Deposit s) Rules, 1975. No amount of principal or int erest w as out st anding as on t he Balance Sheet dat e.
Auditors
Ycu| Ccpar]'s Statutc|] /uc|tc|s, De|c|tte |as||rs c Se||s, C|a|te|ec /cccurtarts, Vuca|, w||| |et||e at t|e ccrc|us|cr cl t|e ersu|r
Annual General Meet ing. Deloit t e Haskins & Sells have sought t he re-appoint ment and have confirmed t hat t heir re-appoint ment , if made,
shall be w it hin t he limit s laid dow n under Sect ion 224(1B) of t he Companies Act , 1956.
The Audit Commit t ee and t he Board of Direct ors recommend t he re-appoint ment of Deloit t e Haskins & Sells, Chart ered Account ant s, as
t he St at ut ory Audit ors of t he Company.
Directors
In accordance w it h t he provision of t he Companies Act , 1956 and Art icles of Associat ion of t he Company, Mr. Gulu Mirchandani and
Mr. Deepak Ghaisas, Direct ors of t he Company, ret ire by rot at ion at t he ensuing Annual General Meet ing and being eligible, offer
t hemselves for re-appoint ment .
A brief part icular of Mr. Gulu Mirchandani and Mr. Deepak Ghaisas is annexed t o t he Not ice convening t he Sixt eent h Annual General
Meet ing in accordance w it h t he list ing agreement ent ered int o w it h t he St ock Exchanges.
Corporate Governance
The Company has t aken adequat e st eps t o ensure t hat t he condit ions of Corporat e Governance as st ipulat ed in Clause 49 of t he list ing
agreement w it h t he St ock Exchanges are complied w it h. A separat e sect ion on Corporat e Governance and Audit ors Cert ificat e is annexed
heret o and forms part of t his Report .
Compliance with the Code of Conduct
The Company had evolved and adopt ed a Code of Conduct for it s Board of Direct ors and it s management personnel based on t he
principles of good corporat e governance and best management pract ices. The declarat ion of compliance w it h t he Code of Conduct has
been received from t hem. The Code is available on t he w ebsit e of t he Company. A cert ificat e t o t his effect from Mr. Govind Shrikhande,
Managing Direct or forms part of t his Report .
Demat Suspense Account Unclaimed Shares
As on dat e t here are 13 shareholders, holding 700 Equit y Shares of ` 5/ - each (post sub-division) allot t ed in Init ial Public Offering of 2005,
lying in t he escrow account due t o non-availabilit y of t heir correct part iculars. Despit e various reminders t o t hem, by Karvy Comput ershare
Privat e Limit ed, our Regist rar and Share Transfer Agent , no response has been received. As a result , t he said unclaimed shares have
ceer c|ec|tec tc 'S|cppe|s Stcp Ltc. urc|a|ec S|a|es Deat Susperse /cccurt' |r v|ew cl ccp||arce cl C|ause 5/ cl t|e ||st|r
agreement . Such shareholders may approach t he Company w it h t heir correct part iculars and proof of t heir ident it y for credit ing requisit e
shares from Demat Suspense Account t o t heir individual Demat Account . During t he year under review, no shares w ere t ransferred from
t he suspense account t o any of t he aforesaid shareholders. The vot ing right s on t hese shares shall remain frozen t ill t he right ful ow ner of
such shares claims t he shares.
Conservation of Energy, Technology absorption and Foreign Exchange earnings & outgo
The Company is engaged in t he cont inuous process of energy conservat ion t hrough improved operat ional and maint enance pract ices. The
brief of t he part iculars in respect of various st eps and init iat ives t aken regarding conservat ion of energy and t echnology absorpt ion and it s
disclosure as st ipulat ed by t he Companies (Disclosure of Part iculars in t he Report of t he Board of Direct ors) Rules, 1988 is as under:
1. /|| t|e Stc|e ur|t a|rterarce |eac arc stc|e arae|s we|e ace awa|e accut ere|] ccrsupt|cr cl t|e|| stc|e as pe| t|e
connect ed load. Based on t he connect ed load and operat ing hours, budget ed energy consumpt ion is given t o each st ores and
pract ice of t aking daily logs and cross-checking t he daily consumpt ion w it h t he budget ed unit s is adopt ed. This helps in curbing
t he unw ant ed consumpt ion, mot ivat ing users t o t ake all t he possible measures t o save t he energy and helps in point ing out t he
discrepancies in t he energy consumpt ion pat t ern and correct ive act ion t o eliminat e t he discrepancies.
2. Cont rolled t he energy consumpt ion of HVAC syst em by opt imising t he t emperat ure inside t he st ores (24C). This drive is t he major
cont ribut or for t he energy conservat ion for t he st ores.
3. Opt imised light ing consumpt ion by st rict ly cont rolling t he operat ing hours as per t he usage pat t ern. Colour coding is follow ed for
c|st|ru|s||r t|e c|lle|ert |||t|r (ee|erc], s|cw w|rccw, s|rae's, l|cc| |||t|r, |rc||ect |||t|r} sw|tc|es, sc t|at ere|]
usage can be opt imised.
4. Eliminat ed t he unw ant ed night consumpt ion and rest rict ed usage of t he night light ing during night w ork.
5. Inst alled capacit or banks t o maint ain t he pow er fact or t o reduce t he losses and avail PF incent ive t hereby receiving 5% t o 7%
incent ive on t he energy bills.
o. I|ese cuu|at|ve ellc|ts |esu|tec |r t|e sav|r cl 2,121,330 ur|ts (Ccst ` 224 lacs) cumulat ively by consist ent monit oring and
cont rolling t he consumpt ion at opt imum level as compared t o t he consumpt ion of t he last year.
7. Company has also inst alled solar panels in Andheri St ore t o reduce energy cost and help reduce pollut ion.
8. Company has also finalised t he supplier of Wind Pow er for t w o of it s st ores in Maharasht ra. This should help reduce t he pow er cost
of t hese st ores subst ant ially.
The Company earns Foreign Exchange on sale of it s merchandise t o it s cust omers. Foreign Exchange out go during t he year included
purchase of capit al goods, merchandise, professional fees, et c. The foreign exchange earnings during t he year w as ` 5,393.36 lacs
(previous year ` 4,704.40 lacs), w hereas Foreign Exchange out go w as ` 4,821.10 lacs (previous year ` 3,723.44 lacs).
Particulars of Employees
The part iculars of employees as required under Sect ion 217(2A) of t he Companies Act , 1956, read w it h Companies (Part iculars of
Employees) Rules 1975, as amended, forms part of t his Report . How ever, in pursuance of Sect ion 219(1)(b)(iv) of t he Companies
Act , 1956, t he report and account s are being sent t o all shareholders of t he Company, excluding t he aforesaid informat ion. The aforesaid
informat ion is also available for inspect ion at t he Regist ered Office of t he Company during it s w orking hours. Any shareholder int erest ed
in such part iculars may inspect t he same.
Directors Responsibility Statement
Pursuant t o Sect ion 217 (2AA) of t he Companies Act , 1956, t he Board of Direct ors confirm t hat :
1. In t he preparat ion of annual account s, t he applicable account ing st andards had been follow ed along w it h proper explanat ion relat ing
tc ate||a| cepa|tu|es,
2. They have select ed such account ing policies and applied t hem consist ent ly and made judgment s and est imat es t hat are reasonable
and prudent so as t o give a t rue and fair view of t he st at e of affairs of t he Company as at March 31, 2013 and of t he profit of t he
Ccpar] lc| t|e ]ea| ercec cr t|at cate,
3. They have t aken proper and sufficient care for t he maint enance of adequat e account ing records in accordance w it h t he provisions
of t he Companies Act , 1956 for safeguarding t he asset s of t he Company and for prevent ing and det ect ing frauds and ot her
|||eu|a||t|es, arc
1. I|e] |ave p|epa|ec t|e arrua| acccurts cr a 'c|r ccrce|r' cas|s.
Auditors Report
The Board has duly examined t he St at ut ory Audit ors report t o account s and t he clarificat ions, w herever necessary, have been included in
t he Not es t o Account , sect ion of t his Annual Report .
Acknowledgement
Your Direct ors w ish t o convey t heir appreciat ion t o all cust omers, business part ners, suppliers, banks and financial inst it ut ions for t heir
invaluable support and look forw ard t o cont inued support in t he fut ure. Your Direct ors place on record t heir sincere appreciat ion for t he
s|r|l|cart ccrt||cut|crs ace c] a|| t|e asscc|ates at a|| |eve|s, t||cu| t|e|| cec|cat|cr, |a|c wc|| arc cc|tert tcwa|cs t|e |cwt|
of t he Company.
The Direct ors also acknow ledge t he confidence and fait h reposed by Shareholders in t he Company and look forw ard t o having t he same
in fut ure as w ell.
For and on behalf of the Board of Directors
Chandru L. Raheja
April 30, 2013 Chairman
Cert ificat e of Compliance w it h t he code of conduct for t he financial year 2012-13
I, Govind Shrikhande, Managing Direct or of t he Company, hereby declare t hat t he Company has adopt ed a Code of Conduct for it s Board
Members and it s management personnel and t hey have affirmed compliance w it h t he said Code of Conduct .
For Shoppers Stop Limited
Govind Shrikhande
Cust omer Care Associat e &
April 30, 2013 Managing Direct or
Annexure t o t he Direct ors' Report
Information required to be disclosed under SEBI (ESOS and ESPS) Guidelines, 1 999 as on March 31 , 201 3
Description ESOP 2008 - 1 * ESOP 2008 - 2* ESOP 2008 - 3 ESOP 2008 - 4
Opt ions Grant ed 1,032,800 400,000 189,382 200,000
Dat e of Grant 29.04.2009 24.03.2010 29.04.2011 09.06.2012
The pricing formula The opt ions are
grant ed t o eligible
employees at
t he closing price
of t he Equit y
Shares of t he
Company at BSE
on t he w orking
day immediat ely
preceding t he
dat e of grant .
The opt ions w ere
grant ed at an
exercise price of
` 55/ -
The opt ions are
employees at
t he closing price
of t he Equit y
Shares of t he
Company at BSE
on t he w orking
day immediat ely
preceding t he
dat e of grant .
The opt ions w ere
grant ed at an
exercise price of
` 191/ -
The opt ions are
employees at
t he closing price
of t he Equit y
Shares of t he
Company at BSE
on t he w orking
day immediat ely
preceding t he
dat e of grant .
The opt ions w ere
grant ed at an
exercise price of
` 336/ -
The opt ions are
employees at
t he closing price
of t he Equit y
Shares of t he
Company at BSE
on t he w orking
day immediat ely
preceding t he
dat e of grant .
The opt ions w ere
grant ed at an
exercise price of
` 297/ -
Opt ions vest ed 958,740 360,300 47,553 -
Opt ions exercised and t ot al number of Equit y
Shares arising as a result of exercise of opt ions
898,220 157,300 1,223 -
Opt ions lapsed/ Cancelled 74,060 39,700 36,833 22,090
Variat ion of t erms of opt ions - - - -
Money realised by exercise of opt ions (in `) 49,402,100 30,044,300 410,928 -
Tot al number of opt ions in force 60,520 203,000 151,326 177,910
Options granted to Senior Management personnels
Govind Shrikhande The Company has not grant ed opt ions during t he current
financial year under t hese ESOP schemes
13,750
Options granted to any employee during the year amounting to 5% or more of options granted during the year.
Govind Shrikhande The Company has not grant ed opt ions during t he current
financial year under t hese ESOP schemes
13,750
Options granted to any employee equal to or exceeding 1 % of the issued capital of the Company at the time of grant.
No such opt ions have been grant ed
Dilut ed Earnings Per Share (EPS) pursuant t o
issue of shares on exercise of opt ion calculat ed
in accordance w it h (AS) 20 Earnings Per Share.
The dilut ed EPS of t he Company calculat ed aft er considering t he effect of pot ent ial
equit y shares arising on account of exercise of opt ions is ` 4.71 per share.
Shoppers St op Lt d.
Annexure t o t he Direct ors' Report
Where t he Company has calculat ed t he
employee compensat ion cost using t he int rinsic
value of t he st ock opt ion, t he difference bet w een
employee compensat ion cost so comput ed and
t he employee compensat ion cost t hat shall have
been recognised if it had used t he fair value of
t he opt ion, shall be disclosed. The impact of t his
difference on profit s and on EPS of t he Company
shall also be disclosed.
Had t he Company follow ed fair value met hod for account ing t he st ock opt ion
compensat ion, t he compensat ion expenses w ould have been higher by ` 202.35
lacs. Consequent ly profit aft er t ax w ould have been low er by ` 202.35 lacs and
t he basic EPS of t he Company w ould have been ` 4.49 per share (low er by
` 0.24 per share) and t he dilut ed EPS w ould have been ` 4.47 per share (low er
by ` 0.24 per share).
Weight ed average exercise prices and w eight ed
average fair value of t he opt ions shall be
disclosed separat ely for opt ions w hose exercise
price eit her equals or is less t han t he market
price of t he st ock.
The Company has not grant ed opt ions during t he current
financial year
Exercise price is
` 297 per opt ion
which equals t he
a||et p||ce, t|e
fair value is
` 118.03 per opt ion
A descript ion of t he met hod and significant
assumpt ion used during t he year t o est imat e
t he fair values of opt ions.
The Company has not grant ed opt ions during t he current
financial year
Black Scholes
Opt ion Pricing
model using
Volat ilit y of
46.89%, risk free
rat e of 8.06%,
expect ed life
of 3.85 years,
dividend yield of
0.25% and st ock
price of ` 296.85.
* The Equit y Share of t he Company w as sub-divided from face value ` 10/ - each int o t w o Equit y Shares of ` 5/ - each w.e.f. January
13, 2011, consequent ly t he opt ions and it s relat ed informat ion has been adjust ed.
Cert ificat ion by MD & CFO
To,
The Board of Direct ors
Shoppers St op Limit ed
Eureka Tow ers,
B-Wing, 9t h Floor,
Mindspace, Link Road,
Malad (West ),
Vuca| 100 0o1
Dear Sirs,
We hereby cert ify t hat :
(a) We have review ed t he f inancial st at ement s and t he cash f low st at ement f or t he year and t hat t o t he best of our know ledge
and belief :
i. t hese st at ement s do not cont ain any mat erially unt rue st at ement or omit any mat erial fact or cont ain st at ement t hat might
ce |s|eac|r,
||. t|ese stateerts tcet|e| p|esert a t|ue arc a la|| v|ew cl t|e Ccpar]'s alla||s arc a|e |r ccp||arce w|t| e|st|r
account ing st andards, applicable law s and regulat ions.
(b) There are, t o t he best of our know ledge and belief, no t ransact ion ent ered int o by t he Company during t he year w hich are fraudulent ,
|||ea| c| v|c|at|ve cl t|e Ccpar]'s ccce cl ccrcuct.
(c) We accept responsibilit y for est ablishing and maint aining int ernal cont rols for financial report ing and t hat w e have evaluat ed t he
effect iveness of t he int ernal cont rol syst ems of t he Company pert aining t o financial report ing and w e have disclosed t o t he audit ors
and t he Audit Commit t ee, deficiencies in t he design or operat ion of such int ernal cont rols, if any, of w hich w e are aw are and t he
st eps w e have t aken or propose t o t ake t o rect ify t hese deficiencies.
(d) We have indicat ed t o t he audit ors and t he Audit Commit t ee:
|. s|r|l|cart c|ares |r |rte|ra| ccrt|c| cve| t|e l|rarc|a| |epc|t|r cu||r t|e ]ea|,
ii. significant changes in account ing policies during t he year and t hat t he same have been disclosed in t he not es t o t he financial
stateerts, arc
iii. inst ances of significant fraud of w hich w e have become aw are and t he involvement t herein, if any, of t he management or an
ep|c]ee |av|r a s|r|l|cart |c|e |r t|e Ccpar]'s |rte|ra| ccrt|c| s]ste cve| l|rarc|a| |epc|t|r.
For Shoppers St op Limit ed
Govind Shrikhande Sanjay Chakravarti
Cust omer Care Associat e & Cust omer Care Associat e &
Managing Direct or Chief Financial Officer
April 30, 2013
Indian Retail
I|e |rc|ar |eta|| seert acccurts lc| c|e t|ar cre l|lt| cl t|e ccurt|]'s C|css Dcest|c ||ccuct (CD|} arc ccrt||cutes accut 8
t o t he t ot al employment . The Indian ret ail market is amongst t he largest and fast est grow ing in t he w orld. Wit h a populat ion of over
1.2 billion and household size of 4 t o 5 on an average, it is not difficult t o see t he pot ent ial at t ract iveness t hat t his market offers. Indian
ret ail business has grow n by 16% Compounded Annual Grow t h Rat e (CAGR) over t he past t w o years and expect ed t o accelerat e t o
18.8 % over t he next few years, according t o The India Ret ail Report 2013. India has emerged as t he fift h most favourable dest inat ion for
|eta||e|s, accc|c|r tc / I Kea|re]'s C|cca| Reta|| Deve|cpert |rce (CRD|} 2012. |rc|a |ar|s ot| |r t|e Reta|| Ia|ert |rce, t|ar|s tc
many years of a large, young, w ell-educat ed and at t ract ive labour market , according t o t he report .
|rc|a's |rcce p]|a|c |as c|arec c|aat|ca||] cu||r t|e past twc cecaces arc w||| evc|ve ever c|e s|r|l|cart|]. /s a |esu|t,
consumpt ion driven by Choice inst ead of need w ill grow significant ly.
Modern Retail Today
Modern ret ail has been in exist ence for some t ime now. In India, modern ret ail const it ut es 7.8 % of t he t ot al ret ail market . According
t o The India Ret ail Report findings, modern ret ail in India is grow ing at a rapid rat e of 26.8% CAGR and is expect ed t o grow even fast er
by 2015. By 2015 t he share of modern ret ail in India is expect ed t o rise t o more t han 10 % of t ot al ret ail in India. Wit h t he young
demographics t hat India is blessed w it h, it can be assumed t hat modern ret ail w ill be t rendy, fashionable, in demand and buzzing w it h
hives of promot ion and opport unit ies. Wit h an increasing number of men and w omen w orking and being independent , disposable income
is increasing. The easy availabilit y of financial inst rument s is also playing it s part in grow ing t he modern ret ail space and consumpt ion.
Modern ret ail is expect ed t o mushroom in smaller t ow ns in t he next 3 years and also make a foray in t o t he rural heart land of India t o
se|v|ce t|e 70 cl t|e |rc|ar pcpu|at|cr w||c| |s st||| |r t|e |u|a| a||ets. 0ua||tat|ve lactc|s w|t||r eac| c|t]/tcwr, suc| as cce|r|sat|cr
index, w est ernisat ion index, yout h populat ion, et c., w ill play an import ant role in ascert aining t he demand for cat egories and brands,
w hich in t urn w ill det ermine t he direct ion and ext ent t o w hich penet rat ion in rural t ow ns w ould happen.
Wit h modern t rade gaining ground in India, t he opport unit y for st rong and cont inuous grow t h is immense. A simple comparison w it h ot her
developed and emerging economies in Asia indicat es room for a manifold increase in modern t rade densit y. Wit h a modest six modern
t rade st ores per million cust omers, even mat ching t he pace of count ries like Thailand and Indonesia point s t o an inflect ion point t hat is yet
t o occur. Cont rast ed w it h t he densit y of t radit ional t rade out let s, t he low er densit y of modern t rade is cert ainly poised t o change.
Modern Retail Challenges Ahead
The Indian economic sect or, including ret ail, has w eat hered an uneven ride. Changes in policies and market s have caused invest ors in t his
market t o draw caut ion and adopt w ait -and-w at ch policies. Rising inflat ion, even w hen disposable income has risen, has left a dampening
mark on ret ail sales and consumpt ion. Brands have decided t o ensure an effect ive presence st rat egy w hile speculat ion market s have
dropped. Big malls t hat w ere assured of complet e occupancy just a few years back are having t o resort t o price-leading st rat egies t o
w oo in t enant s and consumers.
Ret ailers in India are st ruggling t o st rike a balance bet w een choosing available ret ail space in desired locat ion and rent als. The next
challenge is t hat of human capit al. Wit h at t rit ion st ill very high in t he indust ry, human capit al management cont inues t o remain one of t he
t op t hree agenda point s for t he ret ailer. The cost of t raining and ret raining st aff t o replace people w ho leave, is high specifically for larger
ret ailers w ho w ant t o maint ain a part icular st andard in t heir operat ions. Skill development , hence, is a crit ical fact or t o achieve scale and
is an area w hich needs invest ment .
S.W.O.T. ANALYSIS
Strengths:
|||st C|t|ters. 0u| |||st C|t|ters C|uc |as ccrt|ruec tc ce cre cl t|e a|r st|ert|s cl cu| cus|ress. |r t|e ]ea| cre c] t|e
programme has exceeded t he 2.8 million mark in memberships, making it one of t he largest loyalt y membership programme in t he
count ry across sect ors. The Company cont inues t o believe t hat it s loyalt y programme is not only a source of subst ant ial compet it ive
advant age, but is also a very st rong st rat egic t ool. Your Company believes t hat it s First Cit izens w ill cont inue t o drive it s grow t h by
increased average expendit ure in our st ores w hich w ill be aided by t arget ed promot ional act ivit ies. At t he same t ime, our fan base on
social media has been increasing, w it h 4.4 million fans on our Facebook Page t oday. We see significant opport unit ies on bot h t hese
plat forms for engaging our cust omers.
Management Discussion and Analysis Report Shoppers St op Lt d.
St|cr lccus cr S]stes c ||ccesses. We ccrt|rue tc |rvest |r cu| l|crt arc cac| erc p|ccesses arc s]stes. I|e Ccpar]
believes t hat cont inuous invest ment in people, process and t echnology w ill drive sust ainable and profit able grow t h for t he Company.
We have in t he past year, undert aken a number of new invest ment s in t he back end and cont inue t o upgrade our current informat ion
t echnology capabilit ies and processes.
St|cr c|st||cut|cr arc |c|st|cs retwc|| arc supp|] c|a|r. We |ave c|eatec a st|cr c|st||cut|cr arc |c|st|cs retwc||, w|t| cu| lcu|
D|st||cut|cr Cert|es ccve||r c|e t|ar 150,000 scua|e leet |arc||r cve| 100,000 SKus pe| ]ea|, arc wc|||r 217. I|e Ccpar]
believes t hat t he hub-and- spoke model follow ed by it for it s dist ribut ion net w ork, w ill st and it in good st ead for t he expansion
envisaged in t he fort hcoming years.
Er|arc|r cu| |uar cap|ta|. We ccrt|rue tc assess cu| Custce| Ca|e /sscc|ates (CC/s} ac|css a|| |eve|s t||cu| assessert
cent res for promot ion decisions, career planning and succession planning. Individual and organisat ional development is t he primary
object ive of t he assessment cent re. We also conduct associat e sat isfact ion survey every year and derive ASI scores, w hich helps
us in ident ifying t he t rust index scores of respect , credibilit y, fairness and pride w it h t he organisat ion. We cont inue t o benchmark our
compensat ion and benefit s t hrough consult ant s, w it h t he best in t he indust ry t o pay our associat es accordingly.
St|cr urce|starc|r cl t|e |ea| estate cus|ress arc |ccust p|pe||re cl rew stc|es. We cerel|t l|c cu| ||ccte|s' asscc|at|cr w|t|
t he real est at e business and t heir relat ionships w it h developers, w hich have helped us acquire preferred propert ies at compet it ive
rat es. We have a robust pipeline of new st ores w hich w ill be operat ional over a period of next 36 mont hs.
Varaeert St|ert| c Cc|pc|ate Ccve|rarce. I|e Ccpar] |as a p|cless|cra| arc we||-estac||s|ec araeert tea.
|u|t|e|c|e, t|e Ccpar]'s urwave||r lccus cr ccc cc|pc|ate cve|rarce |as ceer a ceaccr lc| t|e |rcust|]. 0u| |rte|ra| arc
ext ernal audit ors are amongst t he Big 4 audit firms of t he globe. The Board has 5 independent Direct ors.
St|cr ca|a|r|r st|ert|. |av|r ceer |r e|sterce lc| sc ar] ]ea|s arc cue tc |ts st|cr c|arc |ae, t|e Ccpar] ce||eves
t hat it is w ell placed in negot iat ions/ re-negot iat ions of propert y rent als, bet t er commercials t erms w it h merchandise suppliers, et c.
The Company has successfully grow n gross margins year on year.
Risks and Concerns:
Eecut|cr. We ce||eve t|e |e] ||s| tc cu| |cwt| |s eecut|cr ||s|. I|e ret wave cl epars|cr |as sta|tec arc |s epectec tc
cont inue over t he next 36 mont hs and t he t imely execut ion of t his expansion w ill be crit ical. The Company has a st rong execut ion
t eam and w e believe it has t he capabilit y t o execut e varied ret ail format s.
Ep|c]ee |etert|cr. I|e Ccpar] ce||eves t|at ep|c]ee sat|slact|cr arc |etert|cr |s cl p||e |pc|tarce. I|e cearc lc|
experienced personnel in modern ret ail w ill only increase in t he near t erm and long t erm. Your Company believes t hat t his problem
w ill persist unt il t he indust ry reaches a st eady grow t h phase.
||essu|e cr |eta|| |ease |erta|s. Rert |s cre cl t|e |a|est ccpcrerts |r a |eta|| cus|ress' l|ec ccsts, arc t|e case |s rc c|lle|ert
for t he Company. Pow er cost and service t ax is also a mat t er of concern as t hey put subst ant ial pressure on profit s.
Ccve|rert |ev|es. Reta|| |s cu||ert|] rct v|ewec as ar |rcust|] |r |rc|a. |erce t|e|e a|e ce|ta|r |ev|es/cascac|r ellect cl taes cr
t he business w hich are proving t o be a very large burden as t here are no modes for t he indust ry t o recover or pass on t hese levies.
Delay in t he roll out of t he GST regime is also a mat t er of concern.
|rvestee Ccpar|es. I|e Ccpar] |as |rvestec |r ct|e| ert|t|es arc |cwe| t|ar epectec |etu|rs l|c t|ese ert|t|es w||| |ave ar
impact on t he cash flow s and consolidat ed result s of t he Company.
Opportunities:
Cec|ap||ca| |eac|. Ycu| Ccpar] ccrt|rues tc |rc|ease |ts |ar-|rc|a lcctp||rt I|e Ccpar]'s st|ate] tc |rc|ease t|e ruce|
of depart ment al st ores, and t herefore improve cit y w ise penet rat ion in new cit ies, increase market share in exist ing cit ies t hrough
acc|t|cra| rew stc|es |r t|cse c|t|es, arc rew stc|es |r t|e| || c|t|es, |ea|rs urc|arec. 0ve| t|e |ast twc ]ea|s t|e Ccpar]'s |eta||
space has increased from 2.3 million square feet for t he year ended 31st March, 2011 t o 3.4 million square feet for t he year ended
31st March, 2013, w hich is an impressive increase of 48%.
|]pe|c|t]. |]pe|c|t] w||c| |s a 51 sucs|c|a|] cl t|e Ccpar] |as s|cwr erccu|a|r pe|lc|arce, w|t| ar cve|a|| Sa|es |cwt|
of 12% for t he year, like t o like sales grow t h of 5% for t he year and regist ered 7t h consecut ive quart er of st ore level profit abilit y.
|c|at c|ve|s|l|cat|cr arc epars|cr. Ycu| Ccpar], |r |ts ccrstart erceavcu| tc captu|e wa||et s|a|e, |as c|ve|s|l|ec |rtc u|t|p|e
format s viz, HomeSt op w hich ret ails hard and soft furnishing, M.A.C. and Est ee Lauder w hich ret ails high end cosmet ic product s,
Clinique w hich ret ails skin care product s, Mot hercare w hich ret ails infant and kids merchandise and airport ret ailing, by t ying up w it h
The Nuance Group AG of Sw it zerland. The Company has also made a successful foray int o int ernet ret ailing t hrough it s e-ret ailing
port al. The Company has cont inued t o expand t hese format s successfully and w ill maint ain a focus on t hem.
Threats:
Eccrc|c s|cwccwr. Eccrc|c s|cwccwrs |ave a c||ect |pact cr ccrsupt|cr. Reta||, ce|r t|e erc se|v|ce p|cv|ce| cl
consumpt ion in t he supply/ value chain, is bound t o face difficult ies in an environment of economic slow dow n.
I||eat cl rew ert|arts. W|t| |rc|a ccrt|ru|r tc ce ar att|act|ve |eta|| a||et, t|e Ccpar] epects ar] rew ert|arts |rtc t|e
sect or, t hus increasing compet it ion. How ever, t he nat ionw ide foot print , excellent cust omer service levels, look & feel of t he st ores,
compet it ive product s offerings & capabilit y of it s management t eam t o execut e t he business operat ions & expansion are t he few
fact ors amongst many w hich w ould cert ainly help t he Company t o ret ain it s market share.
Ccpet|t|ve ||va||] |r t|e |rcust|]. I|e|e |s |rterse ||va||] acr |eac|r rat|cra| |eta||e|s lc| rew |ccat|crs arc cua||t] |ea| estate.
The Company believes t hat it has a robust pipeline of st ores for fut ure expansion.
/va||ac|||t] cl cua||t] |ea| estate space at cce|c|a||] v|ac|e ccst arc at ces||ec |ccat|crs |s a |eatest c|a||ere arc w||| |pact
t he grow t h of t he Company.
Customer Entry:
Ret ailers measure ent ry as foot falls, w hich is t he number of people ent ering t he st ores. This is comput ed t hrough manual count in all
st ores during t rading hours.
0
5
10
15
20
25
30
35
40
45
2012-13 2011-12 2010-11 2009-10 2008-09
C
u
s
t
o
m
e
r

E
n
t
r
y

(
i
n

m
n
.
)
Year
Customer Entry
(Departmental Store)
22.8 23.3
30.9
40.2
36.7
(Source: Company MIS)
Conversion Ratio:
Conversion is t he rat io of t he number of t ransact ions (Cash Memo) versus t he t ot al cust omer ent ry int o t he st ores. Tracking conversion
helps t he ret ailer underst and t he product ivit y of his front -end st ore employees and t he at t ract iveness of t he merchandise and services.
0%
5%
10%
15%
20%
25%
30%
35%
2012-13 2011-12 2010-11 2009-10 2008-09
C
o
n
v
e
r
s
i
o
n

R
a
t
i
o

(
%
)
Year
28%
27%
24%
23% 23%
Conversion Ratio (%)
Sales:
Gross Sales bot h at chain level and for Like-To-Like st ores has grow n against last year. The grow t h w as 17% in gross ret ail t urnover
of Shoppers St op depart ment al st ore business. The sales per sq. ft . has been comput ed on built -up area.
0
2
4
6
8
10
12
14
16
18
2012-13 2011-12 2010-11 2009-10 2008-09
S
a
l
e
s

(
l
i
k
e
-
t
o
-
l
i
k
e

g
r
o
w
t
h

%
)
Year
Sales (like-to-like growth %)
(Departmental Stores)
1
17
4
7 7

S
a
l
e
s

P
e
r

S
q
u
a
r
e

F
e
e
t

(
i
n

`
)
Year
0
1500
3000
4500
6000
7500
9000
10500
2012-13 2011-12 2010-11 2009-10 2008-09
Sales Per Square Feet (in `)
8218
7955
8518
7808
7837
(Source: Company MIS) (Source: Company MIS)
Apparel:
The Apparel cont ribut ion t o t ot al sales of t he Shoppers St op Depart ment al st ore business w as 59.9% in 2012-13 as compared t o 58.7%
in 2011-12.
Non-Apparel:
This cat egory includes Cosmet ics, Personal Accessories, Jew ellery, Leat her goods, Home Wares, Elect ronics, Books and M usic.
These lifest yle product s have high aspirat ion value, and as t he consuming class increases, t here w ill be a big surge in t he demand for
t his cat egory. The Non-Apparel cont ribut ion t o t ot al sales of t he Company w as 40.1% in 2012-13.
S
a
l
e
s

M
i
x

(
%
)
Year
60.4% 59.5% 58.8% 58.7%
40.5% 41.2% 41.3%
59.9%
40.1%
Non-Apparels Apparels
Sales Mix (%)
0%
20%
40%
60%
80%
100%
2012-13 2011-12 2010-11 2009-10 2008-09
39.6%
Private Label & Private Brands:
Your Company aims t o provide a different iat ed and unique offering t o t he cust omer t hrough it s ow n privat e labels as w ell as t hrough
exclusive privat e brands. The cont ribut ion of privat e label is at 15.9% of sales, and privat e label sales grow n by 16%. Your Company has
ct ar ec|us|ve a||areert lc| cepa|terta| stc|e cus|ress w|t| VuSI/|C JE/|S, a Ce|ar B|arc, lc| t|e|e Ver's arc Wcer's
Wea|. 0u| /ust|r Reec u.K. ec|us|ve a|eeert tc |eta|| er's c wcer's wea| |as pcstec a |ea|t|] |cwt|. /s a pa|t cl |ts st|ate] tc
provide a w ide range of merchandise t o cust omers, your Company aims t o fill in t he gaps in t he nat ional brand offering t hrough it s privat e
labels & exclusive arrangement s w it h privat e & int ernat ional brands.
Average Selling Price (ASP):
Average Selling Price is t he Gross Ret ail Sales divided by t he number of unit s sold. Tracking ASP helps t he ret ailer t o align t he offering as
per t he cust omer segment as w ell as improve t he product ivit y of t he floor space.
821
856
913
977
1062
400
500
600
700
800
900
1000
1100
2012-13 2011-12 2010-11 2009-10 2008-09
A
v
e
r
a
g
e

S
e
l
l
i
n
g

P
r
i
c
e

(
`
)
Year
Average Selling Price (Like to Like)
Transaction Size ( ):
Transact ion size represent s t he amount spent by each cust omer on his buying. This is comput ed by t he t ot al sales divided by t he number
of cash memos.
0
300
600
900
1200
1500
1800
2100
2400
2700
2012-13 2011-12 2010-11 2009-10 2008-09
T
r
a
n
s
a
c
t
i
o
n

S
i
z
e

(
`
)
Year
1843
2029
2207
2311
2481
Transaction Size (`)
Merchandise Purchase:
Ycu| Ccpar]'s ac|||t] tc p|esert cr t|e s|e|ves cc||ect e|c|arc|se assc|terts |r t|e |||t |, st]|e, cc|cu| c las||cr |s cre cl |ts
most crit ical success fact ors. A t eam of Buyers & Merchandisers cont inuously ensure t hat t he pricing st rat egy and value proposit ion are
ccp|ete|] |r ture w|t| t|e custce|s' epectat|crs. We |eu|a||] cr|tc| sa|es t|ercs tc cpt||se |rvertc|] |eve|s.
Our w ell-est ablished syst ems and processes in Buying & Merchandising & Logist ics enables us t o efficient ly manage t he flow of invent ory
t o st ores, provide prompt replenishment s and manage pricing.
Your Company believes in a broad dist ribut ion of risk w it h no high dependency on any single supplier and has a diversified supplier base.
Suppliers are select ed aft er evaluat ion based on fairly st ringent paramet ers w hich ensure t he qualit y & reliabilit y of supply. Alt ernat e
dist ribut ion channels for invent ory have also been put in place as a cont ingency, should t he need arise.
Supplier Risks:
Our broadly varied offering necessit at es alliances w it h a large number of suppliers from various business sect ors. In order t o mit igat e t he
risk involved, w e ent er int o arrangement s w it h vendors in various business format s such as Out right s Buy/ Sale or ret urn, Consignment &
Concessionaire/ Conduct ing arrangement .
Shrinkage:
Shrinkage in t he ret ail business is defined as t he loss in invent ory t hrough a combinat ion of shop lift ing, pilferage and errors in document at ion
and t ransact ion processing t hat go unnot iced. We have focus on invent ory cont rol and have set up a separat e depart ment called profit
enhancement , w hich not only monit ors Shrinkage on a regular basis but also looks at various fact ors t hat could lead t o Shrinkage at st ores
and dist ribut ion cent res. The profit enhancement depart ment , St ore Operat ions along w it h t he Supply Chain t eam have w orked t oget her
and monit ored t he Shrinkage level on a mont h on mont h basis w hich has result ed in t he Shrinkage percent age being cont rolled at 0.35%
of t he Turnover and our endeavour w ill alw ays be t o low er t his rat io t hrough proper monit oring and cont inuously review ing Invent ory
management processes and syst ems.
S
h
r
i
n
k
a
g
e

(
a
s

a

%

o
f

S
a
l
e
s
)
Year
0.52%
0.35%
0.25%
0.30%
0.35%
0.40%
0.45%
0.50%
0.55%
0.60%
0.65%
2012-13 2011-12 2010-11 2009-10 2008-09
Shrinkage
(as a % of Sales)
0.30%
0.40%
0.36%
Gross Margins:
The gross margin increased during t he year t o 33.2% from 32.7% as compared t o t he last Improved sales mix w it h higher cont ribut ion
from lifest yle product s (i.e. w at ches, leat her, jew ellery, perfumes and cosmet ics), helped improve gross margins. Vendor management
as also sourcing abilit y has improved w it h scale and w ould accrue more economies and higher gross margins.
Operating Profit:
Operat ing Profit (w it hout except ional it ems) has decreased by 9% t o ` 13,081 lacs from ` 14,305 lacs in t he previous year. The Operat ing
Profit Margin has degrow n t o 5.1% from 6.5% due t o economic slow dow n and opening of large number of new st ores.
0
2000
4000
6000
8000
10000
12000
14000
16000
2012-13 2011-12 2010-11 2009-10 2008-09
Year
Operating Profit (without exceptional items) % to Gross Retail Sales
3.6%
7.3%
8.0%
6.6%
EBIDTA
(
E
B
I
D
T
A

`

i
n

m
i
l
l
i
o
n
s
)
4,924
11,351
15,211
14,391
13,081
5.1%
Net Interest:
Int erest cost has increased t o ` 1,906.8 lacs as against ` 752.4 lacs.
Profit after Tax:
The Company has achieved post t ax profit of ` 3,916.9 lacs, as against a post t ax profit of ` 6,425.9 lacs last year.
Dividend:
The Company has proposed a dividend of 15% amount ing t o ` 728 lacs (Including Corporat e Dividend Tax).
Inventory:
The invent ory as at t he end of current year is ` 24,382 lacs as against ` 21,204 lacs as at t he end of t he last year. Invent ory
holding period is 140 days during t he current f iscal against 133 days last year. The invent ory has been valued at low er of cost or
net realisable value.
Liquidity:
The cash generat ed from operat ions w as ` 11,236 lacs.
6.5 %
14,305
Productivity/Operating efficiency parameters:
We look at our Gross Margin w it h reference t o our Space, Invent ory and Labour t o monit or our efficiency w it h t he help of 3 indicat ors i.e.,
Gross Margin on Invent ory (GMROI), Gross Margin Ret urn on Floor Space (GMROF) and Gross Margin Ret urn on Labour (GMROL).
GMROI helps t o opt imise invent ory levels, GMROF helps t o maximise t he cash margins and GMROL helps t o increase labour
product ivit y.
GMROI
2.5
3.0
3.5
4.0
4.5
5.0
2012-13 2011-12 2010-11 2009-10 2008-09
G
M
R
O
I

(
`

I
n
v
e
n
t
o
r
y
)
Year
4.22 4.25
4.17
4.01
3.86
GMROF
G
M
R
O
F

(
`

p
e
r

u
n
i
t

o
f

r
e
t
a
i
l

s
p
a
c
e
)
Year
1700
1900
2100
2300
2500
2700
2900
2012-13 2011-12 2010-11 2009-10 2008-09
2608
2771
2568
2550
2471
GMROL
500,000
700,000
900,000
1,100,000
1,300,000
1,500,000
1,700,000
1,900,000
2012-13 2011-12 2010-11 2009-10 2008-09
1,270,014
1,649,991
1,719,600
1,637,299
1,690,871
G
M
R
O
L

(
`

p
e
r

e
m
p
l
o
y
e
e
)
Year
Partner Satisfaction Index (PSI):
The performance of any Company depends on t he associat ion and relat ionship it builds w it h various vendors/ part ners over a period of
t ime. To evaluat e t his sat isfact ion and expect at ion, your Company has appoint ed CSMM (Cust omer Sat isfact ion Measurement and
Management ), a part of IMRB (Indian Market ing and Research Bureau) t o do an impart ial evaluat ion of our relat ionship w it h various
st akeholders. This helps your organisat ion underst and t he expect at ions of various business part ners, current st rengt hs and concern areas
t hereby help set a clear roadmap for improvement and bet t er performance.
Our PSI scores for t he five years are as below :
Year 2008 2009 2010 2011 2012
Scores 4.06 3.89 4.14 3.85 4.07
Partnership for Progress:
Part nership for Progress (PFP) is a vendor, meet w hich your Company conduct s annually. During t his event , your Company get s and gives
opport unit y t o t he t op ret ail vendors/ brands t o discuss and st rengt hen t he associat ion, apart from exploring various business possibilit ies
w it h each ot her. The summit also becomes a plat form for your Company as w ell as it s part ners t o share t heir experiences w it h each
ot her. Your Company also invit es w ell-know n int ernat ional and nat ional speakers t o share learning and experience w hich is closely relat ed
t o Ret ail, Brand, Cust omer, Logist ics, et c.
Your Company also recognises t he performance of t op part ners w ho are rew arded w it h SHOPPERS STOP PINNACLE AWARDS during
t his summit .
This is an act ivit y w it h more t han 100 vendors/ part ners at t ending t he summit .
Human Resources:
For your Company, t he Human Resource funct ion has evolved from pure HR t o Talent Management over t he last one year. Wit h our focus
ce|r cr Ia|ert Varaeert Ia|ert ceve|cpert arc |etert|cr we|e cl p||e |pc|tarce cve| t|e past ]ea|.
Ycu| Ccpar] |s |rcwr lc| |ts we||-cel|rec arc ellect|ve ccu|e I|e Bac] Kara|cc p|c|ae w||c| lurcaerta||] ceve|cps t|e
front end associat es t o a managerial roll. This year w e w orked w it h and helped 40 associat es cross t he bridge from a front end associat e
t ow ards a managerial roll. We ident ified, developed, t rained and groomed t hem for t heir next big assignment .
The Managerial and Supervisory Training programmes (M.A.S.T.) w as conduct ed for 37 days w it h t he help of int ernal as w ell as ext ernal
t rainers. The cont ent w as exhaust ive and effect ive.
I|e '| ||ece 0u| Va|ues' |r|t|at|ve ||c|ec cll cr 27t| 0ctcce| 2012 (S|cppe|s Stcp |curcat|cr Da]} w|t| t|e cc|e ccject|ve cl |e|r|t|r
t he fire w it hin each employee t o st ay commit t ed t o our most t reasured set of principles and beliefs. An init iat ive t hat set t o reach out ,
connect and engage w it h every single employee across 54 st ores and 24 cit ies.
The focus from Learning & Development w as on incorporat ing t he Coach & Ment or model, w hich w as applied t o t he Trainee Trading
Manager and Trainee Cat egory manager for a period of 7 mont hs each, helping t he individuals on t he development plan t hrough t echnical
and behavioural coach & coachee model.
The L.E.A.P. (Learn, Excel, Achieve & Perform) & L.E.A.D. (Leadership Excellence Accredit at ion Development ) programme int roduced in
t he year 2012 in cont inuat ion t o t he Baby Kangaroo M.A.S.T. programme keeping in mind t he 5t h value w hich clearly st at es t hat w e w ill
|eccr|se arc suppc|t t|e |rc|v|cua|s' reec lc| |cwt| t||cu| ccrstart |rput, c||ect|cr arc cppc|tur|t|es w|t| |espect tc cct| ep|c]ee
and business associat es
Wit h t he changing consumer behaviour and t o best ow good cust omer service w e hired a pool of Management Trainees t hrough campus
placement s and also hired st udent s from fashion inst it ut es and designat ed t hem as CCA & Fashion Assist ant s .
The focus on Learning & Development has been an on-going and int egral part of t he organisat ion w here t here has been a grow t h in
t raining hours ext ended t o associat es across all levels.
Training Hours 1 1 -1 2 Training Hours 1 2-1 3 Growth Over Last Year %
22,455 25,594 14%
Your Company has conduct ed 144 assessment cent res in t he F.Y. 2012-2013 covering 1020 associat es in order t o provide grow t h
opport unit ies t hus ensuring a fair and t ransparent grow t h process.
The Associat e Sat isfact ion Index (ASI) is conduct ed t hrough an online survey yearly t o underst and t he level of sat isfact ion associat es
have t ow ards t heir w ork, job sat isfact ion, loyalt y index, help us underst and t he st rengt h and w eakness of t he organisat ion t o t ake
immediat e correct ive measures.
This year t he ASI score is at 4.12 and t he overall sat isfact ion levels w ere more or less t he same across different levels.
Year 2008 2009 201 0 201 1 201 2
Overall Loyalt y Index 4.01 3.95 3.95 4.11 4.12
Marketing:
0u| c|arc p|||cscp|] cl 'Sta|t Scet||r |ew' was t|ars|atec |rtc cu| c|arc capa|r, w||c| was t|eec at vc|c|r t|e u|car Scc|a|
Concerns of environment , healt h, road & public t ransport , amongst ot hers. At t he same t ime t he campaign port rayed t he high fashion
c|arc |ae|] cl S|cppe|s Stcp. Ia||r t|e c|arc p|||cscp|] a step lu|t|e|, we |r|t|atec t|e 'Sta|t Scet||r |ew Icca]' capa|r |r
key market s like Mumbai, New Delhi and Bengaluru. This campaign is a series of small ads t hat are published every Thursday on page 3
of key cit y supplement s of a leading publicat ion in t hese cit ies. These ads provide int erest ing fashion/ shopping t ips t o cust omers every
w eek, w hich are also highlight ed at t he physical st ores t hrough Visual Merchandising.
This year, w e had cat egory based promot ions like t he Denim Pow er, Makeover Marat hon, Suit s & Jacket s Fest , t o name a few. These
fest ivals focused on offers t hat w ere available across all brands available in our st ore for t he part icular cat egory.
Cust omer engagement t hrough innovat ive init iat ives in Digit al and Social Media cont inued t o be a big highlight t his year. Various cont est s
and cont inual engagement on t his space have ensured t hat Shoppers St op enjoys a large number of fans, more t han 44 lacs on Facebook.
Shoppers St op is also act ive on ot her plat forms such as Tw it t er and You Tube.
Va||et|r |rrcvat|crs suc| as t|e cep|c]ert cl 0u|c| Respcrse (0R} arc /uertec Rea||t] (/R} ccces |ave ceer usec tc er|arce
all market ing communicat ions. Augment ed Realit y in India is st ill nascent and Shoppers St op is t he First Indian Large-Format Ret ailer t o
have creat ed an Augment ed Realit y set -up for a campaign.
Customer Satisfaction:
At Shoppers St op w e st rive t o provide our cust omers w it h t he best overall experience of shopping w it h us. To measure t he cust omer
experience w e conduct cust omer sat isfact ion surveys t o evaluat e a range of paramet ers including merchandise range and qualit y, st ore
environment , st aff, t ransact ion efficiency, loyalt y programme, schemes and promot ions t o name a few and undert ake improvement s in
various areas.
We also include select compet it ion st ores in our surveys in order t o measure experience in our st ores as compared t o compet it ion.
Overall Customer Satisfaction Index:
November 2007 February 2009 April 201 0 J une 201 1 August 201 2
63 81 80 79 80
Loyalty Programme:
Your Company runs t he famed First Cit izen Loyalt y Programme. The First Cit izens programme now has a base of over 28.8 lacs cust omers.
During t he current year, t he First Cit izens cont ribut ed 71% of t he Companys annual sales. The First Cit izen programme has 3 t iers
Classic Moment s (ent ry level), Silver Edge and Golden Glow. Members fall int o t he various t iers on t he basis of t heir spends w it h us.
First Cit izens also earn different ial rew ards basis on t heir current t ier of membership. First Cit izens receive:
Rewa|c pc|rts cr t|e|| spercs. I|ese |ewa|c pc|rts car ce |eceeec lc| a w|ce va||et] cl e|c|arc|se at ]cu|
Companys st ores.
Ec|us|ve sc|ees, cerel|ts arc p|cct|crs.
Etercec arc ec|us|ve s|cpp|r |cu|s espec|a||] cu||r t|e lest|ve seascr. Spec|a| p|ev|ews celc|e t|e sa|e pe||ccs.
|rv|tat|crs tc ec|us|ve everts cct| |r-stc|e as we|| as t|cse c|ar|sec cuts|ce t|e stc|es.
|ce ce||ve|] cl a|te|ec e|c|arc|se.
Ec|us|ve |||st C|t|ters |cure at se|ect stc|es tc |e|a alte| |ect|c s|cpp|r.
Shoppers St op has also t aken t he First Cit izen experience mobile, by updat ing t he exclusive First Cit izen Mobile applicat ion on Blackberry,
Android and iPhone plat forms.
This year, t he Company cont inued w it h t he exclusive promot ion for First Cit izen members First Cit izens Fiest a. Under t his promot ion
t he member earned 3 t imes t he rew ard point s besides lot s of ot her special offers and deals. The promot ion w as very w ell received and
it helped us furt her reinforce our st rong relat ionship w it h t his member communit y.
Your Company also cont inued w it h t he Choose Your Ow n Gift offer w hich gave cust omers t he chance t o select t heir ow n gift s from
w|t||r t|e stc|e. |rsteac cl clle||r a p|e-se|ectec |lt, S|cppe|s Stcp clle|ec |ts |c]a|t] p|c|ae ece|s w|t| Bcrus Rewa|c |c|rts
on t heir purchases, w hich could be redeemed on any product of t heir choice.
Co-branded Credit/Debit card programmes with Citibank:
Your Company in associat ion w it h Cit ibank cont inues t o of f er it s First Cit izens an opt ion t o add on a credit card t o t heir exist ing
loyalt y cards.
This enables First Cit izens t o add on a credit line t o t heir purchases. They also have t he added advant age of being able t o choose
l|c acrst va||cus att|act|ve l|rarc|r cpt|crs, cas| cac| sc|ees, EV| sc|ees, etc., lc| cu]|r at ]cu| Ccpar]'s stc|es. |c|
cust omers w ho are averse t o credit , t here is an opt ion of act ivat ing a debit card. As on 31 March, 2013, t he number of members in t he
cc-c|arcec ca|c p|c|ae was cve| 1,o7,17o ece|s.
Risk Management and Internal Control:
Effect ive governance consist s of compet ent management ; implement at ion of st andard policies and processes; maint enance of an
app|cp||ate auc|t p|c|aes w|t| |rte|ra| ccrt|c| erv||crert ellect|ve ||s| cr|tc||r arc araeert |rlc|at|cr s]stes (V|S}.
The Company has an int egrat ed approach for management of risk and has formulat ed t he framew ork for regulat ory and risk management ,
st andardizing t he definit ion of int ernal cont rols.
/rrua| Repc|t 2012-13 | 19
It also provides a framew ork for risk management and regulat ory compliance, w hich requires risk assessment s and relat ed policies,
a cont rol-based environment and act ivit ies, informat ion and communicat ion procedures, and a monit oring mechanism for t he cont rol
environment .
The Company has a sound syst em of Int ernal Cont rols for financial report ing of various t ransact ions, efficiency of operat ions and
compliance w it h relevant law s and regulat ions commensurat e w it h it s size and nat ure of business. The Company has a w ell-defined
syst em of management report ing and periodic review of businesses t o ensure t imely decision-making.
These int ernal cont rol procedures ensure t he follow ing:
Ell|c|ert use arc p|ctect|cr cl |escu|ces.
Ccp||arce w|t| pc||c|es, p|ccecu|es arc statutes.
/ccu|ac] arc p|cptress cl l|rarc|a| |epc|ts.
I|e V|S lc|s ar |rte|a| pa|t cl t|e Ccpar]'s ccrt|c| ec|ar|s. /|| cpe|at|r pa|aete|s a|e cr|tc|ec arc ccrt|c||ec, w|t|
mat erial deviat ions from t he annual planning and budget ing and business out look including capit al expendit ure report ed t o t he Board on
quart erly basis.
Report s of int ernal audit ors are review ed by t he Audit Commit t ee, and correct ive measures are carried out t ow ards furt her improvement
in syst ems and procedures and compliance w it h Int ernal Cont rol Syst em. The board also recognises t he w ork of t he audit ors as an
independent check on t he informat ion received from t he management on t he operat ions and performance of t he Company.
Technology Initiatives:
In t he year 2012-13, your Company cont inued it s t hrust t ow ards scaling up for grow t h, increasing operat ional efficiency and exploring
t echnology lead innovat ion t o sust ain t he leadership posit ion in IT adopt ion in t he Indian and Global ret ail market s. Some of t he key
init iat ives in t his direct ion are:
Allocation:
Shoppers St op rolled out t he Allocat ion applicat ion from JDA. The applicat ion predict s t he merchandise most likely t o sell in each st ore
and quant it ies t hereof based on past sales dat a. This allow s more relevant invent ory t o be sent t o each st ore t hus leading t o increased
sales t hroughput and a bet t er cust omer experience.
iCatalog:
In it s endeavour t o const ant ly bring benefit s of t he lat est t echnologies t o cust omers, your Company deployed an iPad based applicat ion
in t he HomeSt op format . This applicat ion w ill serve as a pot ent t ool t o t he Home Consult ant s & show case t he lat est home product s &
solut ions, for bet t er cust omer engagement & enhanced experience.
Customer engagement through Mobility:
Having delight ed t he cust omer by engaging her t hrough t he First Cit izen app, your Company has added more funct ions and feat ures t o t he
app w hich w ill provide cust omers w it h import ant informat ion like st ore locat ions, part ner benefit s, in st ore promot ions, et c. This success
st ory has also encouraged our sist er concern, Crossw ord Bookst ores t o rollout a similar app t o engage t heir cust omers and book lovers.
Business Intelligence:
As part of t he Business Int elligence init iat ive, Shoppers St op implement ed cut t ing edge, in-memory, Dat a Analysis t echnology called
0|||V|ew. I|e tec|rc|c] was c|cser |eep|r |r |rc t|e |cw|r reec cl ellect|ve|] ara|]s|r cata at a |aru|a| |eve| arc c|aw|r
|rs||ts l|c |t. 0|||V|ew |as a||cwec t|e cus|ress tc c|cwse c ara|]se cata w|t| just lew c||c|s w|t| a se|l-se|v|ce cce| w|t| |r|a|
t echnical help. Having successfully complet ed t he roll-out of t he first phase in t he st ipulat ed t ime, t he project has delivered above
expect at ions.
Corporate Governance:
Your Company has t aken st eps t o ensure t hat t he Corporat e Governance guidelines are adopt ed and fully complied w it h. The det ailed
Corporat e Governance Report is at t ached w it h t his report .
Cautionary Statement:
I|e stateert ace |r t||s sect|cr cesc||ces t|e Ccpar]'s ccject|ves, p|cject|crs, epectat|crs arc est|at|crs w||c| a] ce
lc|wa|c |cc||r stateerts' w|t||r t|e ear|r cl app||cac|e secu||t|es |aws arc |eu|at|crs. I|e arrua| |esu|ts car c|lle| ate||a||]
from t hose expressed or implied, depending on t he economic and climat ic condit ions, Government policies and ot her incident al fact ors
w hich are beyond t he cont rol of t he Company.
To t he Members of Shoppers St op Limit ed
We have examined t he compliance of condit ions of Corporat e Governance by Shoppers St op Limit ed ( t he Company ) for t he year ended
on March 31, 2013 as st ipulat ed in Clause 49 of t he List ing Agreement of t he said Company w it h t he st ock exchanges in India.
The compliance of condit ions of Corporat e Governance is t he responsibilit y of t he Management . Our examinat ion w as limit ed t o a
review of procedures and implement at ion t hereof, adopt ed by t he Company for ensuring t he compliance of t he condit ions of Corporat e
Governance. It is neit her an audit nor an expression of opinion on t he financial st at ement s of t he Company.
In our opinion, and t o t he best of our informat ion and according t o t he explanat ions given t o us, w e cert ify t hat t he Company has complied
w it h t he condit ions of Corporat e Governance as st ipulat ed in t he abovement ioned List ing Agreement .
We furt her st at e t hat such compliance is neit her an assurance as t o t he fut ure viabilit y of t he Company nor t he efficiency or effect iveness
w it h w hich t he Management has conduct ed t he affairs of t he Company.
For Deloitte Haskins & Sells,
Chart ered Account ant s
(Regist rat ion No. 117366W)
Shyamak R. Tata
Part ner
Membership No. 38320
Place: Mumbai
April 30, 2013
Cert ificat e of Compliance from Audit ors as st ipulat ed under Clause 49
of t he List ing Agreement wit h t he St ock Exchanges in India Shoppers St op Lt d.
Companys philosophy on Code of Governance
The Company remains commit t ed t o t he concept of good corporat e governance pract ices in all it s act ivit ies t o ensure t hat t he ult imat e
goal of making t he Company a value driven organisat ion. It s philosophy on t he code of Corporat e Governance is:
Ic ersu|e acecuate ccrt|c| s]stes tc erac|e t|e Bca|c tc ell|c|ert|] ccrcuct t|e cus|ress arc c|sc|a|e |ts |espcrs|c|||t|es tc
shareholders.
Ic ersu|e t|at t|e cec|s|cr a||r p|ccess |s la|| arc t|arspa|ert.
Ic ersu|e lu||est |rvc|veert arc cc|tert cl t|e araeert lc| a||sat|cr cl s|a|e|c|ce|s va|ue.
Ic |c|ce t|e cc|pc|ate va|ues |r t|e ep|c]ees arc erccu|ae t|e |r t|e|| ccrcuct.
Ic ersu|e t|at t|e Ccpar] lc||cws t|e |cca||] |eccr|sec cc|pc|ate cve|rarce p|act|ces.
We have made conscious effort s t o inst it ut ionalise Corporat e Governance pract ice and w e believe t hat it shall go beyond adherence t o
t he regulat ory framew ork. Our corporat e st ruct ure, business and disclosure pract ices have been aligned t o our Corporat e Governance
||||cscp|]. We w||| ccrt|rucus|] erceavcu| tc ta|e lc|wa|c t|e cest p|act|ces tc er|arce sta|e|c|ce|'s va|ue.
Board of Directors
The Board of Direct ors comprises of t en members including one execut ive direct or and nine non-execut ive direct ors. The Company has a
non-execut ive promot er Chairman and t he number of independent direct ors is one half of t he t ot al number of Direct ors. The independent
direct ors on t he Board are professionals, t echnocrat s and ret ail expert s, w ho are senior, compet ent and highly respect ed persons from
t heir respect ive fields and provide st rat egic direct ion and t hrust t o t he operat ion of t he Company.
The key decisions are t aken aft er det ailed deliberat ions and discussions by t he Board. The Company alw ays ensures t hat Board members
are present ed w it h all t he relevant informat ion on vit al mat t ers affect ing t he w orking of t he Company including t he informat ion as int eralia
spec|l|ec urce| /rreu|e |/ cl C|ause 19 cl t|e L|st|r /|eeert.
None of t he Direct ors on t he Board is a Member on more t han t en Commit t ees and Chairman of more t han five Commit t ees (as specified
in Clause 49), across all t he companies in w hich t hey are Direct ors.
The composit ion of t he Board of Direct ors, t heir at t endance at Board Meet ings during t he year and at t he last Annual General Meet ing
and t he number of ot her Direct orships and Commit t ee Memberships held by t hem in ot her Companies are given below :
Name of Directors Category Designation Attendance
particulars
No. of other Directorships & Committee
Memberships/Chairmanships
Board
Meetings
Last
AGM
Directorships
1
Committee
Membership
1 & 2
Committee
Chairmanship
1 & 2
Mr. Chandru L.
Raheja
Promot er & Non-
Execut ive Direct or
Chairman 4 Yes 2 1 0
Mr. Ravi C.
Raheja
Promot er & Non-
Direct or 4 Yes 5 1 1
Mr. Neel C.
Raheja
Promot er & Non-
Mr. Gulu L.
Mirchandani
Independent & Non-
Direct or 4 No 5 2 0
Mr. Shahzaad S.
Dalal
Independent & Non-
Prof. Nit in
Sanghavi
Independent & Non-
Mr. Deepak
Ghaisas
Independent & Non-
Mr. Nirvik Singh Independent & Non-
Mr. B. S. Nagesh Non-Execut ive
Direct or
Vice Chairman 3 Yes 3 1 0
Mr. Govind
Shrikhande
Managing
Direct or
4 Yes 5 1 0
Corporat e Governance Report Shoppers St op Lt d.
Notes:
1. The ot her Direct orships and Chairmanships/ Memberships of commit t ees held in foreign companies, privat e limit ed companies and
companies incorporat ed u/ s 25 of t he Companies Act , 1956 are excluded.
2. I|e C|a||ars||p arc Vece|s||p cl /uc|t Cc|ttee arc S|a|e|c|ce|s' C||evarce Cc|ttee a|cre a|e ccrs|ce|ec.
3. Mr. Ravi C. Raheja and Mr. Neel C. Raheja are sons of Mr. Chandru L. Raheja. No ot her direct or is relat ed t o any ot her direct or of
t he Company.
During t he year under review, t he Board of Direct ors met four t imes i.e. on 30t h April, 2012, 31st July, 2012, 30t h Oct ober, 2012 and
29t h January, 2013. The maximum int erval bet w een any t w o meet ings during t his period does not exceed four mont hs.
Dat es for t he Board Meet ings for t he ensuing year are decided w ell in advance and communicat ed t o t he Direct ors. The Agenda along
w it h t he explanat ory not es are sent in advance t o t he Direct ors. Addit ional meet ings of t he Board are held w hen deemed necessary by
t he Board.
The Company has adopt ed t he Code of Conduct for all Board members and management personnels of t he Company. This Code is post ed
on t he w ebsit e of t he Company. All Board members and management personnels have confirmed compliance t o t he Code of Conduct .
A declarat ion signed by t he Managing Direct or of t he Company t o t his effect is appended w it h t he Report .
Audit Committee
The Company has const it ut ed an Audit Commit t ee in t he year 2001. The role, pow ers and funct ions of t he Audit commit t ee is in
accordance w it h Clause 49 of t he List ing Agreement and Sect ion 292A of t he Companies Act , 1956.
The Audit Commit t ee comprises of four Non-Execut ive Direct ors. The members of t he Commit t ee possess t he sound know ledge of
finance & account s. The Audit Commit t ee invit es such of t he execut ives, as it considers appropriat e t o be present at t he meet ings of t he
Commit t ee. The Managing Direct or, Vice Chairman, Chief Financial Officer, Company Secret ary, represent at ives of t he int ernal audit ors
and st at ut ory audit ors are also present at t he Audit Commit t ee Meet ings as invit ees.
During t he year under review, t he Commit t ee met four t imes i.e. on 30t h April, 2012, 31st July, 2012, 30t h Oct ober, 2012 and
29t h January, 2013.
The Composit ion of t he Audit Commit t ee and t he at t endance of t he members at t he meet ings held are as follow s:
Name of Member Status Category No. of meetings attended
Mr. Deepak Ghaisas Chairman Independent Direct or 4
Mr. Ravi C. Raheja Member Non-Independent Direct or 4
Mr. Shahzaad S. Dalal Member Independent Direct or 3
Prof. Nit in Sanghavi Member Independent Direct or 3
V|. ||as|art Ve|ta, V|ce ||es|cert Lea| arc Ccpar] Sec|eta|] cl t|e Ccpar] acts as t|e Sec|eta|] tc t|e Cc|ttee.
The broad t erms of reference of t he Audit Commit t ee int er-alia are as under:
1. Ic cve|see t|e Ccpar]'s l|rarc|a| |epc|t|r p|ccess arc t|e c|sc|csu|e cl |ts l|rarc|a| |rlc|at|cr, tc ersu|e t|at t|e l|rarc|a|
st at ement is correct , sufficient and credible.
2. To recommend t o t he Board, t he appoint ment and re-appoint ment , replacement or removal of t he St at ut ory Audit ors, fixat ion of audit
fees and also approval for payment of any ot her services.
3. To review w it h t he management , t he annual financial st at ement s before submission t o t he Board for approval, w it h part icular
reference t o:
a} Vatte|s |ecu||ec tc ce |rc|ucec |r t|e D||ectc|'s Respcrs|c|||t] Stateert tc ce |rc|ucec |r t|e Bca|c's |epc|t |r te|s cl c|ause
(2AA) of Sect ion 217 of t he Companies Act , 1956.
b) Changes, if any, in account ing policies and pract ices and reasons for t he same.
c) Major account ing ent ries involving est imat es based on t he exercise of judgement by management .
d) Significant adjust ment s made in t he financial st at ement s arising out of audit findings.
e) Compliance w it h list ing and ot her legal requirement s relat ing t o financial st at ement s.
f) Disclosure of relat ed part y t ransact ions.
} 0ua||l|cat|crs |r t|e c|alt auc|t |epc|t.
4. To review w it h t he management , t he quart erly financial st at ement s before submission t o t he Board for approval.
5. To review w it h t he management , performance of st at ut ory and int ernal audit ors and adequacy of t he int ernal cont rol syst ems.
6. Review ing, w it h t he management , t he st at ement of uses / applicat ion of funds raised t hrough an issue (public issue, right s issue,
preferent ial issue, et c.) t he st at ement of funds ut ilised for purposes ot her t han t hose st at ed in t he offer document or prospect us/
not ice and making appropriat e recommendat ions t o t he Board t o t ake up st eps in t his mat t er.
7. To review t he adequacy of int ernal audit funct ion, including t he st ruct ure of t he int ernal audit depart ment , st affing and seniorit y of
t he official heading t he depart ment , report ing st ruct ure coverage and frequency of int ernal audit .
8. Discussion w it h int ernal audit ors any significant findings and follow up t here on.
9. Review ing t he findings of any int ernal invest igat ions by t he int ernal audit ors int o mat t ers w here t here is suspect ed fraud or irregularit y
or a failure of int ernal cont rol syst ems of a mat erial nat ure and report ing t he mat t er t o t he Board.
10. Discussion w it h st at ut ory audit ors before t he audit commences, about t he nat ure and scope of audit as w ell as post -audit discussion
t o ascert ain any area of concern.
11. To look int o t he reasons for subst ant ial default s in t he payment t o t he shareholders (in case of non payment of declared dividends)
and credit ors.
12. To review t he funct ioning of t he Whist le Blow er mechanism.
13. To approve t he appoint ment of CFO (i.e., t he w hole-t ime Finance Direct or or any ot her person heading t he finance funct ion or
discharging t hat funct ion) aft er assessing t he qualificat ions, experience & background, et c. of t he candidat e.
14. Carrying out any ot her funct ion as may be added t o t he t erms of reference of t he Audit Commit t ee.
Compensation / Remuneration Committee
The Company has const it ut ed Compensat ion / Remunerat ion Commit t ee in t he year 2001. The scope of t he act ivit ies of t he
Compensat ion / Remunerat ion Commit t ee is t o recommend t he remunerat ion payable t o t he Managing Direct or of t he Company, payment
of commission and sit t ing fees t o Non-Execut ive Direct ors and formulat ion and implement at ion of various Employee St ock Opt ion Plans
(ESOP) Schemes in t he Company.
During t he year, t he Commit t ee met t w elve t imes i.e., on 30t h April, 2012, 30t h May, 2012, 9t h June, 2012, 1st August , 2012,
28t h August , 2012, 28t h Sept ember, 2012, 30t h Oct ober, 2012, 28t h November, 2012, 20t h December, 2012, 29t h January, 2013,
26t h February, 2013 and 26t h March, 2013.
The Composit ion of t he Commit t ee and t he at t endance of t he members at t he meet ings held are as follow s:
Name of Member Status No. of meetings attended
Mr. G. L. Mirchandani Chairman 12
Mr. Ravi C. Raheja Member 12
Mr. Shahzaad S. Dalal Member 4
Prof. Nit in Sanghavi Member 3
Remuneration Policy
1. The remunerat ion of t he Execut ive Direct or is recommended by t he Compensat ion / Remunerat ion Commit t ee based on crit eria such
as |rcust|] cerc|a||s, t|e Ccpar]'s pe|lc|arce v|s-a-v|s t|e |rcust|], |espcrs|c|||t|es s|cu|ce|ec, pe|lc|arce / t|ac| |ecc|c,
macroeconomic review on remunerat ion packages of heads of ot her organisat ions and is decided by t he Board of Direct ors. The
Company pays remunerat ion by w ay of salary, perquisit es, allow ances and profit linked rew ard scheme t o it s Managing Direct or.
Annual increment s are decided by t he Compensat ion / Remunerat ion Commit t ee w it hin t he salary approved by members and are
normally effect ive from April 1, annually.
2. The Company pays sit t ing fees of ` 20,000/ - t o it s Non-Execut ive Direct ors for at t ending each Board of Direct ors meet ing.
3. The members of t he Company at t he fourt eent h Annual General Meet ing had approved t he payment and dist ribut ion of sum
not exceeding 1% of t he net profit s of t he Company calculat ed in accordance w it h t he provisions of Sect ions 198, 349 and 350
of t he Companies Act , 1956 by w ay of commission t o Non-Execut ive Direct ors for a period of 5 (five) years commencing from
April 1, 2011.
Det ails of compensat ion paid/ payable t o Non-Execut ive Direct ors during t he year are as under:
Name of Directors Commission ( ) SittingFees ( ) Total ( )
Mr. Chandru L. Raheja 0 80,000 80,000
Mr. Ravi C. Raheja 0 80,000 80,000
Mr. Neel C. Raheja 0 60,000 60,000
Mr. Gulu L. Mirchandani 300,000 80,000 380,000
Mr. Shahzaad S. Dalal 300,000 60,000 360,000
Prof. Nit in Sanghavi 300,000 60,000 360,000
Mr. Deepak Ghaisas 600,000 80,000 680,000
Mr. Nirvik Singh 300,000 40,000 340,000
Mr. B. S. Nagesh 300,000 60,000 360,000
Total 2,1 00,000 600,000 2,700,000
Det ails of remunerat ion paid t o M r. Govind Shrikhande, M anaging Direct or f or t he f inancial year 2012-2013 is as under:
Salary and Bonus ( ) Perquisites ( ) Contribution to Provident
Fund ( )
Total ( )
31,442,624 939,900 1,508,400 33,890,924
ESOPs
Det ails of grant of st ock opt ions t o and exercise of st ock opt ions by Mr. B. S. Nagesh, Vice Chairman under t he follow ing ESOP Schemes
is as under:
Scheme Date of
Grant
Options
Granted
Options vested
and exercised
Grant price ( ) Fair value on the
date of grant ( )
Vesting
period
ESOP 2008-1 29.04.09 100,000 100,000 55 55 38 mont hs
Det ails of grant of st ock opt ions t o and exercise of st ock opt ions by Mr. Govind Shrikhande, Managing Direct or under t he follow ing ESOP
Schemes is as under:
Scheme Date of
Grant
Options
Granted
Options vested
and exercised
Grant price ( ) Fair value on the
date of grant ( )
Vesting period
ESOP 2008-1 29.04.09 260,000 260,000 55 55 38 mont hs
ESOP 2008-2 24.03.10 24,000 24,000 191 191 3 Years
ESOP 2008-3 29.04.11 29,700 0 336 336 3 years
ESOP 2008-4 09.06.12 13,750 0 297 297 3 years
Service Contract, severance fees and notice period of Mr. Govind Shrikhande, Managing Director
Mr. Govind Shrikhande w as appoint ed as Managing Direct or for a period of 3 years w.e.f. 29t h July, 2010.
There is no separat e provision for payment of any severance fees. There is a not ice period of t hree mont hs from eit her side.
Shareholders Investor Grievance and Share Transfer Committee
I|e Ccpar] |as ccrst|tutec t|e Cc|ttee |r t|e ]ea| 2001. I|e Cc|ttee |cc|s |rtc |ec|essa| cl s|a|e|c|ce|s' ||evarces. I|e
Commit t ee also oversees t he performance of t he Regist rar and Share Transfer Agent s and recommends measures for overall improvement
in t he qualit y of invest or services.
No meet ing w as held during t he year 2012-13.
The Composit ion of t he Commit t ee is as follow s:
Name of Member Status
Mr. Ravi C. Raheja Chairman
Mr. Neel C. Raheja Member
Mr. B. S. Nagesh Member
V|. ||as|art Ve|ta, V|ce ||es|cert Lea| c Ccpar] Sec|eta|] cl t|e Ccpar] |as ceer ces|ratec as t|e Ccp||arce 0ll|ce|.
During t he year, t he Company has received 7 (seven) Communicat ions/ grievances, w hich w ere at t ended and resolved t o t he sat isfact ion
of t he Shareholders. No grievances w ere pending at t he year end.
Subsidiary Companies
C|ause 19 Cc|pc|ate Ccve|rarce cl ||st|r a|eeert cel|res a 'ate||a| rcr-||stec |rc|ar sucs|c|a|]' as ar ur||stec sucs|c|a|],
incorporat ed in India, w hose t urnover or net w ort h (i.e. paid up capit al and free reserves) exceeds 20% of t he consolidat ed t urnover or
net w ort h respect ively, of t he list ed holding company and it s subsidiaries in t he immediat ely preceding account ing year. In t his regard,
Hypercit y Ret ail (India) Lt d. a 51% subsidiary, is a mat erial non-list ed subsidiary of t he Company. Mr. Deepak Ghaisas and Mr. Nit in
Sanghavi, t he Independent Direct ors of t he Company are on t he Board of Hypercit y Ret ail (India) Lt d.
The Audit Commit t ee and Board of Direct ors of t he Company int er-alia, review t he annual financial st at ement s of Hypercit y Ret ail (India)
Ltc, c ct|e| sucs|c|a||es w||c| a|e cu|] ccrsc||catec w|t| arrua| l|rarc|a| stateerts cl t|e Ccpar].
The Board of Direct ors of t he Company also review s Minut es of t he Board Meet ings of unlist ed subsidiary companies.
General Body Meetings
Det ails of Annual General Meet ings held during last t hree years:
AGM for
Financial Year
ended
Date Time Location Special Resolutions
passed thereat
2011-2012 31st July, 2012 3.30 p.m. Nat ional St ock Exchange of
India Lt d., Exchange Plaza, NSE
Audit orium, Ground Floor, Bandra
Kurla Complex, Bandra (E),
Vuca| 100 051.
No special resolut ion has been passed.
2010-2011 26t h July, 2011 3.00 p.m. Nat ional St ock Exchange of
Vuca| 100 051.
Payment and dist ribut ion of upt o 1% of
t he net profit s by w ay of commission t o
Non-Execut ive Direct ors of t he Company
for a period of 5 (five) years commencing
from April 1, 2011.
2009-2010 29t h July, 2010 3.00 p.m. Nat ional St ock Exchange of
Vuca| 100 051.
No special resolut ion has been passed.
Postal Ballot
There w as no special resolut ion passed t hrough Post al Ballot during t he year 2012-13 and no special resolut ion is proposed t o be passed
t hrough Post al Ballot .
Disclosure on materially significant related party transactions
There w ere no mat erially relat ed part y t ransact ions t hat may have pot ent ial conflict w it h t he int erest of t he Company at large. The
t ransact ions bet w een t he Company and t he relat ed part ies are disclosed in Not es t o t he Account s in t he Annual Report .
Disclosure of Accounting Treatment
The financial st at ement s of t he Company comply w it h t he Account ing St andards referred t o in Sect ion 211(3C) of t he Companies Act ,
1956.
Board Disclosures Risk Management
The Company has laid dow n t he requisit e procedures t o inform t he Board Members about t he risk assessment and minimisat ion
procedures w hich are accordingly follow ed.
Details of non-compliance on matters relating to Capital Market
There have been no inst ances of non-compliances by us and no penalt ies and/ or st rict ures have been imposed on t he Company by St ock
Exchanges or SEBI or any st at ut ory aut horit y on any mat t er relat ed t o t he capit al market s during t he last t hree years.
Code of conduct for Prevention of Insider Trading Practices
In compliance w it h t he SEBI (Prohibit ion of Insider Trading) Regulat ions, 1992, as amended, t he Company has formulat ed, adopt ed and
implement ed Shoppers St op Code of conduct for prevent ion of Insider Trading in t he shares of t he Company.
Whistle Blower Policy
The Whist le Blow er Policy aims t o encourage all employees t o inform t he Company regarding any kind of misuse of Company propert y,
mismanagement or w rongful conduct prevailing in t he Company and no personnel has been denied access t heret o. The disclosure w ould
be sent t o t he Chairman of t he Audit Commit t ee/ t he Et hics Counselor w ho w ould invest igat e and recommend t o t he management of t he
Company t o t ake such disciplinary or correct ive act ion as may be deemed fit .
Compliance with non-mandatory requirements of Clause 49 of the listing agreement
The Company has volunt arily complied w it h t he non-mandat ory requirement s relat ing t o Remunerat ion Commit t ee and w hist le
blow er policy.
Management Discussion and Analysis
Management Discussion and Analysis is given as a separat e sect ion in t he Annual Report .
Proceeds from public issues
The Company has not raised any proceeds from public issue, right issue, preferent ial issues, et c. and t here are no unut ilised issue
proceeds during t he year under review.
Means of Communication
I|e cua|te||] |esu|ts a|e puc||s|ec w|t||r 18 |cu|s cl t|e Bca|c Veet|r, |r p|c|rert ca||] rewspape|s v|t. Eccrc|c I|es arc
Va|a|as|t|a I|es arc t|e sae a|e a|sc pcstec cr t|e Ccpar]'s wecs|te |ec|ate|]. /t t|e erc cl eac| cua|te|, t|e Ccpar]
does a Conference call w it h t he analyst s in order t o clarify t heir doubt s and queries.
I|e cca|r rae cl t|e Ccpar]'s wecs|te |s www.s|cppe|sstcp.cc arc uptc cate l|rarc|a| |esu|ts, cll|c|a| p|ess |e|eases arc
t he ot her informat ion about t he Company and it s business are available on t he w ebsit e.
||esertat|crs ace tc t|e |rst|tut|cra| |rvestc|s c| tc t|e ara|]sts a|e |ec|ate|] pcstec cr Ccpar]'s wecs|te |r c|ce| tc s|a|e
t he informat ion w it h public at large.
General Shareholders Information
(1) Annual General Meet ing:
Dat e, Time & Venue : 30t h July 2013 at 3.30 p.m.
: Nat ional St ock Exchange of India Lt d.,
Exchange Plaza, Dr. R. H. Pat il Audit orium,
Ground Floor, Bandra Kurla Complex,
Barc|a (East}, Vuca| 100 051.
(2) Financial Calendar : 1st April, 2012 t o 31st March, 2013
(3) Dat e of Book Closure : 23rd July, 2013 t o 30t h July, 2013 (Bot h days inclusive).
(4) Dividend payment dat e : 31st July, 2013
(5) List ing on t he St ock Exchanges : 1. BSE Limit ed
||||cte Jeejeec|c] Icwe|s, Da|a| St|eet, Vuca| 100 001.
2. Nat ional St ock Exchange of India Lt d.
Exchange Plaza, Bandra Kurla Complex,
Barc|a (East}, Vuca| 100 051.
The requisit e List ing Fees for t he financial year 2013-2014 has been paid t o bot h t he above St ock Exchanges w here t he equit y shares of
t he Company are list ed
(6) St ock Code:
BSE Limit ed. : 532638
Nat ional St ock Exchange of India Lt d. : SHOPERSTOP (Symbol)
(7) Stock Market Data for the period 1 st April, 201 2 to 31 st March, 201 3
Share price performance in comparison on BSE:
Month (201 2-1 3)
BSE Sensex No. of Shares
transacted High ( ) Low( ) High Low
April 396.00 333.80 17,664.10 17,010.16 103,256
May
355.00 312.00 17,432.33 15,809.71 35,289
June
343.00 288.20 17,448.48 15,748.98 424,199
July
392.00 335.55 17,631.19 16,598.48 859,398
August
393.85 336.60 17,972.54 17,026.97 181,986
Sept ember
417.45 335.00 18,869.94 17,250.80 916,440
Oct ober
451.90 321.10 19,137.29 18,393.42 198,523
November
442.00 385.25 19,372.70 18,255.69 245,373
December
494.00 391.15 19,612.18 19,149.03 1,718,298
January
473.90 412.85 20,203.66 19,508.93 436,177
February
454.00 384.50 19,966.69 18,793.97 105,937
March
418.50 362.55 19,754.66 18,568.43 164,894
Shoppers Stop Price Movement Chart BSE
250
300
350
400
450
500
Mar Feb Jan Dec Nov Oct Sept Aug July June May Apr
A
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o
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n
s
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Financial Year 2012-13
Shoppers Stop
Sensex
15000
16000
17000
18000
19000
20000
Share price performance in comparison on NSE:
Month (201 2-1 3)
NSE Nifty
No. of Shares
transacted
High ( ) Low ( ) High Low
April 395.00 333.95 5,378.75 5,154.30 1,648,003
May 367.30 313.00 5,279.60 4,788.95 875,215
June 341.95 288.20 5,286.25 4,770.35 3,276,285
July 391.65 335.10 5,348.55 5,032.40 2,103,537
August 393.40 342.35 5,448.60 5,164.65 739,442
Sept ember 417.50 344.00 5,735.15 5,215.70 3,638,483
Oct ober 452.00 376.25 5,815.35 4,888.20 1,141,817
November 441.70 389.00 5,885.25 5,548.35 1,074,893
December 496.90 400.10 5,965.15 5,823.15 6,761,815
January 473.50 413.35 6,111.80 5,935.20 1,630,794
February 454.00 384.50 6,052.95 5,671.90 493,153
March 419.55 362.40 5,971.20 5,604.85 483,253
Shoppers Stop Price Movement Chart NSE
250
300
350
400
450
500
Mar Feb Jan Dec Nov Oct Sept Aug July June May Apr
3500
4000
4500
5000
5500
6000
6500
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i
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Financial Year 2012-13 Shoppers Stop
Nifty
(8) Distribution of Shareholding as on 31 st March, 201 3 and 31 st March, 201 2:
Shareholding of
Nominal Value
As on 31 st March, 201 3 As on 31 st March, 201 2
Shareholders % to total Shareholders % to total
Number % to
total
% to
total
Number % to
total
% to
total
uptc 5000 9856 96.45 4,270,980 1.03 8,793 97.43 3,015,655 0.73
5001-10000 129 1.26 949,160 0.23 60 0.66 476,885 0.11
10001-20000 81 0.79 1,167,630 0.28 40 0.44 575,920 0.14
20001-30000 30 0.29 740,450 0.18 24 0.27 605,885 0.15
30001-40000 15 0.15 543,640 0.13 11 0.12 397,885 0.10
40001-50000 14 0.14 665,240 0.16 7 0.08 331,040 0.08
50001-100000 24 0.23 1,760,550 0.42 20 0.22 1,466,240 0.35
100001 and above 70 0.69 404,799,935 97.57 70 0.78 405,941,160 98.34
Total 1 0,21 9 1 00.00 41 4,897,585 1 00.00 9,025 1 00.00 41 2,81 0,670 1 00.00
Shareholding Pattern
The cat egories of shareholdings as on 31st March, 2013 and 31st March, 2012:
Category
As on 31 st March, 201 3 As on 31 st March, 201 2
No. of
Shares Held
% to total No. of
Shares Held
% to total
Promot ers
Mut ual Funds
Financial Inst it ut ion
Foreign Inst it ut ional Invest ors
Corporat e Bodies
|rc|ar |uc||c c |u|
Banks
|R|'s
Clearing Members (Transit )
Trust
56,029,674
8,782,564
10,607
7,933,430
4,825,594
5,283,302
8,640
83,265
22,437
4
67.52
10.58
0.01
9.56
5.82
6.37
0.01
0.10
0.03
0.00
56,029,674
5,334,046
0
11,294,642
5,004,472
4,860,916
0
21,830
16,550
4
67.86
6.46
0.00
13.68
6.06
5.89
0.00
0.03
0.02
0.00
Total 82,979,51 7 1 00.00 82,562,1 34 1 00.00
Shareholding of Board of Directors as on 31 March, 201 3:
Name of Director Status No. of Shares
Mr. Chandru L. Raheja Promot er Direct or 697,500
Mr. Ravi C. Raheja Promot er Direct or 1,100,000
Mr. Neel C. Raheja Promot er Direct or 1,150,000
Mr. Gulu L. Mirchandani* Direct or 4,000
Mr. Shahzaad S. Dalal Direct or 2,000
Prof. Nit in Sanghavi Direct or 0
Mr. Deepak Ghaisas* * Direct or 7,750
Mr. Nirvik Singh Direct or 0
Mr. B. S. Nagesh Vice Chairman 572,874
Mr. Govind Shrikhande Managing Direct or 263,921
* Mr. Gulu L. Mirchandani holds 4,000 Equit y Shares joint ly w it h his son as second holder.
* * Mr. Deepak Ghaisas holds 7,750 Equit y Shares joint ly w it h his w ife as second holder.
(9) Regist rar and Transfer Agent : Karvy Comput ershare Privat e Limit ed.
Plot No. 17-24, Vit t al Rao Nagar, Madhapur, Hyderabad - 500 081, (India).
Tel: + 91-40 2342 0818, Fax: + 91-40 2342 0814
(10) Share Transfer Syst em : The shares of t he Company are t raded on t he St ock Exchanges t hrough t he Deposit ory Syst em.
The ISIN allot t ed t o t he equit y shares of ` 5/ - each of t he Company is INE498B01024.
The request s received by t he Company/ RTA for demat erialisat ion/ remat erialisat ion are disposed
off expedit iously. Share cert ificat es duly endorsed are issued t o t he shareholders, w ho opt for t he
shares in t he physical form.
(11} Deate||a||sat|cr cl s|a|es . I|e t|ac|r |r Ccpar]'s ecu|t] s|a|es |s Ccpu|sc|||] |r ceate||a||sec cce lc| a|| |rvestc|s.
and liquidit y As on dat e, ent ire share capit al of t he Company except 330 equit y shares are being held in t he
demat erialised mode.
The shares of t he Company are regularly t raded at bot h t he St ock Exchanges w here t hey are
list ed, w hich ensure t he necessary liquidit y t o shareholders.
(12) Out st anding GDRs/ ADRs/ : The Company has not issued any ADR or GDR or w arrant s or any convert ible inst rument s, w hich
Warrant s or any Convert ible has likely impact on equit y share capit al.
inst rument s
(13) Address for correspondence : Mr. Prashant Meht a
V|ce ||es|cert Lea| c Ccpar] Sec|eta|]
Eureka Tow ers, B-Wing, 9t h Floor, Mindspace, Link Road, Malad (West ), Mumbai - 400 064.
Tel: (022) 4249 7000, Fax: (022) 2880 8877
E-mail ID: invest or@ shoppersst op.com
Web Address: w w w.shoppersst op.com
(14) St ore Locat ions : Western Region
1. 211-D, S. V. Rcac, /rc|e|| (West}, Vuca| 100 058
2. K|us|a| Cce|c|a| Ccp|e, C. V. Rcac, C|ecu| (West}, Vuca| 100 089
3. Sucu|c|a, 0|c Barc|a Ia|||es, L|r||r Rcac, Barc|a (West}, Vuca| 100 050
1. |||a| L|lest]|es, L. B. S. Va|, Vu|urc (West}, Vuca| 100 080
5. |rc|c|t Va||, L|r| Rcac, Va|ac (West}, Vuca| 100 0o1
6. Dynamix M all, Sant Dhyaneshw ar M arg, J VPD Scheme, Next t o Chandan Cinema Hall,
V||e |a||e (West}, Vuca| 100 019
7. Ccc|ej Ete|r|a, B W|r, S||vaj| |aa|, Vuca|-|ure Rcac, |ure 111 005
8. |uc|eus Va||, 1 C|u|c| Rcac, |ure 111 001
9. |ceStcp, |rc|c|t Va||, 2rc ||cc|, L|r| Rcac, Va|ac (West}, Vuca| 100 0o1
10. ||ctcre Va||, ||ct Sectc|C, C|||a|t|ara |rcust||a| /|ea, Vasartpu|, /u|aracac 131 210
11. |rc|c|t Va||, Vas||, |av| Vuca| 100 705
12. |ceStcp, |rc|c|t Va||, 2rc ||cc|, Vas||, |av| Vuca| 100 705
13. |rc|c|t Va||, Wacacr S|e||, |aa| Rcac, |ure 111 011
11. /|p|a 0re Va||, |ea| Vast|apu| La|e, Vast|apu|, /|ecacac 380 051
15. R C|t] Va||, LBS Va|, C|at|cpa| (West}, Vuca| 100 08o
1o. |ac|l|c Va||, S.|c 12, 13, S|ar|a| Set| Rcac, |ure 111 037
17. 0ppcs|te /|ar|a| Ia|||es, C|a|rsu|| Rcac, Latu| 113 512
18. |ceStcp, |rc|c|t Va||, 2rc ||cc|, Wacacr S|e||, |aa| Rcac, |ure 111 011
19. |ceStcp, R C|t], 2rc ||cc|, LBS Va|, C|at|cpa| (West}, Vuca| 100 08o
20. |ceStcp, || |c. 21o, I| Sc|ee -1, Vast|apu|, /|ecacac 380 051
21. Koregaon Park Shopping Cent re, S. No. 37, Hissa No. 4, Village M ouj e, Gorpadi Taluka,
Pune 111 001
Southern Region
1. Ca|uca Sta| Va||, Va|at| Rcac, /s|c| |aa|, Bera|u|u 5o0 025
2. Cce|ce_Vart||, C|curc ||cc|, |.S. |a|]a, Barre||atta Rcac, Bera|u|u 5oo 07o
3. Vart|| Scua|e, . 1. Sap|e Rcac, Va||es|wa|a, Bera|u|u 5o0 003
1. Sa|a|pu||]a Icwe| ||, |ea| |c|u Va||, Kc|ara|a |rc|. La]cut, Bera|u|u 5o0 095
5. ||ct |c. 1-11-251/1, /||ac|r Vars|cr, Beupet, |]ce|acac 500 01o
o. |c. 2, |a|||rtcr Rcac, C|etpet, C|erra| o00 031
7. CVK 0re Va||, Rcac |c. - 01, Barja|a ||||s, |]ce|acac 500 031
8. |rc|c|t Va||, /p||c Scltwa|e La]cut, ||tec| C|t], C]ce|acac, |]ce|acac 500 081
9. CVR |]ce|acac |rte|rat|cra| /||pc|t Ltc., Leve| D, |assere| Ie||ra| Bu||c|r,
S|as|acac /||pc|t, Rara|ecc], D|st||ct 500 109
10. |assere| Ie||ra| Bu||c|r, Bera|u|u |rte|rat|cra| /||pc|t, Devara|a|||, Bera|u|u 5o0 300
11. |ceStcp, Ra|eja |c|rt |c. 17/2, Va|at| Rcac, Bera|u|u 5o0 025
12. Raee Va||, 3o5, /rra Sa|a|, Ie]rapet, C|erra| o00 018
13. |ceStcp, Rc]a| Veera|s|| Va||, S|cp |c S008, Barre|etta Rcac, 0pp. Veera|s||
Iep|e, Bera|u|u 5o0 07o
11. |ceStcp, LE|L |ccr, V|ja]awaca 520 008
15. 1st and 2nd Floor, Celebros Shyamala Tow ers, 136 Acrot Road, Saligramam,
C|erra| o00 093
1o. LE|L |ccr Va||, V|ja]awaca 520 008
17. OM R, Ground Floor, Gopalan Signat ure Tow ers, Opp. RM Z Inf init y, Old M adras Road,
Bera|u|u 5o0 09o
18. Va|| cl V]sc|e, |rc||a |aa| Eters|cr, |ata|acac Vc|a||a, V.C.Rcac, V]sc|e 570 010
19. |ceStcp, |rc|c|t Va||, /p||c Scltwa|e La]cut, ||tec| C|t], C]ce|acac, |]ce|acac 500 081
20. uppe| C|curc ||cc|, |rc|c|t Va|| W||tel|e|c, E||| /|ea, W||tel|e|c, Bera|u|u 5o0 0oo
21. E- Cit y M all, S-7, No. 474, Near Rangavilas M ill, Avinash Road, Near PSG Krishnammal
Cc||ee, Cc|catc|e o11 001
22. HomeSt op, E- Cit y M all, Near Rangavilas M ill, Avinash Road, Near PSG Krishnammal
Cc||ee, Cc|catc|e o11 001
23. Soul Space Arena Out er Ring Road, Doddanekkundi Village, K R Puram Hobli,
Bera|u|u 5o0 037
21. |cestcp, ||cre| Va||et C|t], 112 Ve|ac|e|] Va|r Rcac, Ve|ac|e|], C|erra| o00 012
Northern Region
1. Ansal Plaza, Hudco Palace, Andrew Ganj, Khelgaon Marg, Near Sout h Ext ension,
|ew De||| 110 019
2. I|e Vet|cpc||tar Va||, Ve||au||-Cu|acr Rcac, Cu|acr, |a|]ara 122 002
3. S||p|a Va||, S||p|a Surc|t], 9 Va|c|av K|arc, |rc||apu|a, C|at|acac 201 012
1. |ceStcp, ||ct |c. //3, Se|ect C|t] Wa||, D|st||ct Cert|e, Sa|et, |ew De||| 110 017
5. E - Cit y Mall, Opp. Paryat an Bhavan, Beside Eldeco Green Compound, Gomt i Nagar,
Luc|rcw 22o 010
o. E|cs Va||, S||vaj| |a|ace, Rajcu|| Ca|cer, Rajcu||, |ew De||| 110 027
7. I|e C|eat |rc|a |a|ace, |ew 0|||a |rcust||a| Deve|cpert /|ea, |c|ca, utta| ||aces| 201 301
8. Vet|cpc||tar Va||, ||ess Erc|ave Rcac, D|st||ct Cert|e Sa|et, Sectc| ||, |ew De||| 110 017
9. Suncit y Trit on Mall, Near Bhaw ani Niket an College, Off Sikar Road, Sit arampura, Tehsil
Sawa|, Ja|pu| 302 012
10. /|p|a 0re Va||, VB| |a|s, Su|tar W|rc, Va|r C. I. Rcac, /||tsa| 113 010
11. /c|erce Va||, |e|scr Varce|a Rcac, Vasart Kurj, |ew De||| 110 070
12. DB C|t] Va||, /|e|a ||||s, B|cpa| 1o2 011
13. Spate |, Iec| |a||, Cu|acr, Spate Va||, Sc|ra Rcac, Cu|acr 122 002
11. Rc||r|, ||ct |c. 3c1, Iw|r D|st. Cert|e-1, Sectc| 10, /cjacert tc R|t|a|a Vet|c Stat|cr,
Rc||r|, |ew De||| 110 085
15. B|K Sta| Bu||c|r, 0pp. L| Cu|ucwa|a, /.B. Rcac, |rcc|e 152 001
1o. |ceStcp 2rc ||cc|, |ur Repuc||c Va||, Cct| |aa|, Luc|rcw 20o 010
17. MBD Neopolis Mall, Civil Lines, Beside Hot el Raddison, BMC Chow k,
CI Rcac, Ja|arca| 111 001
18. Wc||c I|ace |a||, Scut| B|cc|, 1JL| Va|, Va|v|]a |aa|, Ja|pu| 302 017
Eastern Region
1. 10/3, La|a Lajpat Ra| Sa|ar| (E||r Rcac}, Kc||ata 700 020
2. C|t] Cert|e, DC-1, Sectc|-1, Sa|t La|e, Kc||ata 700 0o1
3. Scut| C|t] Va||, 375, |||rce /rwa| S|a| Rcac, 0pp. Jcc|pu| |a||, Kc||ata 700 0o8
1. Jurct|cr Va||, Vcuta |a||cpu|, J. L. |c. 71, C|t] Cert|e, Du|apu| 713 21o
5. C|t] Cert|e, S|||u|| uttc|a]cr Icwrs||p, || 31, Vat|a|a, S|||u|| 731 010
To,
The Members of Shoppers Stop Limited
Report on the Financial Statements
1. We have audit ed t he accompanying financial st at ement s of SHOPPERS STOP LIMITED ( t he Company ), w hich comprise t he
Balance Sheet as at 31st March, 2013, t he St at ement of Profit and Loss and t he Cash Flow St at ement for t he year t hen ended, and
a summary of t he significant account ing policies and ot her explanat ory informat ion.
Managements Responsibility for the Financial Statements
2. I|e Ccpar]'s Varaeert |s |espcrs|c|e lc| t|e p|epa|at|cr cl t|ese l|rarc|a| stateerts t|at |ve a t|ue arc la|| v|ew cl t|e
financial posit ion, financial performance and cash flow s of t he Company in accordance w it h t he Account ing St andards referred t o
in Sect ion 211(3C) of t he Companies Act , 1956 ( t he Act ) and in accordance w it h t he account ing principles generally accept ed in
India. This responsibilit y includes t he design, implement at ion and maint enance of int ernal cont rols relevant t o t he preparat ion and
present at ion of t he financial st at ement s t hat give a t rue and fair view and are free from mat erial misst at ement s, w het her due t o
fraud or error.
Auditors Responsibility
3. Our responsibilit y is t o express an opinion on t hese financial st at ement s based on our audit . We conduct ed our audit in accordance
w it h t he St andards on Audit ing issued by t he Inst it ut e of Chart ered Account ant s of India. Those St andards require t hat w e comply
w it h t he et hical requirement s and plan and perform t he audit t o obt ain reasonable assurance about w het her t he financial st at ement s
are free from mat erial misst at ement .
4. An audit involves performing procedures t o obt ain audit evidence about t he amount s and t he disclosures in t he financial st at ement s.
I|e p|ccecu|es se|ectec ceperc cr t|e auc|tc|'s jucert, |rc|uc|r t|e assessert cl t|e ||s|s cl ate||a| |sstateert cl t|e
financial st at ement s, w het her due t o fraud or error. In making t hose risk assessment s, t he audit or considers t he int ernal cont rols
|e|evart tc t|e Ccpar]'s p|epa|at|cr arc la|| p|esertat|cr cl t|e l|rarc|a| stateerts |r c|ce| tc ces|r auc|t p|ccecu|es t|at
a|e app|cp||ate |r t|e c||custarces, cut rct lc| t|e pu|pcse cl ep|ess|r ar cp|r|cr cr t|e ellect|veress cl t|e Ccpar]'s
int ernal cont rol. An audit also includes evaluat ing t he appropriat eness of t he account ing policies used and t he reasonableness of t he
account ing est imat es made by t he Management , as w ell as evaluat ing t he overall present at ion of t he financial st at ement s.
5. We believe t hat t he audit evidence w e have obt ained is sufficient and appropriat e t o provide a basis for our audit opinion.
Opinion
6. In our opinion and t o t he best of our informat ion and according t o t he explanat ions given t o us, t he aforesaid financial st at ement s
give t he informat ion required by t he Act in t he manner so required and give a t rue and fair view in conformit y w it h t he account ing
principles generally accept ed in India:
(a} |r t|e case cl t|e Ba|arce S|eet, cl t|e state cl alla||s cl t|e Ccpar] as at 31st Va|c|, 2013,
(c} |r t|e case cl t|e Stateert cl ||cl|t arc Lcss, cl t|e p|cl|t cl t|e Ccpar] lc| t|e ]ea| ercec cr t|at cate, arc
(c) in t he case of t he Cash Flow St at ement , of t he cash flow s of t he Company for t he year ended on t hat dat e.
Emphasis of Matter
7. We draw at t ent ion t o:
(a) Not e 30 t o t he financial st at ement s regarding non-provision of service t ax for t he period 1st June, 2007 t o 31st March,
2010 on rent ing of immoveable propert ies given for commercial use, aggregat ing ` 1,659.56 lacs (2012: ` 1,659.56 lacs),
perc|r l|ra| c|spcsa| cl t|e appea| l||ec celc|e t|e |cr'c|e Sup|ee Ccu|t, |rte|-a||a, c|a||er|r t|e |et|cspect|ve |ev] cl t|e
service t ax. The mat t er is cont ingent upon t he final out come of t he lit igat ion.
Independent Audit ors' Report
Independent Audit ors' Report
(b) Not e 31 t o t he f inancial st at ement s regarding t he Company's f inancial involvement aggregat ing ` 33,058.39 lacs (2012:
` 28,801.49 lacs) in Hypercit y Ret ail (India) Limit ed, a subsidiary Company. The Company considers no provision f or any
loss is current ly necessary f or t he reasons st at ed in t he not e.
Our opinion is not qualified in respect of t hese mat t ers.
Report on Other Legal and Regulatory Requirements
8. /s |ecu||ec c] t|e Ccpar|es (/uc|tc|'s Repc|t} 0|ce|, 2003 ('t|e 0|ce|'} |ssuec c] t|e Cert|a| Ccve|rert |r te|s cl
Sect ion 227(4A) of t he Act , w e give in t he Annexure a st at ement on t he mat t ers specified in paragraphs 4 and 5 of t he Order.
9. As required by Sect ion 227(3) of t he Act , w e report t hat :
(a) We have obt ained all t he informat ion and explanat ions w hich t o t he best of our know ledge and belief w ere necessary for t he
purposes of our audit .
(b) In our opinion, proper books of account as required by law have been kept by t he Company so far as it appears from our
examinat ion of t hose books.
(c) The Balance Sheet , t he St at ement of Profit and Loss, and t he Cash Flow St at ement dealt w it h by t his Report are in agreement
w it h t he books of account .
(d) In our opinion, t he Balance Sheet , t he St at ement of Profit and Loss, and t he Cash Flow St at ement comply w it h t he Account ing
St andards referred t o in Sect ion 211(3C) of t he Act .
(e) On t he basis of t he w rit t en represent at ions received from t he direct ors as on 31st March, 2013 t aken on record by t he Board
of Direct ors, none of t he direct ors is disqualified as on 31st March, 2013 from being appoint ed as a direct or in t erms of
Sect ion 274(1)(g) of t he Act .
For Deloitte Haskins & Sells
(Firm Regist rat ion No. 117366W)
Shyamak R. Tata
Part ner
Place: Mumbai
Dat e: 30 April, 2013
To,
The Members of Shoppers Stop Limited
(Referred to in paragraph 8 under Report on Other Legal and Regulatory Requirements section of our report of even date)
|r cu| cp|r|cr arc accc|c|r tc t|e |rlc|at|cr arc ep|arat|crs |ver tc us, t|e ratu|e cl t|e Ccpar]'s cus|ress/act|v|t|es cu||r
t he year are such t hat clauses (vi), (viii), (x), (xii), (xiii), (xiv), (xviii), (xix) and (xx) of paragraph 4 of t he order, are not applicable t o t he
Company. In respect of t he ot her clauses, w e report as under:
1. In respect of it s fixed asset s:
(a) The Company has maint ained proper records showing full part iculars, including quant it at ive det ails and sit uat ion of t he fixed asset s.
(b) Some of t he fixed asset s w ere physically verified during t he year by t he Management in accordance w it h a regular programmes
of verificat ion, w hich, in our opinion, provides for physical verificat ion of all t he fixed asset s at reasonable int ervals. According
t o t he informat ion and explanat ions given t o us, no mat erial discrepancies w ere not iced on such verificat ion.
(c) The fixed asset s disposed off during t he year, in our opinion, do not const it ut e a subst ant ial part of t he fixed asset s of t he Company.
2. In respect of it s invent ories:
(a) As explained t o us, t he invent ories w ere physically verified during t he year by t he Management at reasonable int ervals.
(b) In our opinion and according t o t he informat ion and explanat ions given t o us, t he procedures of physical verificat ion of invent ories
follow ed by t he Management w ere reasonable and adequat e in relat ion t o t he size of t he Company and t he nat ure of it s business.
(c) In our opinion and according t o t he informat ion and explanat ions given t o us, t he Company has maint ained proper records of it s
invent ories and no mat erial discrepancies w ere not iced on physical verificat ion.
3. The Company has not t aken any loans, secured or unsecured, from companies, firms or ot her part ies covered in t he Regist er
maint ained under Sect ion 301 of t he Companies Act , 1956. In respect of loans, secured or unsecured, grant ed by t he Company t o
companies, firms or ot her part ies covered in t he Regist er maint ained under Sect ion 301 of t he Companies Act , 1956, according t o
t|e |rlc|at|cr arc ep|arat|crs |ver tc us, we |epc|t t|at.
(a) The Company has grant ed unsecured loans t o one part y during t he year aggregat ing ` 15,350 lacs. At t he year-end, t he out st anding
balance of such loans aggregat ed ` 8,350 lacs and t he maximum amount involved during t he year w as ` 11,350 lacs.
(b) The rat e of int erest and ot her t erms and condit ions of such loans are, in our opinion, prima facienot prejudicial t o t he int erest s
of t he Company.
(c) The receipt of principal and int erest in respect of such loans are as per st ipulat ions.
(d) There are no overdue amount s of principal or int erest as at 31st March, 2013.
4. In our opinion and according t o t he informat ion and explanat ions given t o us, t here is an adequat e int ernal cont rol syst em
commensurat e w it h t he size of t he Company and t he nat ure of it s business w it h regard t o purchases of invent ory and fixed asset s
and t he sale of goods and services. During t he course of our audit , w e have not observed any major w eakness in t he aforesaid
int ernal cont rol syst em.
5. In respect of cont ract s or arrangement s ent ered in t he Regist er maint ained in pursuance of Sect ion 301 of t he Companies Act , 1956,
t o t he best of our know ledge and belief and according t o t he informat ion and explanat ions given t o us:
(a) The part iculars of t he cont ract s or arrangement s referred t o in Sect ion 301 t hat needed t o be ent ered in t he Regist er maint ained
under t he said Sect ion have been so ent ered.
(b) Where each of such t ransact ions is in excess of ` 5 lacs in respect of any part y, w e are informed t hat t he nat ure of t ransact ions
is such t hat t here are no comparat ive prevailing market prices.
6. In our opinion, t he int ernal audit funct ions carried out during t he year by firms of Chart ered Account ant s appoint ed by t he Management
have been commensurat e w it h t he size of t he Company and t he nat ure of it s business.
7. According t o t he informat ion and explanat ions given t o us, and t he records of t he Company examined by us, in respect of st at ut ory dues:
(a) The Company has generally been regular in deposit ing undisput ed dues including Provident Fund, Invest or Educat ion and
||ctect|cr |urc, Ep|c]ees' State |rsu|arce, |rcce-Ia, Sa|es Ia, Wea|t| Ia, Se|v|ce Ia, Custcs Dut], Ec|se Dut], Cess
and ot her mat erial st at ut ory dues applicable t o it w it h t he appropriat e aut horit ies.
Annexure t o t he Independent Audit ors' Report Shoppers St op Lt d.
(c} I|e|e we|e rc urc|sputec acurts pa]ac|e |r |espect cl ||cv|cert |urc, |rvestc| Ecucat|cr arc ||ctect|cr |urc, Ep|c]ees'
State |rsu|arce, |rcce-Ia, Sa|es Ia, Wea|t| Ia, Se|v|ce Ia, Custcs Dut], Ec|se Dut], Cess arc ct|e| ate||a| statutc|]
dues in arrears as at 31st March, 2013 for a period of more t han six mont hs from t he dat e t hey became payable.
(c) There are no disput ed dues relat ing t o Wealt h Tax, Excise Dut y and Cess w hich have not been deposit ed w it h t he relevant
aut|c||t|es as at 31st Va|c|, 2013. I|e ceta||s cl cues cl |rcce Ia, Se|v|ce Ia, Sa|es Ia arc Custcs Dut] w||c| |ave rct
been deposit ed as on 31st March, 2013 on account of any disput es are given below :
Name of the Statute Nature of dues Period to which the
amount relates
Forum where dispute is
pending
( in lacs)
I|e |rcce-Ia /ct, 19o1 |rcce-Ia 2009-10 Appellat e Aut horit y
Tribunal level
228.20
||rarce /ct, 1991 Se|v|ce-Ia May 06 t o May 07
|.Y. 2001-05 c 2005-0o
Appellat e Aut horit y
Tribunal level
Tribunal level
1,001.91
370.20
The West Bengal Value
/ccec Ia /ct, 2005
Sa|es-Ia 2008-09
2009-10
Tribunal level
Commissioner level
5.58
3.11
Tamil Nadu Value Added Tax
Act , 2006
Sa|es-Ia 2007-08 Appellat e Aut horit y
Deput y Commissioner level
1.15
Cent ral Sales Tax Sa|es-Ia 2009-10 Appellat e Aut horit y
Commissioner level
7o.5o
The Cust oms Act , 1962 Cust om Dut y 2008
2008
Tribunal level
Commissioner level
5.17
7.06
8. |r cu| cp|r|cr arc accc|c|r tc t|e |rlc|at|cr arc ep|arat|crs |ver tc us, t|e Ccpar] |as rct celau|tec |r t|e |epa]ert cl
dues t o banks.
9. |r cu| cp|r|cr arc accc|c|r tc t|e |rlc|at|cr arc ep|arat|crs |ver tc us, t|e te|s arc ccrc|t|crs cl t|e ua|artees |ver c]
t he Company for loans t aken by it s joint vent ure companies and a subsidiary Company from banks are not prima facie, prejudicial t o
t he int erest s of t he Company.
10. |r cu| cp|r|cr arc accc|c|r tc t|e |rlc|at|cr arc ep|arat|crs |ver tc us, t|e te| |cars ccta|rec |ave ceer app||ec lc| t|e
purposes for w hich t hey w ere obt ained.
11. |r cu| cp|r|cr arc accc|c|r tc t|e |rlc|at|cr arc ep|arat|crs |ver tc us arc cr ar cve|a|| ea|rat|cr cl t|e Ba|arce S|eet cl
t|e Ccpar] arc ut|||sat|cr cl lurcs, we |epc|t t|at lurcs |a|sec cr s|c|t-te| cas|s |ave, prima facie, not been used during t he
]ea| lc| |cr-te| |rvestert.
12. To t he best of our know ledge and according t o t he informat ion and explanat ions given t o us, no fraud by t he Company and no
significant fraud on t he Company has been not iced or report ed during t he year.
(||| Re|st|at|cr |c. 1173ooW}
Shyamak R. Tata
Part ner
Place: Mumbai
Annexure t o t he Independent Audit ors' Report Shoppers St op Lt d.
/rrua| Repc|t 2012-13 | o9
In t erms of our report of even dat e. For and on behalf of t he Board of Direct ors
For Deloitte Haskins & Sells C. L. Raheja Ravi Raheja Govind S. Shrikhande
Chart ered Account ant s Chairman Direct or Cust omer Care Associat e &
Managing Direct or
Shyamak R. Tata Sanjay Chakravarti Prashant Mehta
Part ner Cust omer Care Associat e & Cust omer Care Associat e &
Mumbai, Dat ed: 30 April, 2013 Chief Financial Officer Vice President - Legal &
Mumbai, Dat ed: 30 April, 2013 Company Secret ary
(All amounts in lacs)
Notes Mar-1 3 Mar-12
EQUITY AND LIABILITIES
SHAREHOLDERS FUNDS
Share capit al 3 4,1 48.98 4,128.11
Reserves and surplus 4 65,233.22 61,721.66
69,382.20 65,849.77
NON CURRENT LIABILITIES
Long-t erm borrow ings 5 1 1 ,250.00 3,500.00
Deferred t ax liabilit ies (net ) 6 625.43 23.48
1 1 ,875.43 3,523.48
CURRENT LIABILITIES
Short -t erm borrow ings 7 1 9,433.71 18,406.87
Trade payables 8 28,467.66 23,607.54
Ot her current liabilit ies 9 1 3,609.86 14,234.41
Short -t erm provisions 10 1 ,028.07 928.08
62,539.30 57,176.90
1 43,796.93 126,550.15
ASSETS
NON CURRENT ASSETS
Fixed asset s
Tangible asset s 11 44,298.28 40,618.34
Int angible asset s 11 1 ,293.32 1,063.34
Capit al w ork in progress 2,744.86 2,977.07
48,336.46 44,658.75
Non-current invest ment s 12 33,094.74 28,421.29
Long-t erm loans and advances 13 27,540.34 25,028.65
Ot her non-current asset s 14 790.45
1 09,761 .99 98,108.69
CURRENT ASSETS
Invent ories 15 24,382.49 21,204.01
Trade Receivables 16 2,036.36 1,916.92
Cash and cash equivalent s 17 1 ,1 72.1 3 714.62
Short -t erm Loans and advances 18 5,857.36 3,892.48
Ot her current asset s 19 586.60 713.43
34,034.94 28,441.46
1 43,796.93 126,550.15
The accompanying not es 1 t o 41 are an int egral part of t he financial st at ement s.
Balance Sheet as at 31 March 2013 Shoppers St op Lt d.
Managing Direct or
INCOME
Revenue from operat ions 20 225,588.92 192,970.51
Ot her income 21 1 ,721 .47 1,868.76
Tot al revenue 227,31 0.39 194,839.27
EXPENSES
Purchase of st ock-in-t rade 22 1 43,936.81 127,093.82
C|ares |r |rvertc||es cl stcc|-|r-t|ace (|rc|ease}/cec|ease 23 (3,1 78.48) (6,090.35)
Employee benefit s expense 24 1 6,1 06.41 12,764.04
Finance cost s 25 3,1 88.1 4 2,503.60
Depreciat ion and amort isat ion expense 11 5,074.71 3,772.24
Ot her expenses 26 56,083.1 1 45,015.22
Tot al expenses 221 ,21 0.70 185,058.56
PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX 6,099.69 9,780.70
Except ional It em (Not e 40) 74.06
PROFIT BEFORE TAX 6,025.63 9,780.70
Tax expense 27 2,1 08.78 3,354.78
PROFIT FOR THE YEAR 3,91 6.85 6,425.92
EARNINGS PER EQUITY SHARE
Equit y shares of face value ` 5 each 28
Basic (`) 4.73 7.80
Dilut ed (`) 4.71 7.75
The accompanying Not es 1 t o 41 are an int egral part of t he financial st at ement s.
St at ement of Profit and Loss
for t he year ended 31 March 2013 Shoppers St op Lt d.
Mar-1 3 Mar-12
Cash flows from operating activities
Net profit before exceptional item and tax 6,099.69 9,780.70
Adjustments for:
Depreciat ion and Amort isat ion 5,074.71 3,772.24
Finance cost s 3,1 88.1 4 2,503.60
Loss on sale of fixed asset s 83.88 31.22
Int erest income (1 ,259.62) (1,665.77)
Operating profit before working capital changes 1 3,1 86.80 14,421.99
Adjustments for:
Invent ories (3,693.58) (6,090.35)
Trade receivables 7.39 (316.29)
Short -t erm loans and advances, ot her current asset s (1 ,991 .27) (1,189.23)
Lease deposit s (net ) (1 ,036.08) (1,954.04)
Deposit t ow ards Service Tax (1,824.88)
Long-t erm/ short -t erm provisions 99.99 61.85
Trade payables and ot her current liabilit ies 6,254.28 3,695.37
Cash generated from operations 1 2,827.53 6,804.42
Income t axes paid (net of refunds) (2,091 .89) (3,106.59)
Cash flow before exceptional item 1 0,735.64 3,697.83
Exceptional item:
Insurance claim received (Not e 40) 500.00
Net cash from operating activities (A) 1 1 ,235.64 3,697.83
Cash flow from investing activities
Purchase of fixed asset s (1 0,444.21 ) (13,323.27)
Sale of fixed asset s 92.48 18.96
Loans & advances t o subsidiaries/ group Companies (net ) (456.1 4) 3,666.91
Invest ment in subsidiaries (4,539.00) (4,701.45)
Invest ment in ot hers (0.50)
Dividend Received 125.72
Invest ment in joint vent ures (1 34.46)
Int erest Received 1 ,257.95 1,668.05
Considerat ion received on t ransfer of crossw ord business (refer not e 2 below ) 0.53 639.00
Net cash used in investing activities (B) (1 4,222.86) (11,906.58)
Cash flows from financing activities
Issue of share capit al 20.87 19.77
Securit ies premium on issue of share capit al 322.83 318.63
Dividend and dividend t ax paid (71 9.67) (695.84)
Proceeds from long t erm borrow ings 1 0,000.00 7,500.00
Repayment of long t erm borrow ings (4,000.00) (2,000.00)
Short t erms loans (net ) 1 ,026.84 5,857.92
Finance cost s paid (3,233.67) (2,437.75)
Net cash from financing activities (C) 3,41 7.20 8,562.73
Net Increase in cash and cash equivalents (A) + (B) + (C) 429.98 353.98
Cash and cash equivalent s as at beginning of t he year 590.40 236.42
Cash and cash equivalent s as at t he end of t he year (Not e 17) 1 ,020.38 590.40
429.98 353.98
Notes :
(1) Cash and Cash Equivalent s as per Balance Sheet (Not e 17) 1 ,1 72.1 3 714.62
Less: Deposit under lien & dividend account s 1 51 .75 124.22
Cash and Cash Equivalent s as report ed above 1 ,020.38 590.40
(2) Considerat ion receivable from t ransfer of Crossw ord business 0.53 639.53
Less: considerat ion received during t he year (0.53) (639.00)
Balance considerat ion receivable as at t he year end (0.53)
Cash Flow St at ement for t he year ended 31 March 2013
Managing Direct or
1 . COMPANY BACKGROUND
S|cppe|s Stcp L||tec ('SSL' c| 't|e Ccpar]'} was |rcc|pc|atec cr 1o Jure 1997. I|e Ccpar] |s eraec |r t|e cus|ress cl
ret ailing a variet y of household and consumer product s t hrough depart ment al st ores. As at 31 March 2013, t he Company operat ed
t hrough 55 such depart ment al st ores locat ed in different cit ies of India.
2. SIGNIFICANT ACCOUNTING POLICIES
a) Basis of accounting and preparation of financial statements
The financial st at ement s of t he Company have been prepared in accordance w it h t he Generally Accept ed Account ing Principles
in India (Indian GAAP) t o comply w it h t he Account ing St andards not ified under t he Companies (Account ing St andards) Rules,
2006 (as amended) and t he relevant provisions of t he Companies Act , 1956. The financial st at ement s have been prepared
on accrual basis under t he hist orical cost convent ion. The account ing policies adopt ed in t he preparat ion of t he financial
st at ement s are consist ent w it h t hose follow ed in t he previous year.
b) Use of estimates
The preparat ion of t he financial st at ement s in conformit y w it h Indian GAAP requires t he M anagement t o make est imat es
and assumpt ions considered in t he report ed amount s of asset s and liabilit ies (including cont ingent liabilit ies) and t he
report ed income and expenses during t he year. The M anagement believes t hat t he est imat es used in preparat ion of t he
financial st at ement s are prudent and reasonable. Fut ure result s could differ due t o t hese est imat es and t he differences
bet w een t he act ual result s and t he est imat es are recognised in t he periods in w hich t he result s are know n/ mat erialise.
c) Fixed Assets and Depreciation
Tangible Assets
Fixed asset s are st at ed at t heir original cost of acquisit ion less accumulat ed depreciat ion and impairment losses. Cost comprises
of all cost s incurred t o bring t he asset s t o t heir locat ion and w orking condit ion and includes all expenses incurred up t o t he dat e
of launching new st ores t o t he ext ent t hey are at t ribut able t o t he new st ores.
Depreciat ion is provided, pro rat a for t he period of use, by t he st raight line met hod (SLM), based on management 's est imat e of
useful lives of t he fixed asset s, or at t he SLM rat es prescribed in Schedule XIV t o t he Act w hichever is higher, at t he follow ing
annual rat es:
(% )
Air condit ioning and ot her equipment 5.0020.00
Furnit ure, fixt ures and ot her fit t ings o.3320.00
Comput ers 1o.2133.33
Vehicles 9.50
Leasehold Improvement s 5.8220.00
Intangible Assets
Int angible asset s are st at ed at t heir cost of acquisit ion, less accumulat ed amort isat ion and impairment losses. An int angible
asset is recognised, w here it is probable t hat t he fut ure economic benefit s at t ribut able t o t he asset w ill flow t o t he ent erprise
and w here it s cost can be reliably measured. The int angible asset s are amort ised over t he best est imat e of it s useful life on a
st raight -line basis.
Trademarks & Pat ent s and Comput er Soft w are are amort ised uniformly over a period of 10 and 6 years respect ively.
Notes to the Financial Statements
for the year ended 31 March, 2013 Shoppers St op Lt d.
Impairment of assets
An asset is considered as impaired in accordance w it h Account ing St andard 28 on Impairment of Asset s w hen at t he balance
sheet dat e t here are indicat ions of impairment and t he carrying amount of t he asset , or w here applicable, of t he cash generat ing
ur|t tc w||c| t|e asset ce|crs, eceecs |ts |eccve|ac|e acurt (|.e. t|e |||e| cl t|e asset's ret se|||r p||ce arc va|ue |r
use). The carrying amount is reduced t o t he recoverable amount and t he reduct ion is recognised as an impairment loss in t he
St at ement of Profit and Loss.
d) Investments
Non-current invest ment s are st at ed at cost . Where applicable, provision is made t o recognise a decline, ot her t han t emporary,
in t he value of non-current Invest ment s.
e) Revenue recognition
Sale of product s:
Revenue is recognised w hen it is earned and no significant uncert aint y exist s as t o it s realisat ion or collect ion.
Ret ail sales are recognised on delivery of t he merchandise t o t he cust omer, w hen t he propert y in goods and significant risks
and rew ards are t ransferred for a price and no effect ive ow nership cont rol is ret ained.
The propert y in t he merchandise of t hird-part y concession st ores locat ed w it hin t he main depart ment al st ore of t he Company
passes t o t he Company once a cust omer decides t o purchase an it em from t he concession st ore. The Company in t urn sells t he
it em t o t he cust omer and is accordingly included under Ret ail Sales.
The propert y in t he merchandise of t hird part y consignment st ock does not pass t o t he Company. Since, how ever, t he sale
of such st ock forms a part of t he act ivit ies of t he Company's depart ment al st ores, t he gross sales values and cost of t he
merchandise are disclosed separat ely and form part of t ot al Ret ail Revenue in t he St at ement of Profit and Loss.
Sales are net of discount s. Value Added Tax and Sales Tax are reduced from Ret ail Revenue.
In respect of gift vouchers and point aw ard schemes operat ed by t he Company, sales are recognised w hen t he gift vouchers or
point s are redeemed and t he merchandise is sold t o t he cust omer.
Ot her ret ail operat ing revenue:
Reverue l|c stc|e c|sp|a]s arc spcrsc|s||ps a|e |eccr|sec casec cr t|e pe||cc lc| w||c| t|e p|ccucts c| t|e spcrsc|s'
advert isement s are promot ed/ displayed. Facilit y management fees are recognised pro-rat a over t he period of t he cont ract .
f) Income from investments and loans
Int erest income is recognised on t ime proport ion basis. Dividend income is recognised w hen right t o receive it is est ablished.
g) Inventories
Invent ories are valued at t he low er of cost and net realisable value. Cost of invent ories comprises all cost s of purchase and
ot her cost s incurred in bringing t he invent ories t o t heir present condit ion and locat ion. Cost is det ermined by t he w eight ed
average cost met hod.
Merchandise received under consignment and concessionaire arrangement s belong t o t he consignors/ concessionaires and
a|e t|e|elc|e ec|ucec l|c t|e Ccpar]'s |rvertc||es.
h) Employee benefits
Compensat ion t o employees for services rendered is measured and account ed for in accordance w it h Account ing St andard 15
on Employee Benefit s.
Employee Benefit s such as salaries, allow ances, non-monet ary benefit s and employee benefit s under defined cont ribut ion
plans such as provident and ot her funds, w hich fall due for payment w it hin a period of t w elve mont hs aft er rendering service,
are charged as expense t o t he St at ement of Profit and Loss in t he period in w hich t he service is rendered.
Employee Benefit s under defined benefit plans and ot her long t erm employee benefit s such as grat uit y and compensat ed
absences w hich fall due for payment aft er complet ion/ cessat ion of employment or aft er a period of t w elve mont hs from
rendering service, are measured by t he project ed unit credit met hod, based on act uarial valuat ions, at each balance sheet dat e,
ca|||ec cut c] |rcepercert actua||es. I|e Ccpar]'s cc||at|crs |eccr|sec |r t|e ca|arce s|eet |ep|esert t|e p|esert va|ue
of obligat ions as reduced by t he fair value of plan asset s, w here applicable.
Act uarial Gains and losses are recognised immediat ely in t he St at ement of Profit and Loss.
i) Operating Lease
Operat ing Lease payment s are recognised as an expense in t he St at ement of Profit and Loss on a st raight -line basis or ot her
s]steat|c cases c|e |ep|esertat|ve cl t|e t|e patte|r cl t|e use|'s cerel|t.
j) Borrowing costs
Borrow ing cost s at t ribut able t o t he acquisit ion or const ruct ion of qualifying asset s, as defined in Account ing St andard 16 on
Borrow ing Cost s, are capit alised as part of t he cost of acquisit ion. Ot her borrow ing cost s are expensed as incurred.
k) Foreign currency transactions
Transact ions in foreign currencies are account ed at t he prevailing rat es of exchange on t he dat e of t ransact ion. Monet ary it ems
denominat ed in foreign currencies, are rest at ed at t he prevailing rat es of exchange at t he Balance Sheet dat e. All gains and
losses arising out of fluct uat ions in exchange rat es are account ed for in t he St at ement of Profit and Loss.
Exchange differences on forw ard exchange cont ract s, ent ered int o for hedging foreign exchange fluct uat ion risk in respect of
an underlying asset / liabilit y, are recognised in t he St at ement of Profit and Loss in t he report ing period in w hich t he exchange
rat e changes. Premium/ Discount on forw ard exchange cont ract s are recognised as an expense/ income over t he life of
t he cont ract .
l) Income-tax
Income t axes are account ed for in accordance w it h Account ing St andard 22 on Account ing for Taxes on Income. Taxes comprise
bot h current and deferred t ax.
Provision for current t ax is made t aking int o account admissible allow ances, disallow ances under t he provisions of Income Tax
Act , 1961, using t he applicable t ax rat es.
Deferred t ax result ing from t he t iming differences bet w een t axable income and account ing income is account ed using
applicable t ax rat es and law s, enact ed or subst ant ively enact ed as at t he Balance Sheet .
The deferred t ax asset is recognised and carried forw ard only t o t he ext ent t hat t here is reasonable/ virt ual cert aint y t hat t he
asset w ill be realised in fut ure.
m) Stock based compensation
The compensat ion cost of st ock opt ions grant ed t o employees is calculat ed using t he int rinsic value of t he st ock opt ions. The
compensat ion expense is amort ised uniformly over t he vest ing period of t he opt ion.
n) Earnings Per Share
The Company report s basic and dilut ed Earnings Per Share (EPS) in accordance w it h Account ing St andard 20 on Earnings Per
Share. Basic EPS is comput ed by dividing t he net profit or loss for t he year by t he w eight ed average number of equit y shares
out st anding during t he year. Dilut ed EPS is comput ed by dividing t he net profit or loss for t he year by t he w eight ed average
number of equit y shares out st anding during t he year as adjust ed for t he effect s of all dilut ive pot ent ial equit y shares, except
w here t he result s are ant i-dilut ive.
o) Cash Flow Statement
The Cash Flow St at ement is prepared by t he indirect met hod set out in Account ing St andard 3 on Cash Flow St at ement s and
present s t he cash flow s by operat ing, invest ing and financing act ivit ies of t he Company. Cash and cash equivalent s present ed
in t he Cash Flow St at ement consist of cash on hand and unencumbered bank balances.
p) Cash and Cash Equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposit s w it h banks. Cash equivalent s are short -t erm balances (w it h an original
mat urit y of t hree mont hs or less from t he dat e of acquisit ion), highly liquid invest ment s t hat are readily convert ible int o know n
amount s of cash and w hich are subject t o insignificant risk of changes in value.
q) Provision, Contingent Liabilities and Contingent Assets
Provisions involving subst ant ial degree of est imat ion in measurement are recognised w hen t here is a present obligat ion as a
result of past event s and it is probable t hat t here w ill be an out flow of resources. Cont ingent Liabilit ies are not recognised but
are disclosed in t he not es t o t he financial st at ement s. Disclosure is not made if t he possibilit y of an out flow of fut ure economic
benefit s is remot e. Cont ingent asset s are neit her recognised nor disclosed in t he financial st at ement s.
Mar-1 3 Mar-12
3. SHARE CAPITAL
3.1 Authorised
200,000,000 equit y shares of ` 5/ - each 1 0,000.00 10,000.00
3.2 Issued, subscribed and fully paid up shares
82,979,517 (2012 : 82,562,134) equit y shares of ` 5/ - each fully paid-up 4,1 48.98 4,128.11
4,1 48.98 4,128.11
3.3 Reconciliat ion of shares out st anding at t he beginning and end of t he year:
31 March 201 3 31 March 2012
Part iculars: Numbers ` Lacs Numbers ` Lacs
Equit y shares
At t he beginning of t he year 8,25,62,1 34 4,1 28.1 1 8,21,66,836 4,108.34
Issued during t he year - ESOP (Not e 3.4) 4,1 7,383 20.87 3,95,298 19.77
At the end of the year 8,29,79,51 7 4,1 48.98 8,25,62,134 4,128.11
3.4 Shares reserved for issue under opt ions: Mar-1 3 Mar-12
Employee St ock Opt ion Plan (ESOP)
Opt ions exercised during t he year 4,1 7,383 3,95,298
Opt ion Out st anding as at 5,92,756 8,53,367
For furt her det ails of ESOP schemes, refer Not e 35
3.5 Det ails of shareholders holding more t han 5% shares as at 31 March:
31 March 201 3 31 March 2012
Name of the Shareholder Shares held
(Nos)
Shares held
(% )
Shares held
(Nos)
Shares held
(%)
Palm Shelt er Est at e Development Pvt . Lt d. 1 ,1 8,1 3,300 1 4.24% 1,18,13,300 14.31%
Raghukool Est at e Development Pvt . Lt d. 82,63,300 9.96% 82,63,300 10.01%
Capst an Trading Pvt . Lt d. 81 ,29,768 9.80% 8,129,768 9.85%
Casa Maria Propert ies Pvt . Lt d. 79,1 3,300 9.54% 7,913,300 9.58%
Anbee Const ruct ion Pvt . Lt d. 65,1 1 ,762 7.85% 6,511,762 7.89%
Cape Trading Pvt . Lt d. 62,61 ,040 7.55% 6,261,040 7.58%
3.6 Ot her disclosures:
The Company has one class of equit y shares having a par value of ` 5 per share. Each equit y shareholder is eligible for one vot e per
share held. Each equit y shareholder is ent it led t o dividends as and w hen t he Company declares and pays dividend aft er obt aining
s|a|e|c|ce|s' app|cva|. D|v|cercs a|e pa|c |r |rc|ar Rupees.
During t he year ended 31st March 2013, t he amount of per share final dividend recognised as dist ribut ion t o equit y shareholders
w as ` 0.75 per share (2012: ` 0.75 per share).
Not es t o Financial St at ement s
for t he year ended 31 March, 2013 Shoppers St op Lt d.
Mar-1 3 Mar-12
4. RESERVES AND SURPLUS
Securities Premium Account:
Balance at beginning of t he year 45,956.03 45,637.40
Add: Received on allot ment of shares 322.83 318.63
46,278.86 45,956.03
General Reserve
Balance at beginning of t he year 1 ,249.63 928.33
Transferred from Surplus in t he St at ement of Profit and Loss 1 95.84 321.30
1 ,445.47 1,249.63
Surplus in the Statement of Profit and Loss
Opening Balance 1 4,51 6.00 9,131.05
Add: Profit for t he year 3,91 6.85 6,425.92
1 8,432.85 15,556.97
Appropriat ions:
Dividend proposed t o be dist ribut ed t o equit y shareholders-
` 0.75 per share (2012: ` 0.75 per share)
622.35 619.22
Tax on proposed dividend 1 05.77 100.45
Transferred t o General Reserve 1 95.84 321.30
923.96 1,040.97
Closing Balance 1 7,508.89 14,516.00
65,233.22 61,721.66
Employees' Stock Options outstanding
Balance at beginning of t he year - 5.10
Less: Transferred t o securit ies premium on opt ions exercised - 5.10
Closing balance - -
65,233.22 61,721.66
5. LONG TERM BORROWINGS
From banks
Term Loans (Secured) 1 3,500.00 7,500.00
Less: Current mat urit ies (Not e 9) 2,250.00 4,000.00
1 1 ,250.00 3,500.00
5.1 2013: Term Loans are secured by a first pari passu charge on st ock, book debt s, hypot hecat ion charge on credit card/ debit card
receivables (Escrow account ) and all t he movable fixed asset s of t he Company, bot h present & fut ure except ICICI Bank Term
loans w hich is secured by 1st Pari Passu charge on t he current asset s and all t he movable fixed asset s of t he Company bot h
Present & Fut ure excluding leasehold right s, lease deposit s & Shoppers St op Brands.
2012: Term Loans are secured by a first pari passu charge on st ock, book debt s, hypot hecat ion charge on credit card/ debit card
receivables (Escrow account ) and all t he movable fixed asset s of t he Company, bot h present and fut ure.
5.2 Terms of t he Facilit ies:
Loan Balance
Name of the Bank Rate of Interest Repayment Schedule Mar-1 3 Mar-12
HDFC Bank Lt d. 1 1 . 6 0 %( Pr evi ous
Year: 11.80%)
Repayable on 10t h April 2013. For 2012,
Loan is repayable in 5 mont hly Equal
Inst allment s from 10t h Dec. 2012
1 ,000.00 5,000.00
Bank of India 1 1 . 2 5 %( Pr evi ous
Year: 11.75%)
Repayable on 8t h June 2014 2,500.00 2,500.00
ICICI Bank Lt d. 11.75% Repa]ac|e |r 15 Ecua| 0ua|te||]
Inst allment s from 1st Sep. 2014
5,000.00 -
IDBI Bank Lt d. 12.00% Repa]ac|e |r 1 Ecua| 0ua|te||] |rsta||erts
from 1st Feb. 2014
5,000.00 -
Mar-1 3 Mar-12
6. DEFERRED TAX LIABILITIES (NET)
Major component s of Deferred t ax asset and liabilit y are as follow s:
Deferred t ax liabilit y
On fiscal allow ances on fixed asset s 1 ,034.43 724.89
1 ,034.43 724.89
Deferred t ax asset s
On provision for doubt ful debt s/ advances 1 38.04 108.67
On fiscal allow ances on expendit ure 270.96 592.74
409.00 701.41
Deferred t ax liabilit ies (Net ) 625.43 23.48
7. SHORT-TERM BORROWINGS
Loans from banks (secured) 1 6,501 .38 14,406.87
Loans from bank (unsecured) 932.33 -
Commercial papers (unsecured) 2,000.00 4,000.00
(maximum amount out st anding during t he year ` 11,500 |acs, ||ev|cus ]ea| ` 8,500 lacs)
1 9,433.71 18,406.87
7.1 2013: Term Loans are secured by a first pari passu charge on st ock, book debt s,
hypot hecat ion charge on credit card/ debit card receivables (Escrow account ) and all
t he movable fixed asset s of t he Company, bot h present & fut ure except ICICI Bank
Term loans w hich is secured by 1st Pari Passu charge on t he current asset s and all
t he movable fixed asset s of t he Company bot h Present & Fut ure excluding leasehold
right s, lease deposit s & Shoppers St op Brands.
2012: Term Loans are secured by a first pari passu charge on st ock,book debt s,
hypot hecat ion charge on credit card/ debit card receivables (Escrow account ) and all
t he movable fixed asset s of t he Company, bot h present and fut ure.
8. TRADE PAYABLES
V|c|c, Sa|| arc Vec|u erte|p||ses - -
0t|e| t|ar V|c|c, Sa|| arc Vec|u erte|p||ses 28,467.66 23,607.54
28,467.66 23,607.54
8.1 There are no Micro, Small and Medium Ent erprises, t o w hom t he Company ow es
dues w hich are out st anding for more t han 45 days during t he year. This informat ion as
required t o be disclosed under t he Micro, Small and Medium Ent erprise Development
Act , 2006 has been det ermined t o t he ext ent such part ies have been ident ified on t he
basis of informat ion available w it h t he Company.
Mar-1 3 Mar-12
9. OTHER CURRENT LIABILITIES
Current mat urit ies of long t erm borrow ings: secured (Not e 5) 2,250.00 4,000.00
Int erest accrued and not due on borrow ings 48.54 94.07
urpa|c c|v|cercs 0.46 0.46
Ot her liabilit ies:
a) Credit ors for capit al expendit ure 41 3.54 739.32
b) Liabilit y for gift vouchers/ point aw ard redempt ions 7,1 76.65 6,642.21
c) St at ut ory dues payable 1 ,740.52 1,172.81
d) Accrued Payroll 1 ,559.22 1,275.70
e) Securit y deposit s 1 92.57 169.74
f) Relat ed part ies payables (Not e 38) 98.21 98.25
g) Grat uit y 1 30.1 4 41.85
1 3,609.86 14,234.41
1 0. SHORT-TERM PROVISIONS
For Employee benefit s: Leave Encashment 299.96 208.42

For Proposed Dividend 622.34 619.21
For Corporat e Dividend Tax 1 05.77 100.45
728.1 1 719.66
1 ,028.07 928.08
1
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Mar-1 3 Mar-12
1 2. NON-CURRENT INVESTMENTS
(Trade, Unquoted at cost unless otherwise stated)
Investments in equity instruments
In subsidiary companies:
Shoppers' St op Services (India) Limit ed
50,000 Equit y Shares of ` 10/ - each Fully Paid 5.00 5.00
Less: Provision for diminut ion in value of invest ment (5.00) (5.00)

upasra I|ac|r L||tec

S|cppe|s' Stcp.cc (|rc|a} L||tec

Gat ew ay Mult ichannel Ret ail (India) Limit ed
2.45 2.45
Crossw ord Bookst ores Limit ed
95,62,500 Equit y Shares of ` 10/ - each Fully Paid 2,505.93 2,505.93
Hypercit y Ret ail (India) Limit ed
4,84,500 Equit y Shares of ` 10/ - each Fully Paid 67.61 67.61
In J oint Venture Companies:
Timezone Ent ert ainment Privat e Limit ed
133,39,488 (2012: 119,94,900) Equit y Shares of ` 10/ - each Fully Paid 1 ,333.94 1,199.49
Nuance Group (India) Privat e Limit ed
364,10,000 Equit y Shares of ` 10/ - each Fully Paid 3,641 .00 3,641.00
Others:
St argaze Propert ies Privat e Limit ed
1,000 Equit y Shares of ` 10/ - each Fully Paid 0.1 0 0.10
Ret ailers Associat ion of India
10,000 Equit y Shares of ` 10/ - each Fully Paid 1 .00 1.00
Reta||e|s /sscc|at|cr's S|||| Ccurc|| cl |rc|a 0.50 0.50
500 Equit y Shares of ` 100/ - each Fully Paid
Aest het ic Realt ors Privat e Limit ed
66 Equit y Shares of ` 10/ - each Fully Paid 0.01 0.01
Mar-1 3 Mar-12
1 3. NON-CURRENT INVESTMENTS (Contd.)
Investments in preference shares
In subsidiary companies:
Crossw ord Bookst ores Limit ed
100,00,000 5.5% Cumulat ive Reedemable 1 ,000.00 1,000.00
Preference Shares of ` 10/ - each Fully Paid
1310,70,000 7% Compulsorily Convert ible 1 4,1 82.20 14,182.20
Preference Shares of ` 10/ - each Fully Paid
10,36,00,000 (2012:5,82,10,000), 7% Cumulat ive Redeemable 1 0,360.00 5,821.00
Preference Shares of ` 10/ - each Fully paid
33,094.74 28,421.29
Aggregat e provision for diminut ion in value of non-current invest ment s 1 7.55 17.55
1 3. LONG-TERM LOANS AND ADVANCES
(unsecured, considered good unless ot herw ise st at ed)
Capit al Advances 1 ,390.26 956.28
Premises and ot her deposit s 1 3,665.57 12,629.49
Deposit t ow ards service t ax (Not e 30) 1 ,824.88 1,824.88
Advance income-t ax (net of provision) 744.06 158.57
Loans and advances t o subsidiary companies (Not e 38)
Ccrs|ce|ec ccc 9,389.32 9,140.14
Ccrs|ce|ec ccuctlu| 2,291 .00 2,291.00
1 1 ,680.32 11,431.14
Less: Provision for doubt ful loans and advances 2,291 .00 2,291.00
9,389.32 9,140.14
Loans and advances t o ot her relat ed part ies (Not e 38)
Ccrs|ce|ec ccc 526.25 319.29
27,540.34 25,028.65
1 4. OTHER NON-CURRENT ASSETS
Insurance Claim Receivable (Not e 40) 790.45 -
790.45 -
1 5. INVENTORIES
(At low er of cost and net realisable value)
St ock-in-t rade: Ret ail merchandise 24,382.49 21,204.01
Mar-1 3 Mar-12
1 6. TRADE RECEIVABLES
(unsecured)
Debt s out st anding for a period exceeding 6 mont hs
from t he dat e t hey are due for payment
Considered good 2.73 33.64
Considered doubt ful 1 2.40 12.40
Ot her Debt s, considered good * 2,033.63 1,883.28
2,048.76 1,929.32
Less: Provision for doubt ful debt s 1 2.40 12.40
2,036.36 1,916.92
* includes receivable from a subsidiary company on account of t ransfer of business
` Nil (2012 ` 0.53 lacs)
1 7. CASH AND CASH EQUIVALENTS
Balance w it h bank in current account s 41 7.60 344.97
Ot her bank balances:
Margin money account s (under lien against bank guarant ee) 1 51 .29 123.76
Dividend account s 0.46 0.46
Cash on hand 602.78 245.43
1 ,1 72.1 3 714.62
Of t he above, cash and cash equivalent s comprise:
Balance w it h banks in current account s 41 7.60 344.97
Cash on hand 602.78 245.43
1 ,020.38 590.40
1 8. SHORT TERM LOANS AND ADVANCES
(ursecu|ec, ccrs|ce|ec ccc ur|ess ct|e|w|se statec}
Advances for goods and rendering of services
Ccrs|ce|ec ccc 4,356.43 2,916.27
Ccrs|ce|ec ccuctlu| 393.73 393.73
4,750.1 6 3,310.00
Less: Provision for doubt ful advances 393.73 393.73
4,356.43 2,916.27
Advances t o employees 1 96.49 99.71
Prepaid expenses 1 ,304.44 876.50
5,857.36 3,892.48
1 9. OTHER CURRENT ASSETS
St at ut ory recoverables 586.60 713.43
586.60 713.43
Mar-1 3 Mar-12
20. REVENUE FROM OPERATIONS
Retail Sale of Products
Ow n merchandise (including concession sales) - Gross of t ax 227,048.25 194,276.55
253,1 60.09 216,565.89
Less: Value added t ax 1 2,073.84 10,505.10
222,779.66 190,289.04
Other Retail operating revenue
Facilit y management fees 1 ,284.1 8 836.39
Income from st ore displays and sponsorship Income 683.07 890.02
Direct market ing income 842.01 955.06
2,809.26 2,681.47
225,588.92 192,970.51
20.1 The gross retail volume of business and operations comprise:
Ow n merchandise 227,048.25 194,276.55
Ot her Ret ail operat ing income 2,809.26 2,681.47
255,969.35 219,247.36
21 . OTHER INCOME
Int erest Income:
Int erest Income from subsidiary companies 1 ,223.1 7 1,641.97
Int erest Income from ot hers 36.45 23.80
Compensat ion received for loss of business 432.00 117.61
Miscellaneous income 29.85 85.38
1 ,721 .47 1,868.76
22. PURCHASE OF TRADED GOODS
|u|c|ase cl t|ac|r cccs |eta|| e|c|arc|se 1 43,936.81 127,093.82
1 43,936.81 127,093.82
22.1 Details of purchase of traded goods
Apparels 81 ,51 9.01 69,460.54
Non-apparels 62,41 7.80 57,633.28
23. CHANGES IN INVENTORIES OF STOCK-IN-TRADE
Opening invent ory 21 ,204.01 15,113.66
Closing invent ory 24,382.49 21,204.01
(Increase)/ Decrease (3,1 78.48) (6,090.35)
Mar-1 3 Mar-12
24. EMPLOYEE COSTS
Salaries, allow ances and bonus 1 4,647.89 11,760.82
Cont ribut ion t o provident and ot her funds 1 ,035.1 8 672.89
St aff w elfare expenses 423.34 330.33
1 6,1 06.41 12,764.04
25. FINANCE COSTS
Int erest on bank borrow ings 2,386.29 1,738.76
Int erest - ot hers 680.98 656.99
Ot her borrow ing cost s 32.29 17.11
Bank charges 88.58 90.74
3,1 88.1 4 2,503.60
26. OTHER EXPENSES
Insurance 1 1 5.31 94.22
Lease rent and hire Charges (Not e 26.1) 21 ,644.47 17,887.09
Business conduct ing fees 1 ,268.49 1,027.70
Rat es and t axes 40.32 31.82
Repairs and maint enance
Bu||c|rs 5,082.78 4,008.19
0t|e|s 744.79 626.64
Legal and professional fees (Not e 26.2) 775.1 0 696.48
Housekeeping charges 1 ,1 49.29 870.96
Securit y charges 1 ,527.78 1,401.37
Comput er expenses 1 ,1 58.1 3 793.54
Conveyance and t ravelling expenses 1 ,290.59 1,027.75
Elect ricit y charges 6,399.40 4,804.53
Advert isement and publicit y 3,850.39 3,178.01
Sales promot ion 2,662.07 1,831.27
Charges on credit card t ransact ions 1 ,633.33 1,403.60
Packing mat erials 476.35 554.85
Loss on Sale of Fixed Asset s (net ) 83.88 31.22
Foreign exchange loss (net ) 1 57.31 27.09
Service t ax input credit expensed 4,252.24 2,579.51
Miscellaneous expenses 1 ,771 .09 2,139.38
56,083.1 1 45,015.22
Mar-1 3 Mar-12
26.1 Leasing Transactions
a) Operat ing lease rent als charged t o revenue: 1 1 ,044.67 10,559.11
b) Variable rent als charged t o revenue: 1 0,51 2.59 7,245.82
Variable rent for cert ain st ores is payable in accordance w it h t he lease agreement
as t he higher of (a) fixed minimum guarant ee amount and (b) revenue share
percent age.
c) The fut ure minimum rent al payment s in respect of non-cancellable lease for
premises are as follow s:
Not lat er t han one year 8,637.21 8,992.04
Lat er t han one year and not lat er t han five years 1 4,345.85 17,520.48
Lat er t han five years 620.1 2 942.67
The agreement s are execut ed for periods ranging from 33 t o 288 mont hs w it h a
non-cancellable period at t he beginning of t he agreement ranging from 33 t o 108
mont hs and having a renew able clause.
26.2 Payments to Auditors (excluding service tax):
i) Audit fees 37.95 34.50
ii) Ot her mat t ers 4.25 3.50
iii) Out of pocket expenses 2.54 0.80
44.74 38.80
27. Tax expenses comprise of:
Current t ax
- For t he year 2,006.54 3,005.70
- For t he earlier year (499.71 ) -
Deferred t ax
- For t he year 242.94 349.08
- For t he earlier year 359.01 -
2,1 08.78 3,354.78
28. EARNING PER EQUITY SHARE
Calculated as follows:
a) Profit at t ribut able t o equit y share holders (` In lacs) 3,91 6.85 6,425.92
b) Weight ed Number of equit y shares out st anding during t he year (Nos) 8,27,87,593 8,24,25,678
c) Weight ed Number of equit y shares out st anding during t he year aft er
adjust ment for dilut ion (Nos) 8,31 ,59,250 8,28,82,344
d) Nominal value per share (`) 5 5
e) EPS:
Basic (`) 4.73 7.80
Dilut ed (`) 4.71 7.75
Mar-1 3 Mar-12
29. CONTINGENT LIABILITIES AND COMMITMENTS:
a) Claims against t he Company not acknow ledged as debt s, comprising of:
(i) Income-t ax claims disput ed by t he Company relat ing t o disallow ances
aggregat ing
702.1 0 1,068.85
(ii) Service t ax, Sales t ax and ot her Indirect t ax claims disput ed by t he Company
relat ing t o issues of applicabilit y and classificat ion aggregat ing 1 ,496.75 1,419.05
(iii) Third part y claims arising from disput es relat ing t o cont ract s aggregat ing 236.1 9 236.19
b) Ot her mat t ers 52.25 52.25
c) Est imat ed amount of cont ract s remaining t o be execut ed on capit al account and
not provided for
3,927.78 2,427.87
d) Corporat e guarant ee given joint ly and severally w it h joint vent ure part ners t o banks
for loans t aken by Joint vent ure ent it ies
1 ,338.57 1,338.57
e) Corporat e guarant ee given joint ly and severally w it h t he promot er group company
for loans t aken by Hypercit y Ret ail (India) Lt d.
9,500.00 5,000.00
f) Bank Guarant ees 379.62 324.74
Note: Fut ure cash out flow s in respect of (a) above are det erminable only on receipt of
judgement s/ decisions pending w it h various forums/ aut horit ies.
30. SERVICE TAX
Pursuant t o levy of service t ax on rent ing of immovable propert ies given for commercial use, ret rospect ively w it h effect from
1 June 2007 by t he Finance Act , 2010, t he Company has, based on a legal advice, challenged t he said levy and, int er-alia, it s
ret rospect ive applicat ion. The Hon'ble Supreme Court passed an int erim order dat ed 14t h Oct ober, 2011, w it h regard t o t he levy
of service t ax on immovable propert y rent ed out for commercial use including it s ret rospect ive applicabilit y from 1st June, 2007 in
compliance of w hich, t he Company made an aggregat e deposit of ` 1824.88 lacs in respect of t he liabilit y for such service t ax upt o
30t h Sept ember, 2011. From Oct ober, 2011 t he Company has been account ing and paying for such service t ax regularly as per
direct ives of t he Supreme Court .
Pending t he final disposal of t he mat t er, t he Company cont inues not t o provide for t he ret rospect ive levy aggregat ing ` 1,659.56
Lacs for t he period 1st June, 2007 t o 31st March, 2010.
31 . The Company has financial involvement in a subsidiary company, namely Hypercit y Ret ail (India) Limit ed ('Hypercit y') as follow s:
Name of the Company Investment
in Equity and
Preference
Capital
Loans and
Advances
Total
Involvement
Hypercit y Ret ail (India) Limit ed 24,609.81 8,448.58 33,058.39
Hypercit y cont inues t o make losses and t he accumulat ed losses of ` 45,175.83 lacs as at 31st March, 2013 have subst ant ially
eroded it s Net w ort h as at t he year end. Hypercit y has business plans w it h st rat egic grow t h project ions, w hich it is confident of
achieving given t he business opport unit ies in domest ic ret ail and a cont inued financial support from t he Company. Based on t hese
plans, opport unit ies and business valuat ion by an independent valuer, t he Company considers t hat t here is no loss for w hich a
provision is current ly necessary in t hese financial st at ement s.
32. The Company has financial involvement in t w o joint vent ure companies, namely Nuance Group (India) Privat e Limit ed and Timezone
Ent ert ainment Privat e Limit ed, as follow s:
Name of the Company Investment
in Equity and
Preference
Capital
Loans and
Advances
Total
Involvement
Nuance Group (India) Privat e Limit ed 3,641.00 3,641.00
Timezone Ent ert ainment Privat e Limit ed 1,333.94 407.27 1,741.21
The Net w ort h of t hese companies have subst ant ially been eroded as at 31st March, 2013. Based on t he business plans of t hese
companies and t he business valuat ion by an independent valuer, no provision for any loss is current ly considered necessary in t hese
financial st at ement s.
33. SEGMENT REPORTING
The Company is primarily engaged in t he business of ret ail t rade t hrough ret ail and depart ment al st ore facilit ies, w hich in t he t erms
of Account ing St andard 17 on 'Segment Report ing', const it ut es a single report ing segment .
34. DERIVATIVES
a) The Company uses foreign currency forw ard cont ract s t o hedge it s risks associat ed w it h foreign currency exposures relat ing
t o t he underlying t ransact ions and firm commit ment s. The Company does not ent er int o any derivat ive inst rument s for t rading
and speculat ive purposes.
The follow ing are t he out st anding Forw ard Exchange Cont ract s ent ered int o by t he Company as at 31 March 2013.
Particulars 31 March 201 3 31 March 201 2
Number of Cont ract s 8 3 2
Type Buy Buy Buy
Foreign currency (in lacs) 7.70 GBP 1.3o uSD 2.08 uSD
INR Equivalent (in lacs) 644.12 75.50 104.36
b) Unhedged Foreign Currency exposure
The year-end foreign currency exposures t hat have not been hedged by a derivat ive inst rument or ot herw ise are given below :
In lacs In Foreign
currency
In lacs In Foreign
currency
Payable for purchase of Merchandise 242.15 GBP 2,92,128

Payable t ow ards Royalt y 64.95 uSD 1,18,879 45.59 uSD 89,992
5.48 GBP 6,632 12.46 GBP 15,034
35. ESOP schemes
a) Number of Employee
Stock Option Outstanding:
Number of
Options
Weighted
average
exercise price
Number of
Options
Weighted
average
exercise price
31 March 201 3 31 March 201 2
Out st anding at t he beginning of t he year 8,53,367 154.91 11,59,832 101.78
Grant ed during t he year 2,00,000 297.00 1,89,382 336.00
Lapsed/ Cancelled during t he year 43,228 1,00,549
Exercised during t he year 4,17,383 82.35 3,95,298 84.44
Surrendered during t he year
Out st anding at t he end of t he year 5,92,756 245.95 8,53,367 154.91
Det ails of year w ise grant and exercise:
Year / (date of Grant)
Options granted
(net of lapsed)
Exercised till
31 .03.201 2
Exercised in
201 2-1 3
Exercised till
31 .03.201 3
Outstanding
31 .03.201 3
2005-06 (28-12-2005) 1,12,328 1,12,328 1,12,328
2009-10 (29-04-2009) 9,58,740 5,63,460 3,34,760 8,98,220 60,520
2009-10 (24-03-2010) 3,60,300 75,900 81,400 1,57,300 2,03,000
2011-12 (29-04-2011) 1,52,549 1,223 1,223 1,51,326
2012-13 (09.06.2012) 1,77,910 1,77,910
4,1 7,383 5,92,756
b) New Schemes Launched
The compensat ion cost of st ock opt ions grant ed t o employees is calculat ed using t he int rinsic value of t he st ock opt ions.
201 2-1 3 201 1 -1 2
Dat e of grant 09.06.2012 29.04.2011
Number of opt ion grant ed 2,00,000 1,89,382
Cont ract ual life 4 years 4 years
Vest ing Schedule (from t he dat e
of grant )
First Year 30% 30%
Second Year 30% 30%
Third Year 40% 40%
Met hod of set t lement Equit y Equit y
Est imat ed Fair Values (Arrived at by
applying Black Scholes Opt ion
Pricing Model) 118.03 152.39
Model input s (share price at t he
grant dat e) ` 296.85 333.85
Exercise Price ` 297.00 336.00
Expect ed Volat ilit y 46.89% 52.34%
Risk free rat e of ret urn 8.06% 8.26%
c) The w eight ed average cont ract ual life of t he opt ions out st anding is 3.85 years
d) Ot her informat ion regarding employee share-based payment plans is as below :-
31 March 201 3 31 March 201 2
(i) Expense arising from employee share based payment plans
(ii) Impact on PAT if fair value met hod had been used inst ead of
Int rinsic Value Met hod
(202.35) (233.07)
(iii) EPS if fair value met hod have been used inst ead of
Int rinsic Value Met hod (`)
Bas|c 4.49 7.51
D||utec 4.47 7.47
(iv) ESOP Out st anding
Opening Balance 5.10
Less: Transfer t o securit ies premium on exercise of opt ions (5.10)
Less: Opt ions lapsed during t he year

(All amounts in lacs, unless otherwise stated)
36. EMPLOYEE BENEFITS 31 March 201 3 31 March 2012
Post-employment benefits
Defined cont ribut ion plans
Ccpar]'s ccrt||cut|cr tc ||cv|cert |urc 590.27 416.08
Defined benefit scheme-Gratuity (Funded)
I. Component of Employer Expense
Current Service Cost 87.96 80.46
Int erest Cost 42.30 33.75
Expect ed Ret urn on Plan asset s (38.86) (26.70)
Act uarial Losses/ (Gain) 1 01 .93 (16.76)
1 93.33 70.75
II. Change in Defined Benefit Obligations (DBO)
Present Value of DBO at t he Beginning of Period 497.66 421.82
Current Service Cost 87.96 80.46
Act uarial Losses/ (Gains) 1 24.99 (8.42)
Benefit s paid/ t ransferred (61 .92) (29.95)
Present Value of DBO at t he End of Period 690.99 497.66
III. Change in Fair Value of Assets
Plan Asset s at t he Beginning of Period 455.81 332.98
Expect ed Ret urn on Plan Asset s 38.86 26.70
Act uarial Gains/ (Losses) 23.06 8.34
Act ual Company Cont ribut ion 1 05.04 117.74
Plan Asset s at t he End of Period 560.85 455.81
IV. Net Asset/(Liability) Recognised in Balance Sheet
Present Value of Defined Benefit Obligat ion 690.99 497.66
Fair Value of Plan Asset s 560.85 455.81
St at us [ Surplus/ (Deficit )] (1 30.1 4) (41.85)
ur|eccr|sec |ast Se|v|ce Ccst
Net Asset / (Liabilit y) Recognised in Balance Sheet (1 30.1 4) (41.85)
V. Actuarial assumptions
Discount Rat e 8.00% p.a. 8.50% p.a.
Expect ed Ret urn on Plan Asset s 8.70% p.a. 8.60% p.a.
Rat e of increase in salaries 4.00% p.a. 4.00% p.a.
Rat e of At t rit ion 9.50% p.a. 8.50% p.a.
VI. Net Asset/(Liability) recognised in Balance Sheet (including experience adjustment impact)
31 Mar 201 3 31 Mar 201 2 31 Mar 201 1 31 Mar 201 0 31 Mar 2009
Present Value of t he Defined Benefit Obligat ion 690.99 497.66 421.82 262.51 280.43
Fair Value of t he Plan Asset s 560.85 455.81 332.98 262.51 280.43
Surplus/ (Deficit ) in t he Plan (1 30.1 4) (41.85) (88.84)
Experience Adjust ment s arising on Plan
L|ac|||t|es Lcsses/(Ca|rs} (35.86) (63.86) 108.69 (49.45) (0.44)
/ssets Ca|rs/(Lcsses} 9.88 8.35 3.29 (16.45) (15.81)
The Company expect s t o cont ribut e ` 311.66 lacs t o it s Grat uit y plan for t he next year.
In assessing t he Company's Post Ret irement Liabilit ies, t he Company monit ors mort alit y assumpt ions and uses up-t o-dat e mort alit y
t ables. The base being t he LIC 1994-96 ult imat e t ables.
Expect ed ret urn on plan asset s is based on expect at ion of t he average long t erm rat e of ret urn expect ed on invest ment s of t he fund
during t he est imat ed t erm of t he obligat ions.
The est imat es of fut ure salary increases considered in act uarial valuat ion t ake account of inflat ion, seniorit y, promot ion and ot her
relevant fact ors, such as supply and demand in t he employment market .
The grat uit y benefit scheme of t he Company is managed by Life Insurance Corporat ion of India (LIC). The Company is current ly aw ait ing
t he det ails of t he composit ion of t he plan asset s, by cat egory, from t he LIC for t he current and t he previous years and hence t he
disclosures as required by Account ing St andard (AS) 15 on Employee Benefit s have not been given.
37. INTEREST IN J OINT VENTURES:
The Company's int erest s, as a vent urer, in a joint ly cont rolled ent it ies are as follow s:
Name Principal Activities Proportion of ownership Interest
31 March 201 3 and 31 March 201 2
Nuance Group (India) Privat e Limit ed Airport ret ailing 50%
Timezone Ent ert ainment Privat e Limit ed Ent ert ainment 33.87 (2012, 33.oo}
The Company's share in t he asset s, liabilit ies, income and expenses (each w it hout eliminat ion of int er company t ransact ions)
relat ed t o it s int erest in t he joint vent ures are:
31 March 201 3 31 March 2012
I. ASSETS
Non-Current Assets
a) Fixed Asset s including capit al w ork in progress (Net ) 940.01 1,234.74
b) Long-t erm loans and advances 807.41 972.10
c) Ot her non-current asset s 0.52 12.57
Current Assets
a) Invent ories 71 4.67 657.18
b) Trade receivables 81 .70 94.42
c) Cash and cash equivalent s 691 .91 348.84
d) Short -t erm loans and advances 280.02 92.83
e) Ot her current asset s 54.67 25.87
II. LIABILITIES
Non-Current Liabilities
Long-t erm borrow ings 66.58
Ot her long t erm liabilit ies 1 .55 40.54
Long-t erm provisions 4.96 8.82
Current Liabilities
Short -t erm borrow ings 399.80 342.32
Trade payables 1 ,1 44.46 1,080.71
Ot her current liabilit ies 385.98 326.25
Short -t erm provisions 1 0.04 3.48
III. INCOME
Revenue from Operat ions 5,431 .00 4,605.43
IV. EXPENSES
Operat ional Expenses 4,856.99 4,180.05
Finance cost s 71 .85 73.50
Depreciat ion/ Amort isat ion 496.86 350.18
Provision for t axat ion
V. CONTINGENT LIABILITIES 1 82.1 8 657.32
Note: The Company's share in t he asset s, liabilit ies, income and expenses in Nuance Group (India) Privat e Limit ed is based on t he
audit ed financials for t he year ended 31 December 2012.
38. RELATED PARTY DISCLOSURES
Follow ing are t he mat erial t ransact ions w it h relat ed part ies
Nature Subsidiaries Companies
under common
control/
significant
influence (refer
(c) below)
J oint
Ventures
Key
Management
Personnel
Total
Purchase of Assets 1 2.1 7 1 2.1 7
Magna Warehousing & Dist ribut ion Pvt . Lt d. 12.17
( ) ( ) ( ) ( ) ( )
Sale of Assets 47.93 47.93
Trion Propert ies Privat e Limit ed 47.93
Purchase of Merchandise 1 93.72 1 93.72
Crossw ord Bookst ores Limit ed 190.07
Hypercit y Ret ail (India) Limit ed 3.65
(252.21) ( ) ( ) ( ) (252.21)
Sale of Merchandise 1 90.26 1 90.26
(252.46) (252.46)
( ) ( ) ( ) ( ) ( )
Payment of conducting fees/Lease Rent/
Common Area Maintenance Charges
1 1 3.82 4,629.22 4,743.04
Ivory Propert ies and Hot els Privat e Limit ed 1,492.76
Inorbit Malls (India) Privat e Limit ed 1,926.87
Trion Propert ies Privat e Limit ed 1,018.32
(116.99) (4,272.22) ( ) ( ) (4,389.21)
Interest Received 1 ,1 94.1 3 29.04 1 ,223.1 7
Hypercit y Ret ail (India) Limit ed 1,150.82
Timezone Ent ert ainment Pvt . Lt d. 29.04
(1,618.18) (23.79) ( ) ( ) (1,641.97)
Deposits Paid 0.90 80.1 8 81 .08
Inorbit Malls (India) Privat e Limit ed 44.70
( ) (35.48) ( ) ( ) (35.48)
Advance Given 1 2.65 1 2.65
Gat ew ay Mult ichannel Ret ail (India) Limit ed 12.65

Reimbursement of Expenses 409.25 1 68.1 8 577.43
( ) ( ) ( ) ( ) ( )
Expenses paid 22.09 22.09
Ret ailers Associat ion of India 11.83
Sanghavi Associat es Lt d. 10.26
( ) ( ) ( ) ( ) ( )
Expenses recovered 1 1 9.54 0.31 1 1 9.85
Nuance Group (India) Privat e Limit ed 0.31
(2.61) (10.27) (12.88)
Investments made 4,539.00 1 34.46 4,673.46
Preference Shares
4,539.00
Timezone Ent ert ainment Pvt . Lt d. 134.46
(4,701.45) ( ) ( ) (4,701.45)
Deposit received back 6.42 6.42
( ) ( ) ( ) ( ) ( )
Loan Given 1 5,753.00 200.00 1 5,953.00
Timezone Ent ert ainment Privat e Limit ed 200.00
(11,340.00) ( ) ( ) ( ) (11,340.00)
Recovery of Loan 1 6,028.00 1 6,028.00
(14,793.00) ( ) ( ) ( ) (14,793.00)
Remuneration to Directors 338.91 338.91
Govind Shrikhande 338.91
( ) ( ) ( ) (310.70) (310.70)
Commission and Sitting fees to Non
Executive Directors
27.00 27.00
Chandru L. Raheja 0.80
Ravi Raheja 0.80
Neel Raheja 0.60
B. S. Nagesh 3.60
Gulu L. Mirchandani 3.80
Shahzaad Dalal 3.60
Nit in Sanghavi 3.60
Deepak Ghaisas 6.80
Nirvik Singh 3.40
( ) ( ) ( ) (27.00) (27.00)
Balance outstanding at the year end
Payable
upasra I|ac|r L||tec 98.21
(98.25) Cr.
Receivables
Shoppers St op Services (India) Limit ed 1.04
(0.68) Dr.
Shoppers St op.Com (India) Limit ed 0.63
(0.29) Dr.
(8,852.95) Dr.
(958.51) Dr.
(581.80) Dr.
Gat ew ay Mult i Channel Ret ail (India) Limit ed 2,306.12
(2,291.00) Dr.
Timezone Ent ert ainment Privat e Limit ed 407.27
(200.00) Dr.
Nuance Group (India) Privat e Limit ed 118.98
(119.29) Dr.
(444.12) Dr.
(406.54) Dr.
The figure in bracket pertain to previous year.
Names of related parties and description of relationship:
a) Subsidiaries upasra I|ac|r L||tec, S|cppe|s Stcp.cc (|rc|a} L||tec,
Shoppers St op Services (India) Limit ed, Crossw ord Bookst ores Limit ed.
Gat ew ay Mult ichannel Ret ail (India) Limit ed.
b) Promot er direct ors having cont rol/ significant
influence over companies st at ed in (c) below
C.L. Raheja, Ravi C. Raheja, Neel C. Raheja
c) Companies in w hich t he persons st at ed in (b)
above have cont rol/ significant influence
Ivory Propert ies and Hot els Privat e Limit ed, K. Raheja Corp. Privat e Limit ed.
K. Raheja Privat e Limit ed, Inorbit Malls (India) Privat e Limit ed
Avacado Propert ies and Trading India Privat e Limit ed, K. Raheja IT Park
(Hyderabad) Privat e Limit ed, Trion Propert ies Privat e Limit ed,
Magna Warehousing and Dist ribut ion Privat e Limit ed
d) Joint Vent ures Nuance Group (India) Privat e Limit ed
Timezone Ent ert ainment Privat e Limit ed.
e) Key Management Personnel Execut ive Direct or:
Non Execut ive Direct ors:
Govind Shrikhande
Chandru L. Raheja
Ravi Raheja
Neel Raheja
B. S. Nagesh
Gulu L. Mirchandani
Shahzaad Dalal
Nit in Sanghavi
Deepak Ghaisas
Nirvik Singh
Mar-1 3 Mar-12
39. Additional notes
a) Value of Import s on CIF Basis:
Capit al Goods 381 .46 185.17
Purchase of Merchandise 3,883.05 3,160.55
4,264.51 3,345.72
b) Expendit ure in foreign currency:
Consult ancy/ Professional fees 1 69.75 154.31
Royalt y 76.39 65.59
Commission paid t o Direct ors 6.00 6.00
Sit t ing fees paid t o a direct or 1 .20 1.20
Ot hers 303.25 150.62
556.59 377.72
c) Earnings in foreign exchange:
Foreign currency and foreign credit card collect ion on sale of merchandise 5,393.36 4,704.40
5,393.36 4,704.40
40. I|e Ccpar]'s assets (|rc|uc|r |rvertc|]} we|e cest|c]ec/caaec |r a l||e, cr 21 Jure, 2012, at |ts stc|e |r Kc|eacr |a||,
Pune. The Company has filed claim w it h t he insurance company and, t he survey by t he insurance company is under process.
The Company is adequat ely insured (including for mat erials damage and for loss of profit s) and has set up a receivable of
` 790.45 lacs (net of on account receipt of ` 500 lacs) from t he insurance company in respect of t he value of t he asset dest royed/
caaec casec cr t|e ccpar]'s cu||ert cest est|ates arc |eascrac|e ce|ta|rt] ccrs|ce||r t|e |epc|ts cl t|e |e|evart
aut horit ies and t he Company's past experience. The net loss of ` 74.06 lacs on t his account , primary on policy exclusions, has
been disclosed as an except ional it em. The operat ions of t he st ore remain suspended.
41 . Previous year's figures have been regrouped/ reclassified w herever necessary t o correspond w it h t he current year's
classificat ion/ disclosure.
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Financial Informat ion of Subsidiary Companies
Shoppers Stop Limited
Consolidated Financial Statements
201 2-1 3
To,
The Board of Direct ors of Shoppers St op Limit ed
1. Report on the Consolidated Financial Statements
We have audit ed t he accompanying consolidat ed financial st at ement s of SHOPPERS STOP LIMITED (t he Company ), and it s
subsidiaries ( t he Group ), w hich comprise t he Consolidat ed Balance Sheet as at 31st March, 2013, t he Consolidat ed St at ement
of Profit and Loss and t he Consolidat ed Cash Flow St at ement for t he year t hen ended, and a summary of t he significant account ing
policies and ot her explanat ory informat ion.
2. Managements Responsibility for the Consolidated Financial Statements
The Companys Management is responsible for t he preparat ion of t hese consolidat ed financial st at ement s t hat give a t rue and
fair view of t he consolidat ed financial posit ion, consolidat ed financial performance and consolidat ed cash flow s of t he Group in
accordance w it h t he account ing principles generally accept ed in India. This responsibilit y includes t he design, implement at ion and
maint enance of int ernal cont rol relevant t o t he preparat ion and present at ion of t he consolidat ed financial st at ement s t hat give a t rue
and fair view and are free from mat erial misst at ement , w het her due t o fraud or error.
3. Auditors Responsibility
Our responsibilit y is t o express an opinion on t hese consolidat ed financial st at ement s based on our audit . We conduct ed our audit in
accordance w it h t he St andards on Audit ing issued by t he Inst it ut e of Chart ered Account ant s of India. Those St andards require t hat
w e comply w it h et hical requirement s and plan and perform t he audit t o obt ain reasonable assurance about w het her t he consolidat ed
financial st at ement s are free from mat erial misst at ement .
4. An audit involves performing procedures t o obt ain audit evidence about t he amount s and t he disclosures in t he consolidat ed
financial st at ement s. The procedures select ed depend on t he audit or s judgement , including t he assessment of t he risks of mat erial
misst at ement of t he consolidat ed financial st at ement s, w het her due t o fraud or error. In making t hose risk assessment s, t he audit or
considers int ernal cont rol relevant t o t he Companys preparat ion and present at ion of t he consolidat ed financial st at ement s t hat
give a t rue and fair view in order t o design audit procedures t hat are appropriat e in t he circumst ances, but not for t he purpose of
expressing an opinion on t he effect iveness of t he Companys int ernal cont rol. An audit also includes evaluat ing t he appropriat eness
of t he account ing policies used and t he reasonableness of t he account ing est imat es made by t he Management , as w ell as evaluat ing
t he overall present at ion of t he consolidat ed financial st at ement s.
5. We believe t hat t he audit evidence w e have obt ained is sufficient and appropriat e t o provide a basis for our audit opinion.
6. Opinion
In our opinion and t o t he best of our informat ion and according t o t he explanat ions given t o us, and based on t he considerat ion of t he
report s of ot her audit ors on t he financial st at ement s of t he subsidiaries and joint ly cont rol ent it y referred t o below in t he ot her mat t er
paragraph, t he aforesaid consolidat ed financial st at ement s give a t rue and fair view in conformit y w it h t he account ing principles
generally accept ed in India:
(a) in t he case of t he Consolidat ed Balance Sheet , of t he st at e of affairs of t he Group as at 31st March, 2013;
(b) in t he case of t he Consolidat ed St at ement of Profit and Loss, of t he loss of t he Group for t he year ended on t hat dat e; and
(c) in t he case of t he Consolidat ed Cash Flow St at ement , of t he cash flow s of t he Group for t he year ended on t hat dat e.
7. Emphasis of Matter
We draw at t ent ion t o Not e 30 t o t he Consolidat ed Financial St at ement s regarding non-provision of service t ax for t he period
1st June, 2007 t o 31st March, 2010 on rent ing of immoveable propert ies given for commercial use, aggregat ing ` 2,010.90 lacs (2012:
` 2,010.90 lacs), pending final disposal of t he appeal filed before t he Honble Supreme Court , int er-alia, challenging t he ret rospect ive
levy of t he service t ax. The mat t er is cont ingent upon t he final out come of t he lit igat ion.
Our report is not qualified in respect of t his mat t er.
8. Other Matter
We did not audit t he financial st at ement s of cert ain subsidiaries and one joint ly cont rolled ent it iy, w hose financial st at ement s reflect
t ot al asset s (net ) of ` 6,936.33 lacs as at 31st March, 2013, t ot al revenues of ` 10,324.47 lacs and net cash flow s amount ing t o
` 17.74 lacs for t he year ended on t hat dat e, as considered in t he consolidat ed financial st at ement s. These financial st at ement s
have been audit ed by ot her audit ors w hose report s have been furnished t o us by t he Management and our opinion, in so far as it
relat es t o t he amount s and disclosures included in respect of t hese subsidiaries and joint ly cont rolled ent it y, is based solely on t he
report s of t he ot her audit ors.
Our report is not qualified in respect of t his mat t er.
(Firm Regist rat ion No. 117366W)
Shyamak R. Tata
Part ner
(Membership No. 38320)
Place: Mumbai
Independent Audit ors' Report Shoppers St op Lt d.
Consolidat ed Balance Sheet as at 31 March 2013
Managing Direct or
EQUITY AND LIABILITIES
SHAREHOLDERS FUNDS
Share capit al 3 4,1 48.98 4,128.11
Reserves and surplus 4 45,942.02 47,476.54
50,091 .00 51,604.65
MINORITY INTEREST 457.1 3 394.98
NON-CURRENT LIABILITIES
Long-t erm borrow ings 5 1 6,624.98 9,441.57
Deferred t ax liabilit ies (net ) 6 626.36 23.48
Ot her long-t erm liabilit ies 7 1 .55 80.82
1 7,252.89 9,545.87
CURRENT LIABILITIES
Short -t erm borrow ings 8 30,442.99 28,828.69
Trade payables 9 38,1 43.02 31,980.63
Ot her current liabilit ies 10 1 6,1 94.1 8 17,285.55
Short -t erm provisions 11 1 ,1 25.92 998.42
85,906.1 1 79,093.29
1 53,707.1 3 140,638.79
ASSETS
NON-CURRENT ASSETS
Fixed asset s
Tangible asset s 12 62,052.64 59,815.75
Int angible asset s 12 2,1 54.1 0 1,792.21
Capit al w ork-in-progress 3,1 85.35 3,190.55
Int angible asset s under development 3.03 14.91
67,395.1 2 64,813.42
Goodw ill on consolidat ion 9,874.51 9,873.82
Non-current invest ment s 13 1 .61 1.61
Deferred Tax Asset s (net ) 14 2.53
Long-t erm loans and advances 15 23,956.92 21,554.24
Ot her non-current asset s 16 922.08 537.88
1 02,1 50.24 96,783.50
CURRENT ASSETS
Invent ories 17 36,981 .95 33,113.41
Trade Receivables 18 3,21 7.1 2 2,630.72
Cash and cash equivalent s 19 2,678.1 3 1,501.70
Short -t erm loans and advances 20 7,572.75 5,866.31
Ot her current asset s 21 1 ,1 06.94 743.15
51 ,556.89 43,855.29
1 53,707.1 3 140,638.79
(All amounts in in lacs)
Not es Mar-1 3 Mar-12
A. CONTINUING OPERATIONS
INCOME
Revenue from operat ions 22 31 7,71 9.08 278,706.99
Ot her income 23 689.20 756.96
Tot al revenue 31 8,408.28 279,463.95
EXPENDITURE
Purchase of st ock-in-t rade 24 21 1 ,747.94 192,629.16
Changes in Invent ories of st ock-in-t rade (increase)/ decrease 25 (3,862.42) (8,065.04)
Employee benefit s expenses 26 23,593.27 19,908.74
Finance cost s 27 5,465.77 4,216.47
Depreciat ion and amort isat ion expenses 12 7,907.39 6,093.42
Ot her expenses 28 76,627.01 63,909.48
Tot al expenses 321 ,478.96 278,692.23
(LOSS)/PROFIT FROM CONTINUING OPERATIONS BEFORE TAX (3,070.68) 771.72
Except ional It em (Not e 38) 74.06
(Loss)/ Profit before t ax (3,1 44.74) 771.72
Tax expense 31 2,275.28 3,216.96
(LOSS)/PROFIT FOR THE YEAR (5,420.02) (2,445.24)
B. DISCONTINUING OPERATIONS
(LOSS)/PROFIT FROM DISCONTINUING
OPERATIONS BEFORE TAX 37 (8.05) 3.37
Tax expenses
(LOSS)/PROFIT FOR THE YEAR (8.05) 3.37
C. TOTAL OPERATIONS
LOSS FOR THE YEAR BEFORE MINORITY INTEREST (5,428.07) (2,441.87)
Minorit y Int erest Share of loss 4,298.85 4,343.30
(LOSS)/PROFIT FOR THE YEAR (1 ,1 29.22) 1,901.43
EARNINGS PER EQUITY SHARE 32
Equit y shares of face value ` 5 each
Basic (`) (1 .36) 2.31
Dilut ed (`) (1 .36) 2.29
Consolidat ed St at ement of Profit & Loss for t he year ended 31 March 2013
Managing Direct or
Mar-1 3 Mar-12
Cash flows from operating activities
Net (Loss)/profit before exceptional item and tax (3,078.73) 775.09
Adjustments for:
Depreciation, Amortisation 7,907.39 6,093.42
Finance costs 5,465.77 4,216.75
Loss/(Gain) on account of stake increase/dilution in a joint venture (216.49)
Loss on sale of fixed assets 1 07.51 62.89
Provision for advances/doubtful debts 47.88 (9.74)
Interest income (77.67) (77.20)
Operating Profit before working capital changes 1 0,372.1 5 10,844.72
Inventories (4,383.64) (8,058.74)
Trade receivables (586.40) (441.85)
Short term loans and advances, other current assets (2,047.67) (544.60)
Long term loans and advances 75.96 (191.13)
Other non-current assets 406.25 (537.88)
Lease deposits (net) (1 ,252.34) (2,017.45)
Deposit towards service tax (2,179.70)
Long term liabilities (79.28) (9.62)
Short term provisions 1 27.50 (85.89)
Trade payables and other current liabilities 7,770.76 5,947.89
Cash generated from operations 1 0,403.30 2,725.75
Income taxes paid (net of refunds) (2,21 3.31 ) (3,252.37)
Cash flow before exceptional items 8,1 89.99 (526.62)
Exceptional item:
Insurance claim (Note 39) 500.00
Net cash from/(used in) operating activities (A) 8,689.99 (526.62)
Cash flow from investing activities
Purchase of fixed assets (1 2,257.40) (17,484.81)
Sale of fixed assets 1 53.20 167.29
Purchase of interest in a joint venture/subsidiary (1 34.46) (2.45)
Purchase of other investment (0.50)
Interest received 77.67 80.17
Net cash used in investing activities (B) (1 2,1 60.99) (17,240.30)
Cash flows from financing activities
Issue of share capital 20.87 19.77
Securities premium on Issue of shares capital 322.83 318.63
Issue of share capital to minority shareholders 4,361 .00 4,514.73
Dividend and dividend tax paid (71 9.67) (716.23)
Proceeds from long-term borrowings 1 0,000.00 14,000.00
Repayment of long-term borrowings (5,366.59) (7,121.14)
Short-term loans (net) 1 ,61 4.31 10,390.15
Finance costs paid (5,51 4.87) (4,209.71)
Net cash from financing activities (C) 4,71 7.88 17,196.20
Net Increase/(Decrease) in cash and cash equivalents (A)+ (B)+ (C) 1 ,246.88 (570.72)
Cash and cash equivalents as at beginning of the year 1 ,01 9.43 1,590.15
Cash and cash equivalents as at the end of the year 2,266.31 1,019.43
1 ,246.88 (570.72)
Note:
Cash and Cash Equivalents as per Balance sheet (see note 19) 2,678.1 3 1,501.70
Less: Balance under lien/earmarked with banks 41 1 .82 482.27
Cash and Cash Equivalent as reported above 2,266.31 1,019.43
The accompanying Notes 1 to 40 are an integral part of the financial statements.
Consolidat ed Cash Flow St at ement for t he year ended 31 March, 2013
President & Chief Execut ive Officer &
1 . COMPANY BACKGROUND
Shoppers St op Limit ed (SSL or t he Company) w as incorporat ed on 16 June, 1997. The Company is engaged in t he business of
ret ailing a variet y of household and consumer product s and books t hrough depart ment al st ores. As at 31 March, 2013, t he Company
operat ed t hrough 55 such depart ment al st ores locat ed in different cit ies of India. The Company has six subsidiaries w hich along w it h
t he Company const it ut e t he Group (Refer Not e 38).
2. SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation of financial statements
The consolidat ed financial st at ement s have been prepared in accordance w it h t he Generally Accept ed Account ing Principles
in India (Indian GAAP) t o comply w it h t he Account ing St andards not ified under t he Companies (Account ing St andards) Rules,
2006 (as amended) and t he relevant provisions of t he Companies Act , 1956. The financial st at ement s have been prepared on
accrual basis under t he hist orical cost convent ion. The account ing policies adopt ed in t he preparat ion of t he financial st at ement s
are consist ent w it h t hose follow ed in t he previous year.
b) Use of estimates
The preparat ion of t he financial st at ement s in conformit y w it h Indian GAAP requires t he Management t o make est imat es and
assumpt ions considered in t he report ed amount s of asset s and liabilit ies (including cont ingent liabilit ies) and t he report ed income
and expenses during t he year. The Management believes t hat t he est imat es used in preparat ion of t he financial st at ement s are
prudent and reasonable. Fut ure result s could differ due t o t hese est imat es and t he differences bet w een t he act ual result s and
t he est imat es are recognised in t he periods in w hich t he result s are know n/ mat erialise.
c) Fixed assets and depreciation
Tangible assets
Fixed asset s are st at ed at t heir original cost of acquisit ion less accumulat ed depreciat ion and impairment losses. Cost comprises
of all cost incurred t o bring t he asset s t o t heir locat ion and w orking condit ion and includes all expenses incurred up t o t he dat e
of launching new st ores t o t he ext ent t hey are at t ribut able t o t he new st ore.
Depreciat ion is provided, pro rat a for t he period of use, by t he st raight line met hod (SLM), based on management 's est imat e of
useful lives of t he fixed asset s, or at t he SLM rat es prescribed in Schedule XIV t o t he Act w hichever is higher, at t he follow ing
annual rat es:
(% )
Air condit ioning and ot her equipment 5.0033.00
Furnit ure, fixt ures and ot her fit t ings 6.3320.00
Comput ers 16.2133.33
Vehicles 9.5020.00
Leasehold Improvement s 5.8220.00
Intangible assets
Int angible asset s are st at ed at t heir cost of acquisit ion, less accumulat ed amort isat ion and impairment losses. An int angible
asset is recognised, w here it is probable t hat t he fut ure economic benefit s at t ribut able t o t he asset w ill flow t o t he ent erprise
and w here it s cost can be reliably measured. The depreciable amount of int angible asset s is allocat ed over t he best est imat e of
it s useful life on a st raight -line basis.
Trademarks, pat ent s and comput er soft w are are amort ised uniformly over a period of 10 and 6 years respect ively.
Copyright s and acquired Goodw ill are amort ised uniformly over a period of 10 years.
Impairment of assets
An asset is considered as impaired in accordance w it h Account ing St andard 28 on Impairment of Asset s w hen at t he balance
sheet dat e t here are indicat ions of impairment and t he carrying amount of t he asset , or w here applicable t he cash generat ing
unit t o w hich t he asset belongs, exceeds it s recoverable amount (i.e. t he higher of t he asset s net selling price and value in
use). The carrying amount is reduced t o t he recoverable amount and t he reduct ion is recognised as an impairment loss in t he
St at ement of Profit and Loss.
Notes to the Consolidated Financial Statements
d) Investments
Long-t erm invest ment s are st at ed at cost . Where applicable, provision is made t o recognise a decline, ot her t han t emporary, in
t he value of non-current Invest ment s.
e) Revenue recognition
Sale of products:
Revenue is recognised w hen it is earned and no significant uncert aint y exist s as t o it s realisat ion or collect ion.
Ret ail sales are recognised on delivery of t he merchandise t o t he cust omer, w hen t he propert y in goods and significant risks and
rew ards are t ransferred for a price and no effect ive ow nership cont rol is ret ained.
The propert y in t he merchandise of t hird-part y concession st ores locat ed w it hin t he main depart ment al st ore of t he Company
passes t o t he Company once a cust omer decides t o purchase an it em from t he concession st ore. The Company in t urn sells t he
it em t o t he cust omer and is accordingly included under Ret ail Sales.
The propert y in t he merchandise of t hird-part y consignment st ock does not pass t o t he Company. Since, how ever, t he sale
of such st ock forms a part of t he act ivit ies of t he Company's depart ment al st ores, t he gross sales values and cost of t he
merchandise are disclosed separat ely and form part of t ot al Ret ail Turnover in t he St at ement of Profit and Loss.
Sales are net of discount s. Value Added Tax and Sales Tax are reduced from Ret ail Revenue.
In respect of gift vouchers and point aw ard schemes operat ed by t he Company, sales are recognised w hen t he gift vouchers or
point s are redeemed and t he merchandise is sold t o t he cust omer.
Other retail operating revenue:
Revenue from st ore displays and sponsorships are recognised based on t he period for w hich t he product s or t he sponsors
advert isement s are promot ed/ displayed. Facilit y management fees are recognised pro-rat a over t he period of t he cont ract .
Franchise income is recognised in accordance w it h t he rat es specified in t he franchise agreement s and is based on t he sales
recorded by t he franchisees for t he year.
f) Income from investments and loans
Int erest income is recognised on t ime proport ion basis. Dividend income is recognised w hen right t o receive payment is
est ablished.
g) Inventories
Invent ories are valued at t he low er of cost and net realisable value. Cost of invent ories comprises of all cost s of purchase and
ot her cost s incurred in bringing t he invent ories t o t heir present condit ion and locat ion. Cost is det ermined by t he w eight ed
average cost met hod.
Merchandise received under consignment and concessionaire arrangement s belong t o t he consignors/ concessionaires and are
t herefore excluded from t he Companys invent ories.
Opt ion invent ories comprises of right t o acquire flat s in a st ruct ure t o be const ruct ed by t he ot her part y, w hich right is freely
market able/ t ransferable aft er a st ipulat ed period. The same is valued at low er of cost and net realisable value.
h) Employee benefits
Compensat ion t o employees for services rendered is measured and account ed for in accordance w it h Account ing St andard 15
on Employee Benefit s.
Employee Benefit s such as salaries, allow ances, non-monet ary benefit s and employee benefit s under defined cont ribut ion plans
such as provident and ot her funds, w hich fall due for payment w it hin a period of t w elve mont hs aft er rendering service, are
charged as expense t o t he St at ement of Profit and Loss in t he period in w hich t he service is rendered.
Employee Benefit s under defined benefit plans and ot her long-t erm employee benefit s such as grat uit y and compensat ed
absences w hich fall due for payment aft er complet ion of employment or aft er a period of t w elve mont hs from rendering service,
are measured by t he project ed unit credit met hod, on t he basis of act uarial valuat ions carried out by t hird part y act uaries at
each balance sheet dat e. The companys obligat ions recognised in t he balance sheet represent t he present value of obligat ions
as reduced by t he fair value of plan asset s, w here applicable.
Act uarial Gains and losses are recognised immediat ely in t he St at ement of Profit and Loss.
Significant Accounting Policies and Notes forming part of
Consolidated Financial Statements for the year ended 31 March 2013
i) Operating leases
Operat ing Lease payment s are recognised as an expense in t he St at ement of Profit and Loss on a st raight -line basis or ot her
bases more represent at ive of t he t ime pat t ern of t he user s benefit .
j) Borrowing costs
Borrow ing cost s at t ribut able t o t he acquisit ion or const ruct ion of qualifying asset s, as defined in Account ing St andard 16 on
Borrow ing Cost s, are capit alised as part of t he cost of acquisit ion. Ot her borrow ing cost s are expensed as incurred.
k) Foreign currency transactions
Transact ions in foreign currencies are account ed at t he prevailing rat es of exchange on t he dat e of t ransact ion.
Monet ary it ems denominat ed in foreign currencies, are rest at ed at t he prevailing rat es of exchange at t he Balance Sheet dat e.
All gains and losses arising out of fluct uat ions in exchange rat es are account ed for in t he St at ement of Profit and Loss.
Exchange differences on forw ard exchange cont ract s, ent ered int o for hedging foreign exchange fluct uat ion risk in respect of
an exist ing asset / liabilit y, are recognised in t he St at ement of Profit and Loss in t he report ing period in w hich t he exchange rat e
changes. Premium/ Discount on forw ard exchange cont ract s are t reat ed as an expense/ income over t he life of t he cont ract .
l) Income-Tax
Income t axes are account ed for in accordance w it h Account ing St andard 22 on Account ing for Taxes on Income. Taxes comprise
bot h current and deferred t ax.
Provision for current t ax is made t aking int o account admissible allow ances, disallow ances under t he provisions of Income-Tax
Act , 1961, using t he applicable t ax rat es.
Deferred t ax result ing from t he t iming differences bet w een t axable income and account ing income is account ed using applicable
t ax rat es and law s, enact ed or subst ant ively enact ed as at t he Balance Sheet .
The deferred t ax asset is recognised and carried forw ard only t o t he ext ent t hat t here is reasonable/ virt ual cert aint y t hat t he
asset w ill be realised in fut ure.
m) Stock based compensation
The compensat ion cost of st ock opt ions grant ed t o employees is calculat ed using t he int rinsic value of t he st ock opt ions. The
compensat ion expense is amort ised uniformly over t he vest ing period of t he opt ion.
n) Earnings per share
Basic and dilut ed Earnings Per Share (EPS) is report ed in accordance w it h Account ing St andard 20 on Earnings Per Share. Basic
EPS is comput ed by dividing t he net profit or loss for t he year by t he w eight ed average number of equit y shares out st anding
during t he year. Dilut ed EPS is comput ed by dividing t he net profit or loss for t he year by t he w eight ed average number of equit y
shares out st anding during t he year as adjust ed for t he effect s of all dilut ive pot ent ial equit y shares, except w here t he result s are
ant i-dilut ive.
o) Cash Flow statement
The Cash Flow St at ement is prepared by t he indirect met hod set out in Account ing St andard 3 on Cash Flow St at ement s and
present s t he cash flow s by operat ing, invest ing and financing act ivit ies of t he Company. Cash and cash equivalent s present ed
in t he Cash Flow St at ement consist of cash on hand and unencumbered bank balances.
p) Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposit s w it h banks. Cash equivalent s are short -t erm balances (w it h an original
mat urit y of t hree mont hs or less from t he dat e of acquisit ion), highly liquid invest ment s t hat are readily convert ible int o know n
amount s of cash and w hich are subject t o insignificant risk of changes in value.
q) Provision, Contingent liabilities and Contingent assets
Provisions involving subst ant ial degree of est imat ion in measurement are recognised w hen t here is a present obligat ion as a
result of past event s and it is probable t hat t here w ill be an out flow of resources. Cont ingent Liabilit ies are not recognised but
are disclosed in t he not es t o t he financial st at ement s. Disclosure is not made if t he possibilit y of an out flow of fut ure economic
benefit s is remot e. Cont ingent asset s are neit her recognised nor disclosed in t he financial st at ement s.
Significant Accounting Policies and Notes forming part of
Consolidated Financial Statements for the year ended 31 March 2013
Mar-1 3 Mar-12
3. SHARE CAPITAL
3.1 Authorised
200,000,000 equit y shares of ` 5/ - each 1 0,000.00 10,000.00
3.2 Issued, subscribed and fully paid up shares
82,979,517 (2012: 82,562,134) equit y shares of ` 5/ - each fully paid up 4,1 48.98 4,128.11
4,1 48.98 4,128.11
3.3 Reconciliat ion of shares out st anding at t he beginning and end of t he year:
31 March 201 3 31 March 2012
Part iculars: Numbers ` lacs Numbers ` lacs
Equit y shares
At t he beginning of t he year 82,562,1 34 4,1 28.1 1 82,166,836 4,108.34
Issued during t he year - ESOP (Not e 3.4) 41 7,383 20.87 395,298 19.77
At the end of the year 82,979,51 7 4,1 48.98 82,562,134 4,128.11
3.4 Shares reserved for issue under opt ions: Mar-1 3 Mar-12
Employee St ock Opt ion Plan (ESOP)
Opt ions exercised during t he year 41 7,383 395,298
Opt ion Out st anding as at 592,756 853,367
3.5 Det ails of shareholders holding more t han 5% shares as at :
31 March 201 3 31 March 2012
Name of the Shareholder Shares held
(Nos)
Shares held
(% )
Shares held
(Nos)
Shares held
(%)
Palm Shelt er Est at e Development Pvt . Lt d. 1 1 ,81 3,300 1 4.24% 11,813,300 14.31%
Raghukool Est at e Development Pvt . Lt d. 8,263,300 9.96% 8,263,300 10.01%
Capst an Trading Pvt . Lt d. 8,1 29,768 9.80% 8,129,768 9.85%
Casa Maria Propert ies Pvt . Lt d. 7,91 3,300 9.54% 7,913,300 9.58%
Anbee Const ruct ion Pvt . Lt d. 6,51 1 ,762 7.85% 6,511,762 7.89%
Cape Trading Pvt . Lt d. 6,261 ,040 7.55% 6,261,040 7.58%
3.6 Ot her disclosures:
The Company has one class of equit y shares having a par value of ` 5 per share. Each equit y shareholder is eligible for one vot e per
share held. Each equit y shareholder is ent it led t o dividends as and w hen t he Company declares and pays dividend aft er obt aining
shareholders approval. Dividends are paid in Indian Rupees.
During t he year ended 31st March 2013, t he amount of per share final dividend recognised as dist ribut ion t o equit y shareholders
w as ` 0.75 per share (2012: ` 0.75 per share).
Shoppers St op Lt d. Not es t o Consolidat ed Financial St at ement s for t he year ended 31 March 2013
Mar-1 3 Mar-12
4. RESERVES AND SURPLUS
Securities Premium Account
Balance at beginning of t he year 45,956.03 45,637.40
Add: Received on allot ment of shares 322.82 318.63
46,278.85 45,956.03
General Reserve
Balance at beginning of t he year 1 ,249.63 928.33
Transferred from Surplus in t he St at ement of Profit and Loss 1 95.84 321.30
1 ,445.47 1,249.63
Surplus in the Statement of Profit and Loss
Opening Balance 270.88 (589.58)
Add/ (Less): (Loss)/ Profit for t he year (1 ,1 29.22) 1,901.43
(858.34) 1,311.85
Appropriat ions:
Dividend proposed t o be dist ribut ed t o equit y shareholders- 622.35 619.22
` 0.75 per share (2012: ` 0.75 per share)
Tax on proposed dividend 1 05.77 100.45
Transferred t o General Reserve 1 95.84 321.30
Closing Balance (1 ,782.30) 270.88
Employees Stock Options outstanding
Balance at beginning of t he year 5.10
Less: t ransferred t o securit ies premium on opt ions exercised 5.10
Closing balance
45,942.02* 47,476.54*
* Includes Share in Joint Vent ures Loss ` 3,259.80 lacs (2012 : ` 3,285.18 lacs)
5. LONG-TERM BORROWINGS
From banks
Term Loans (Secured) 1 9,374.98 14,674.99
Less: Current mat urit ies (Not e 10) 2,750.00 5,300.00
1 6,624.98 9,374.99
Share in Joint Vent ures Term Loan (Not e 38) 67.00 199.74
Less: Current mat urit ies (Not e 10) 67.00 133.16
66.58
1 6,624.98 9,441.57
5.1 2013: Term loans are secured by a first Pari Passu charge on st ocks, book debt s including credit card/ debit card receivables (Escrow
account ) and all t he movable fixed asset s of t he Company, bot h Present & Fut ure. Some of t he t erm loans are furt her secured by
second Pari Passu charge on t he current asset s of t he Company and corporat e guarant ees, joint and several, given by t he company
and promot er group/ joint vent ure part ners except ICICI Bank Term loans w hich is secured by first Pari Passu charge on t he current
asset s and all t he movable fixed asset s of t he company bot h Present & Fut ure excluding leasehold right s, lease deposit s & Shoppers
St op Brands.
Mar-1 3 Mar-12
6. DEFERRED TAX LIABILITIES (NET)
Major component s are as follow s:
Deferred tax liabilities 1 ,1 70.99 724.89
On fiscal allow ances on fixed asset s
1 ,1 70.99 724.89

Deferred tax assets
On provision for doubt ful debt s/ advances 1 38.04 108.67
On fiscal allow ances on expendit ure 297.36 592.74
Unabsorbed depreciat ion
1 09.23
544.63 701.41
Deferred t ax liabilit y (Net ) 626.36 23.48
7. OTHER LONG-TERM LIABILITIES
Share in Joint Vent ure (Not e 38) 1 .55 80.82
1 .55 80.82
2012: Term loans are secured by a first Pari Passu charge on st ocks, book debt s including credit card/ debit card receivables (Escrow
account ) and all t he movable fixed asset s of t he Company, bot h Present & Fut ure. Some of t he t erm loans are furt her secured by
second Pari Passu charge on t he current asset s of t he Company and corporat e guarant ees, joint and several, given by t he Company
and promot er group/ joint vent ure part ners.
5.2 Terms of t he Facilit ies:
Name of the Bank Rate of Interest Repayment Schedule Loan Balance
31 March 201 3 31 March 201 2
HDFC Bank Lt d. 11.60%
(Previous Year: 11.80%)
Repayable on 10t h April 2013.
For 2012, Loan is repayable in 5
mont hly Equal Inst allment s from
10t h Dec. 2012
1,000.00 5,000.00
Bank of India 11.25%
Repayable on 8t h June 2014 2,500.00 2,500.00
ICICI Bank Lt d. 11.75% Repayable in 15 Equal Quart erly
Inst allment s from 1st Sept . 2014
5,000.00
IDBI Bank Lt d. 12.00% Repayable in 4 Equal Quart erly
Inst allment s from 1st Feb. 2014
5,000.00
IDBI Bank Lt d. Nil
For 2012, Loan is repayable in
4 Quart erly Inst allment s from
13t h May 2012
800.00
Kot ak Mahindra Bank Lt d. 12.25%
Loan is repayable in 21 equal
inst allment s from 30t h April 2013.
For 2012, Loan is repayable in 33
Equal Mont hly Inst allment s from
30t h April 2012
875.00 1,375.00
Yes Bank Lt d. 12.05%
Repayable in 12 Equal Quart erly
Inst allment s from 25t h June 2014
5,000.00 5,000.00
Mar-1 3 Mar-12
8. SHORT-TERM BORROWINGS
Loans from banks (secured) 26,567.66 24,152.53
Loans from bank (unsecured) 932.33 -
Bill discount ing 651 .52 401.16
Buyer Credit 27.1 8 -
Commercial papers (unsecured) 2,000.00 4,000.00
(maximum amount out st anding during t he year ` 11,500 lacs; 2012: ` 8,500 lacs)
Share in Joint Vent ures (Not e 38) 264.30 275.00
30,442.99 28,828.69
8.1 2013: Loan repayable on demand viz. Cash credit , Working capit al loans and Ot her loans viz. short -t erm loans and Buyers credit
are secured by a first Pari Passu charge hypot hecat ion charge on credit card/ debit card receivables (Escrow account ), current
asset s and all movable fixed asset s of t he Company bot h present and fut ure and an exclusive lien on lease deposit s except ICICI
Bank Term loans w hich is secured by first Pari Passu charge on t he current asset s and all t he movable fixed asset s of t he Company
bot h present and fut ure excluding leasehold right s, lease deposit s and Shoppers St op brands. Some of t he loans are furt her
secured by corporat e guarant ees, joint and several, given by t he Company and promot er group/ joint vent ure part ners.
8.2 2012: Loan repayable on demand viz. Cash credit , Working capit al loans and Ot her loans viz. short -t erm loans and Buyers credit
are secured by a first Pari Passu charge hypot hecat ion charge on credit card/ debit card receivables (Escrow account ), current
asset s and all movable fixed asset s of t he Company bot h present and fut ure and an exclusive lien on lease deposit s. Some of t he
loans are furt her secured by corporat e guarant ees, joint and several, given by t he Company and promot er group/ joint
vent ure part ners.
9. TRADE PAYABLES
Micro, Small and Medium ent erprises 1 1 .1 6 23.44
Ot her t han Micro, Small and Medium ent erprises 37,068.98 30,827.26
Share in Joint Vent ures (Not e 38) 1 ,062.88 1,129.93
38,1 43.02 31,980.63
9.1 There are no Micro, Small and Medium Ent erprises, t o w hom t he Company ow es dues w hich are out st anding for more t han 45 days
during t he year. This informat ion as required t o be disclosed under t he Micro, Small and Medium Ent erprise Development Act , 2006
has been det ermined t o t he ext ent such part ies have been ident ified on t he basis of informat ion available w it h t he Company.
Mar-1 3 Mar-12
1 0. OTHER CURRENT LIABILITIES
Current mat urit ies of long-t erm borrow ings: Secured (Not e 5) 2,750.00 5,300.00
Int erest accrued and not due on borrow ings 59.50 108.59
Income received in advance 1 8.25 32.79
Unpaid dividend 0.46 0.46
Ot her liabilit ies:
a) Credit ors for capit al expendit ure 603.76 809.01
b) St at ut ory dues payable 2,008.38 1,261.02
c) Accrued payroll 2,085.45 1,717.35
d) Securit y deposit s 420.1 9 352.90
e) Ot hers (mainly for gift vouchers/ point s aw ard redempt ions, et c.) 7,736.00 7,285.94
f) Grat uit y Payable 1 54.31 96.39
(includes current mat urit ies of t erm loans 2013:
` 67 lacs, 2012: ` 133.16 lacs)
1 6,1 94.1 8 17,285.55
1 1 . SHORT-TERM PROVISIONS
For employee benefit s:
For Leave encashment 392.1 1 269.98
For Proposed equit y dividend 622.34 619.21
For Tax on Proposed equit y dividend 1 05.77 100.45
728.1 1 719.66
1 ,1 25.92 998.42
1
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Mar-1 3 Mar-12
1 3. NON-CURRENT INVESTMENTS
(Trade, unqouted, at cost, unless otherwise stated)
Investments in equity instruments
St argaze Propert ies Privat e Limit ed 0.1 0 0.10
1,000 equit y shares of ` 10/ - each fully paid
Ret ailers Associat ion of India 1 .00 1.00
10,000 equit y shares of ` 10/ - each fully paid
Aest het ic Realt ors Privat e Limit ed
66 equit y shares of ` 10/ - each fully Paid 0.01 0.01
Ret ailers Associat ions Skill Council of India 0.50 0.50
500 equit y shares of ` 100/ - each fully paid
1 .61 1.61
1 4. DEFERRED TAX ASSETS (NET)
Major component s are as follow s:
Deferred t ax liabilit y
On fiscal allow ances on fixed asset s 158.39
158.39
Deferred Tax Asset s
Unabsorbed depreciat ion 126.02
Expendit ure allow able on payment basis 34.90
160.92
Deferred t ax asset (Net ) 2.53
Mar-1 3 Mar-12
1 5. LONG-TERM LOANS AND ADVANCES
(Unsecured, considered good unless ot herw ise st at ed)
Capit al advances 1 ,51 2.38 993.49
Premises and ot her deposit s 1 8,098.53 16,815.87
Deposit t ow ards service t ax (Not e 30) 2,1 79.70 2,179.70
Advance income t ax (net of provision) 1 ,084.69 377.27
Loans and advances t o relat ed part ies (Not e 35)
23,956.92 21,554.24
1 6. OTHER NON-CURRENT ASSETS
(Unsecured, considered good unless ot herw ise st at ed)
St at ut ory recoverables
Considered good 1 29.99 336.97
Considered doubt ful 1 00.27 100.27
230.26 437.24
Less : Provision for doubt ful advances 1 00.27 100.27
1 29.98 336.97
Insurance Claim receivables 790.45 37.87
Ot her receivables 1 .1 2
Minimum alt ernat e t ax credit ent it lement 163.04
Share in Joint Vent ures (Not e 38) 0.52
922.08 537.88
1 7. INVENTORIES
(At low er of cost and net realisable value)
St ock-in-t rade: Ret ail merchandise 35,1 91 .28 31,380.22
(including St ock in t ransit ` 228.99 lacs, 2012: ` 141.72 lacs)
Propert y opt ion invent ories 1 ,076.00 1,076.00
Share in Joint Vent ures (Not e 38) 71 4.67 657.19
36,981 .95 33,113.41
Mar-1 3 Mar-12
1 8. TRADE RECEIVABLES
(unsecured)
Debt s out st anding for a period exceeding 6 mont hs
from t he dat e t hey are due for payment
Considered doubt ful 82.03 58.03
Ot her Debt s, considered good 3,1 05.72 2,491.40
3,21 7.46 2,594.34
Less: Provision for doubt ful debt s 82.03 58.03
3,1 35.43 2,536.31
Share in Joint Vent ures (Not e 38) 81 .69 94.41
3,21 7.1 2 2,630.72
1 9. CASH AND CASH EQUIVALENTS
Balance w it h banks in
Current account s 706.44 405.11
Deposit account s 1 2.72 5.73
Ot her bank balances:
Margin Money account (under lien against bank guarant ee) 379.83 340.40
Dividend account s 0.46 0.46
Cash on hand 886.75 401.16
1 ,986.20 1,152.86
2,678.1 3 1,501.70
Of t he above, cash and cash equivalent s comprise:
Balance w it h banks in
Current account s 706.44 405.11
Deposit account s 1 2.72 5.73
Cash on hand 886.75 401.16
2,266.31 1,019.43
Mar-1 3 Mar-12
20. SHORT-TERM LOANS AND ADVANCES
(unsecured, considered good unless ot herw ise st at ed)
Advances for goods and rendering of services t o be received:
Considered good 5,048.96 3,902.10
Considered doubt ful 459.40 461.64
5,508.36 4,363.74
Less: Provision for doubt ful advances 459.40 461.64
5,048.96 3,902.10
Advances t o employees 21 2.58 104.44
Premises and ot her deposit s 30.33
Advance t o suppliers 346.27 208.26
Less: Provision for doubt ful advances 26.1 2
320.1 5 208.26
Prepaid expenses & ot her receivables 1 ,749.84 1,525.27
7,572.75 5,866.31
21 . OTHER CURRENT ASSETS
St at ut ory recoverable 1 ,01 3.47 720.37
1 ,1 06.94 743.15
22. REVENUE FROM OPERATIONS
Retail Sale of Products
Ow n merchandise (including concession sales) Gross of t ax 321 ,243.25 282,337.91
347,355.09 304,627.25
Less: Value added t ax 1 8,346.62 16,483.66
31 0,701 .88 272,371.84
Revenue from Gaming Business (Share in Joint Vent ure) 1 ,369.45 1,307.27
31 2,071 .33 273,679.11
Other Retail operating revenue
Facilit y management fees 1 ,284.1 8 856.83
Income from st ore displays and sponsorship Income 3,074.69 2,653.60
Direct market ing Income 91 1 .71 1,028.39
Income from franchisees 1 92.37 310.72
5,462.95 4,849.54
Share in Joint Vent ures (Not e 38) 1 84.80 178.34
5,647.75 5,027.88
31 7,71 9.08 278,706.99
22.1 The gross ret ail volume of business and operat ions comprise:-
Ow n merchandise 321 ,243.25 282,337.91
Ot her Ret ail operat ing revenue 5,647.75 5,027.88
353,002.84 309,655.13
Mar-1 3 Mar-12
23. OTHER INCOME
Int erest Income from ot hers 77.67 77.20
Gain on account of st ake dilut ion in joint vent ure 216.49
Miscellaneous income and credit s 89.67 77.99
Provision for doubt ful debt s/ advances w rit t en back 1 5.07 25.29
Profit on sale of fixed asset s (net ) 4.21
Compensat ion for loss of business 432.00 306.54
61 4.40 707.72
689.20 756.96
24. PURCHASE OF TRADED GOODS
Purchase of t rading goods ret ail merchandise 209,931 .38 191,145.43
Share in Joint Vent ures (Not e 38) 1 ,81 6.56 1,483.73
21 1 ,747.94 192,629.16
24.1 Details of purchase of traded goods
Apparels 81 ,51 9.01 69,460.54
Non-apparels 62,41 7.80 57,633.28
Food, Household it ems et c. 61 ,224.07 59,337.84
Ot hers (mainly books, CDs et c.) 6,587.06 6,197.50
21 1 ,747.94 192,629.16
25. CHANGES IN INVENTORIES OF STOCK-IN-TRADE
Opening invent ory 32,456.22 24,389.47
Closing invent ory 36,267.28 32,456.22
Share in Joint Vent ures (Not e 38) (51 .37) 1.71
(Increase)/ Decrease (3,862.42) (8,065.04)

26. EMPLOYEE BENEFITS EXPENSE
Salaries, allow ance and bonus 20,946.92 17,717.48
Cont ribut ion t o Provident and ot her funds 1 ,408.27 1,032.83
St aff w elfare expenses 769.51 745.87
23,1 24.70 19,496.18
23,593.27 19,908.74
Mar-1 3 Mar-12
27. FINANCE COSTS
Int erest on bank borrow ings 4,379.77 3,186.00
Int erest on ot hers 697.38 695.43
Ot her borrow ing cost s 32.29 9.10
Bank charges 294.33 252.45
5,403.77 4,142.98
5,465.77 4,216.47
28. OTHER EXPENSES
Insurance 1 50.53 125.27
Lease rent and hire Charges (Not e 29) 27,535.09 23,536.51
Business conduct ing fees 1 ,268.49 1,027.70
Rat es and t axes 42.69 33.97
Repairs and maint enance
Buildings 6,774.36 5,470.02
Ot hers 1 ,754.07 1,464.38
Legal and professional fees 1 ,042.47 924.70
Housekeeping charges 1 ,633.56 1,345.97
Securit y charges 1 ,925.1 3 1,787.94
Comput er expenses 1 ,236.20 901.84
Conveyance and t ravelling expenses 1 ,748.1 0 1,632.47
Elect ricit y charges 8,836.46 6,977.40
Advert isement and publicit y 5,420.51 4,400.11
Sales promot ion 2,684.35 1,872.56
Charges on credit card t ransact ions 2,288.31 2,073.39
Packing mat erials 946.1 0 1,098.18
Loss on Sale of Fixed Asset s (net ) 1 07.51 67.10
Provision for Doubt ful debt s/ advances 62.95 15.55
Foreign exchange loss (net ) 1 54.90 32.56
Balances w rit t en off 70.26
Service t ax input credit expensed 5,61 0.93 3,519.78
Miscellaneous expenses 2,706.82 3,319.93
73,999.79 61,627.33
Share in Joint Vent ures (Not e 38) 2,627.22 2,282.15
76,627.01 63,909.48
Mar-1 3 Mar-12
29. Leasing Transactions
a) Operat ing lease rent als charged t o revenue: 1 5,81 1 .31 14,897.62
b) Variable rent als charged t o revenue: 1 3,398.77 9,693.85
Variable rent for cert ain st ores is payable in accordance w it h t he lease agreement as
t he higher of (a) fixed minimum guarant ee amount and (b) revenue share percent age.
c) The fut ure minimum rent al payment s in respect of non-cancellable lease for
premises are as follow s:
Not lat er t han one year 1 2,734.42 13,512.88
Lat er t han one year and not lat er t han five years 1 9,835.1 3 26,441.24
Lat er t han five years 2,598.26 2,934.31
The agreement s are execut ed for periods ranging from 33 t o 288 mont hs w it h a
non-cancellable period at t he beginning of t he agreement ranging from 33 t o 108
mont hs and having a renew able clause.
30. Service Tax
The Company has based on a legal advice, challenged t he said levy and int er-alia, it s ret rospect ive applicat ion. The Honble Supreme
Court has passed an int erim order dat ed 14t h Oct ober, 2011, w it h regard t o t he levy of service t ax on immovable propert ies rented
out for commercial use including it s ret rospect ive applicabilit y from 1st June, 2007 in compliance of w hich, t he Company has made
an aggregat e deposit of ` 2,145.94 lacs in respect of t he liabilit y for such service t ax upt o 30t h Sept ember, 2011. From Oct ober
2011, t he Company has been account ing and paying for such service t ax regularly as per direct ives of t he Supreme Court .
Pending t he final disposal of t he mat t er, t he Company cont inues not t o provide for t he ret rospect ive levy aggregat ing ` 2,010.90 lacs
for t he period 1st June, 2007 t o 31st March, 2010.
31 . Tax expense comprises of:
Current t ax
For t he year 2,006.54 3,201.27
For t he earlier year (499.71 ) (35.22)
Deferred t ax
For t he year 246.40 213.95
For t he earlier year 359.01
MAT Credit Reversal/ (Ent it lement ) 1 63.04 (163.04)
2,275.28 3,216.96
32. EARNING PER EQUITY SHARE
Calculated as follows:
Particulars
a) (Loss)/ Profit at t ribut able t o equit y share holders (` In lacs) (1 ,1 29.22) 1,901.43
b) Weight ed Number of equit y shares out st anding during t he year 82,787,593 82,425,678
c) Weight ed Number of equit y shares out st anding during t he year aft er
adjust ment for dilut ion
83,1 59,250 82,882,344
d) Nominal value per share (`) 5.00 5.00
e) EPS:
Basic (`) (1 .36) 2.31
Dilut ed (`) (1 .36) 2.29
Mar-1 3 Mar-12
33. Contingent liabilities and commitments:
a) Claims against t he Company not acknow ledged as debt s comprise of:
Income t ax claims disput ed by t he Company relat ing t o disallow ances aggregat ing 702.1 0 1,068.85
Service t ax, Sales t ax and ot her Indirect t ax claims disput ed by t he Company
relat ing t o issues of applicabilit y and classificat ion aggregat ing
1 ,496.75 1,687.03
Third part y claims arising from disput es relat ing t o cont ract s aggregat ing 699.06 644.96
b) Ot hers 52.25 52.25
c) Est imat ed amount of cont ract s remaining t o be execut ed on capit al account and
not provided for
4,920.20 2,671.39
d) Corporat e guarant ee given joint ly and severally w it h joint vent ure part ners t o banks
for loans t aken by Joint vent ure ent it ies
1 ,338.57 1,338.57
e) Corporat e guarant ee given joint ly and severally w it h t he promot er group company
for loans t aken by Hypercit y Ret ail (India) Lt d.
9,500.00 5,000.00
f) Unpaid preference dividend 4,442.90 3,058.12
g) Bank Guarant ees 382.62 327.74
h) Share of Joint Vent ures (see Not e 38) 1 82.1 8 657.32
Note: Fut ure cash out flow s in respect of (a) above are det erminable only on receipt of
judgement s/ decisions pending w it h various forums/ aut horit ies.
34. EMPLOYEE BENEFITS 31 March 201 3 31 March 2012
Post-employment benefits
Defined cont ribut ion plans
Companys cont ribut ion t o Provident Fund 91 5.81 717.90
Defined benefit scheme-Gratuity (Funded)
I. Component of Employer Expense
Current Service Cost 1 08.24 106.48
Expect ed Ret urn on Plan asset s (44.52) (32.53)
Act uarial (Gains)/ Losses 1 01 .32 (6.56)
21 5.66 109.77
II. Change in Defined Benefit Obligations (DBO)
Present Value of DBO at t he Beginning of Period 598.91 535.21
Current Service Cost 1 08.24 106.48
Act uarial Losses 1 25.98 1.43
Present Value of DBO at t he End of Period 802.1 6 598.91
III. Change in Fair Value of Assets
Plan Asset s at t he Beginning of Period 502.52 426.89
Expect ed Ret urn on Plan Asset s 44.52 32.53
Act uarial Losses 24.04 7.99
Act ual Company Cont ribut ion 1 58.36 121.70
Plan Asset s at t he End of Period 647.85 502.52
IV. Net Asset/(Liability) Recognised in Balance Sheet
Present Value of Defined Benefit Obligat ion 802.1 6 598.91
Fair Value of Plan Asset s 647.85 502.52
St at us [ Surplus/ (Deficit )] (1 54.31 ) (96.39)
Unrecognised Past Service Cost
Net Asset / (Liabilit y) Recognised in Balance Sheet (1 54.31 ) (96.39)
V. Actuarial assumptions
Discount Rat e 7.75% - 8.00% p.a. 8.00% - 8.50% p.a.
Expect ed Ret urn on Plan Asset s 8.00% - 8.70% p.a. 8.00% - 8.60% p.a.
Rat e of increase in salaries 4.00-5.00% p.a. 4.00-5.00% p.a.
Rat e of At t rit ion 8.50-25.00% 8.50-25.00%
VI. Net Asset/(Liability) recognised in Balance Sheet (including experience adjustment impact)
31 March 2013 31 March 2012 31 March 2011 31 March 2010 31 March 2009
Present Value of t he Defined Benefit Obligat ion 802.16 598.91
535.21
268.81 285.21
Fair Value of t he Plan Asset s 647.85 502.52 426.89 263.81 281.45
Surplus/ (Deficit ) in t he Plan (154.31) (96.39) (108.32) (5.00) (3.76)
Liabilit ies Losses/ (Gains)
(44.01) (63.86) 120.21 (49.45) (0.44)
Asset s Gains/ (Losses)
6.23 8.35 3.09 (16.45) (15.83)
The group expect s t o cont ribut e ` 324.42 lacs t o it s Grat uit y plan for t he next year.
In assessing t he group Post Ret irement Liabilit ies, t he group monit ors mort alit y assumpt ions and uses up-t o-dat e mort alit y t ables. The
base being t he LIC 1994-96 ult imat e t ables.
Expect ed ret urn on plan asset s is based on expect at ion of t he average long-t erm rat e of ret urn expect ed on invest ment s of t he fund
during t he est imat ed t erm of t he obligat ions.
The est imat es of fut ure salary increases considered in act uarial valuat ion t ake account of inflat ion, seniorit y, promot ion and ot her
relevant fact ors, such as supply and demand in t he employment market .
The grat uit y benefit scheme of t he group is managed by Life Insurance Corporat ion of India (LIC). The group is current ly aw ait ing t he
det ails of t he composit ion of t he plan asset s, by cat egory, from t he LIC for t he current and t he previous years and hence t he disclosures
as required by Account ing St andard (AS) 15 on Employee Benefit s have not been given.
35. RELATED PARTY DISCLOSURES
Follow ing are t he mat erial t ransact ions w it h relat ed part ies: (All amounts in lacs, unless otherwise stated)
Nature Companies
under common
control/
significant
influence (refer
(b) below)
J oint
Ventures
Key
Management
Personnel
Total
Purchase of Assets 1 2.1 7 34.44 46.61
LAI Games Sales Inc. 4.44
LAI Games Int ernat ional Pt e. Lt d. 21.49
Timezone Funt asia 4.07
Embed Int ernat ional Pt y. 4.44
Magna Warehousing & Dist ribut ion Pvt . Lt d. 12.17 -
(90.87) (90.87)
Sale of Assets 47.93 47.93

Purchase of Goods 1 3.38 1 3.38
Leisure & allied Indust ries Philiipines Inc. 5.57
LAI Games Int ernat ional Pt e. Lt d. 1.65
P T Mat ahari Graha Fant asi 0.04
Embed Int ernat ional Pt y. 0.05
The Nuance Group AG 6.07
(5.68) (5.68)
Sale of Merchandise
The Nuance Group AG
(61.09)
Payment of conducting fees/Lease Rent/Common 7,358.47 7,358.47
Area Maintenance Charges
Inorbit Malls (India) Privat e Limit ed 2,622.19
Avacado Propert ies and Trading India Privat e Limit ed 217.31
Trion Propert ies Privat e Limit ed 2,210.27
(7,251.85) (7,251.85)
Expenses Paid 41 0.93 41 0.93
The Resort 6.73
(418.26) (418.26)
Deposits Paid 240.82 240.82
(35.48) (35.48)
Deposit received Back 6.42 6.42

Nature Companies
under common
control/
significant
influence (refer
(b) below)
J oint
Ventures
Key
Management
Personnel
Total
Reimbursement of Expenses 1 64.30 1 64.30

Receiving of services 7.98 7.98

Expenses Paid 22.09 22.09
Ret ailers Associat ion of India 11.83
Sanghavi Associat es Lt d. 10.26

Expenses Recovered 1 02.34 1 02.34
Magna Warehousing and Dist ribut ion Privat e Limit ed 33.40
Nuance Group (India) Privat e Limit ed
(68.94) (68.94)
Other Expenses 26.63 26.63
Avel Pt y. Lt d. (Royalt y) 26.63
(26.78)

Issue of Equity/Preference Shares 4,361 .00 81 .32 4,442.32
Aberdee Pt y. Lt d. 81.32
K. Raheja Corp. Pvt . Lt d. 4,361.00
(4,514.73) (338.29) (4,853.02)
Share application money
Aberdee Pt y. Lt d.
(80.82) (80.82)
Remuneration to Managing Director: 338.91 338.91
Govind Shrikhande 338.91
(310.70) (310.70)
Commission and Sitting fees to Non Executive Directors 27.00 27.00
Chandru L. Raheja 0.80
Ravi C. Raheja 0.80
Neel C. Raheja 0.60
B. S. Nagesh 3.60
Gulu L. Mirchandani 3.80
Shahzaad S. Dalal 3.60
Nit in Sanghavi 3.60
Deepak Ghaisas 6.80
Nirvik Singh 3.40
(27.00) (27.00)
Balance outstanding at the year end
Receivables
(311.66)
(1,092.59)
(922.65)
(735.97)
LAI Games Int ernat ional Pt e. Lt d.
(2.97)
Magna Warehousing and Dist ribut ion Privat e Limit ed 33.40

(61.09)
Payables
Avel Pt y. Lt d. 85.93
(72.69)
LAI India Pvt . Lt d . 21.93
(22.33)
P T Mat ahari Graha Fant asi 0.30
(0.26)
P T Mat ahari Leisure (0.46)
(20.66)
LAI Singapore Pt e. Lt d.
(9.88)
Leisure & allied Indust ries Philiipines Inc.
(2.75)
(484.13)
Corporate Guarantee
The figure in bracket pertain to previous year
Names of related parties and description of relationship:
(a) Promot er direct ors having cont rol/ significant
influence over companies st at ed in (b) below
C.L. Raheja, Ravi C. Raheja, Neel C. Raheja
(b) Companies in w hich t he persons st at ed in (a) above
have cont rol/ significant influence
Ivory Propert ies and Hot els Privat e Limit ed, K. Raheja Corp. Privat e
Limit ed, K. Raheja Privat e Limit ed, Inorbit Malls (India) Privat e Limit ed,
Hypercit y Ret ail (India) Limit ed, Avacado Propert ies and Trading India
Privat e Limit ed, K. Raheja IT Park (Hyderabad) Privat e Limit ed,
Trion Propert ies Privat e Limit ed, Magna Warehousing and Dist ribut ion
Privat e Limit ed, Sanghavi Associat es Lt d., Ret ailers Associat ion of India
(c) Joint Vent ures Nuance Group (India) Privat e Limit ed
Timezone Ent ert ainment Privat e Limit ed
(d) Key Management Personnel Execut ive Direct or: Govind Shrikhande
Non-Execut ive Direct ors: Chandru L. Raheja
Ravi Raheja
Neel Raheja
B. S. Nagesh
Gulu L. Mirchandani
Shahzaad Dalal
Nitin Sanghavi
Deepak Ghaisas
Nirvik Singh
36. SEGMENT REPORTING
I) Informat ion about primary segment s (Business segment s):
Retail
Operations
Others Total Retail
Operations
Others Total
SEGMENT REVENUE
Ext ernal Sales 31 6,349.63 1 ,369.45 31 7,71 9.08 277,399.72 1,307.27 278,706.99
Total Revenue 31 6,349.63 1 ,369.45 31 7,71 9.08 277,399.72 1,307.27 278,706.99
Segment Results 2,271 .46 (43.68) 2,227.79 4,999.60 (94.85) 4,904.70
Int erest Income 85.20 86.81
Int erest Expenses (5,465.77) (4,216.47)
Provision for Taxat ion (2,275.28) (3,216.96)
Profit before minority interest (5,428.07) (2,441.87)
OTHER INFORMATION
Segment Asset s 1 52,576.60 1 ,1 30.54 1 53,707.1 3 139,541.91 1,096.88 140,638.79
Total Assets 1 53,707.1 3 140,638.79
Segment Liabilit ies 1 02,752.23 406.77 1 03,1 59.00 88,070.68 568.48 88,639.16
Total Liabilities 1 03,1 59.00 88,639.16
Segment Depreciat ion 7,71 5.82 1 91 .58 7,907.39 5,868.75 224.67 6,093.42
Total Depreciation 7,907.39 6,093.42
Segment Capit al Expendit ure 1 2,058.1 2 1 99.28 1 2,257.40 16,889.97 594.84 17,484.81
Total Capital Expenditure 1 2,257.40 17,484.81
II) The Company has business segment as t he primary segment for disclosure on t he basis of nat ure of product s, different risks and
ret urns et c. and mainly operat es in ret ail operat ions i.e. t rading of Apparels, Non-apparels such as Cosmet ics, Household it ems,
Food product s, Books & CDs et c. 'Ot hers' comprise of Gaming business and Propert y opt ions. Segment revenue includes ot her ret ail
operat ing revenue.
III) The company operat es in a single geographical environment i.e. in India.
Not es t o Consolidat ed Financial St at ement s
38. The Consolidat ed Financial St at ement s have been prepared in accordance w it h Account ing St andard 21 (AS 21) Consolidat ed
Financial St at ement s and Account ing St andard 27 (AS 27) Financial Report ing of Int erest s in Joint Vent ures as not ified by
Companies (Account ing St andards) Rules, 2006.
(a) The subsidiaries (w hich alongw it h Shoppers St op Limit ed, t he parent , const it ut e t he Group) considered in t he preparat ion of
t hese Consolidat ed Financial St at ement s are:
Name Country of
Incorporation
Percentage of ownership
interest either directly or through subsidiary
31 March 201 3 31 March 201 2
Hypercit y Ret ail (India) Limit ed India 51 51
Crossw ord Book St ores Limit ed India 100 100
Upasna Trading Limit ed India 100 100
Shoppers St op Services (India) Limit ed India 100 100
Shoppers St op.Com (India) Limit ed India 100 100
Gat ew ay Mult ichannel Ret ail (India) Limit ed India 100 100
37. DISCONTINUING OPERATIONS:
The Board of Direct ors of Gat ew ay Mult ichannel Ret ail (India) Limit ed (Gat ew ay), a subsidiary of SSL had decided t o discont inue
operat ion in January 2009. SSL has commit t ed t o provide t he necessary level of support , t o enable Gat ew ay t o remain in exist ence
and cont inue as a going concern.
The t ot al asset s and liabilit ies of Gat ew ay as at March 31, 2013 aggregat ed ` 17.45 lacs (Previous year ` 12.95 lacs) and ` 4,507.89
lacs (Previous year ` 4,495.34 lacs) respect ively.
The net cash flow s at t ribut able t o operat ing, invest ing and financing act ivit ies of Gat ew ay during t he year, aggregat ed ` 4.49 lacs
(Previous year (5.89) lacs), ` Nil (Previous Nil) and ` 0.86 lacs (Previous year ` 0.28 lacs) respect ively.
Statement showing the revenue and expenses of continuing and discontinuing operations: (All amounts in lacs)
Particulars
31 March 201 3 31 March 2012
Continuing
operations
Discontinuing
operations
(Gateway)
Total Cont inuing
operat ions
Discont inuing
operat ions
(Gat ew ay)
Tot al
REVENUE
Sales/ Income 317,719.08 317,719.08 278,706.99 278,706.99
Ot her Income 689.20 0.01 689.21 756.96 4.34 761.30
Total Revenue 31 8,408.29 0.01 31 8,408.29 279,463.95 4.34 279,468.29
Operat ing Expenses 316,087.25 8.06 316,095.31 274,475.76 0.69 274,476.45
Int erest Expense 5,465.77 0.00 5,465.77 4,216.47 0.28 4,216.75
Profit/(Loss) before tax (3,1 44.76) (8.05) (3,1 25.80) 771 .72 3.37 775.09
Income t ax 2,275.28 2,275.28 3,216.96 3,216.96
Profit/(Loss) after tax
before minority interest
(5,420.03) (8.05) (5,428.07) (2,445.24) 3.37 (2,441 .87)
(b) Int erest s in Joint Vent ures:
The Groups int erest s in joint ly cont rolled ent it ies (incorporat ed Joint Vent ures) are:
Name Country of
Incorporation
Percentage of ownership
interest either directly or through subsidiary
31 March 201 3 31 March 201 2
Nuance Group (India) Privat e Limit ed India 50 50
Timezone Ent ert ainment Privat e Limit ed India 33.87 33.66
The financial st at ement s of t he joint vent ures, considered in t he consolidat ed account s, are draw n upt o 31st March ot her t han
for Nuance Group (India) Privat e Limit ed w here it is upt o 31st December.
The Groups int erest in t hese joint vent ures is account ed for using proport ionat e consolidat ion.
(c) These Consolidat ed Financial St at ement s are based, in so far as t hey relat e t o amount s included in respect of subsidiaries and
joint vent ures, on t he audit ed financial st at ement s prepared for consolidat ion in accordance w it h t he requirement s of AS 21 and
AS 27 by each of t he included ent it ies.
(d) The det ails of t he subsidiary companies are given in t he Annexure.
39. The Companys asset s (including invent ory) w ere dest royed/ damaged in a fire, on 21 June 2012, at it s st ore in Koregaon Park, Pune.
The Company has filed claim w it h t he insurance company and, t he survey by t he insurance company is under process. The Company
is adequat ely insured (including for mat erials damage and for loss of profit s) and has set up a receivable of ` 790.45 lacs (net of on
account receipt of ` 500 lacs) from t he insurance company in respect of t he value of t he asset dest royed/ damaged based on t he
companys current best est imat es and reasonable cert aint y considering t he report s of t he relevant aut horit ies and t he Company's
past experience. The net loss of ` 74.06 lacs on t his account , primary on policy exclusions, has been disclosed as an except ional
it em. The operat ions of t he st ore remain suspended.
40. Previous year's figures have been regrouped/ reclassified w herever necessary t o correspond w it h t he current year's classificat ion/
disclosure.
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Shoppers St op Lt d. Not es
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