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Shoppers Stop Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1. The Company is primarily engaged in the business of retail trade through retail and departmental store facilities, which in the terms of Ind AS 108 on 'Operating Segments', constitutes a single reporting segment.



2. Pursuant to levy of service tax on renting of immovable properties given for commercial use, retrospectively with effect from 1 June 2007, the Company has based on a legal advice, challenged the said levy and, inter-alia, its retrospective application. Pending the final disposal of the matter, which is presently before the Supreme Court, the Company continues not to provide for the retrospective levy aggregating Rs.1,659.56 Lacs for the period 1 June 2007 to 31 March 2010, fully paid under protest.



3. IND AS 115 Revenue from Contracts with Customers, mandatory for reporting periods beginning on or after 1 April, 2018, replaces existing revenue recognition requirements. The Company has applied the modified retrospective approach, therefore revenue for quarter and nine months ended 31 December, 2017 are strictly not comparable with quarter and nine months ended 31 December, 2018 and there are no adjustments required to the retained earnings as at 1 April, 2018. Due to the application of IND-AS 115, revenue for the quarter and nine months ended 31 December, 2018 is lower by Rs.8,055.85 Lacs and Rs.23,147.41 Lacs respectively and other operating income is higher by Rs.2,804.73 Lacs and Rs.7,990.44 Lacs respectively resulting into net reduction in revenue from operations and cost of goods sold by Rs.5,251.12 Lacs and Rs.15,156.97 Lacs respectively on account of impact of sales or return basis arrangements. However, this does not have any impact on profits for the quarter and nine months ended 31 December, 2018.



4. Depreciation includes accelerated amounts on account of change in estimate of useful lives of property plant and equipment resulting from store closures / renovations as under:



(Rs.in Lacs)

Standalone

For the Quarter Ended For the Nine Months Ended For the Financial Year Ended

31 Dec 2018 30 Sep 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017 31 March 2018

260.82 602.90 556.24 1,383.72 1,315.24 1,640.73



5. During the quarter ended 30 June 2018, 29239 equity shares were allotted under the Company's Employee Stock Option Scheme. Consequently, the issued and paid up share capital of the Company as on 31 Dec 2018 stands increased to Rs.4,399.50 Lacs. Further, the Company has made two grants aggregating to 14,444 and one grant aggregating to 28,720 Employee Stock Options to eligible employees during the quarter ended 30 June 2018 and 30 Sep 2018 respectively.



6. During the previous quarter ended 31 Dec 2017, exceptional item comprises loss on sale of subsidiary amounting to Rs.1,486.75 Lacs and provision for impairment /loss on sale of joint ventures amounting to Rs.175.57 Lacs aggregating to Rs.1,662.32 Lacs.

During the previous nine month and year ended 31 Dec 2017 and 31 March 2018 respectively, exceptional item comprise of loss on sale of subsidiary amounting to Rs.4,886.75 Lacs and loss on sale of joint ventures amounting to Rs.154.21 Lacs aggregating to Rs.5,040.96 Lacs.



7. These unaudited financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on 21st January 2019 and 28th January 2019 respectively. The statutory auditors have carried out the limited review of these results.



8. The previous period's figures have been regrouped / reclassified wherever necessary.