Shopper's Stop Limited - Securities and Exchange Board of India

unable to state with certainty about any liability or contingent liability in respect of the said
entities.
In respect of some of the Mumbai Undivided Properties and Entities where returns of
income (under the I.T. Act ) were filed for some of the years, the tax and penalty demands
raised have largely been paid except in a few cases amounting to Rs. 53,32,033/-(plus
interest) which tax demands and claims are outstanding. Against the said tax demands in
some of these entities there are refunds due of approximately 14,47,380/- (plus interest)
and in one case the Income Tax Authorities have attached one of the properties of one of
these companies for recovery of the said demands. Further where assessments have not
been completed the tax demands, if any, are not known.
Various private trusts were constituted, under which the members of the K. Raheja Corp
Group were, along with certain other persons, beneficiaries. These private trusts were so
organized such that only one trust was engaged in the carrying on of business. Some of
these trusts were also partners in partnership firms (for the purpose of sharing in the profits
and losses, although not involved in the day to day operation of the business of such
partnership firms). The other remaining trusts were only direct or indirect beneficiaries of
the aforesaid private trust carrying on business. We understand from our Promoters that
while the affairs of the private trust which was carrying on business have been wound up
and also the trusts which were partners in some partnership firms have ceased to be
partners and complete distribution of assets has also taken place, in some of the
beneficiary trusts, though the date of distribution of assets have passed, certain assets are
yet to be distributed. Our Promoters believe that the amounts involved in these trusts are
insignificant and are not expected to have any material impact on our Company or our
Promoters.
Southern Undivided Companies and Entities
The Southern Undivided Companies and Entities comprise of various companies,
partnership firms and trusts.
In respect of the South Entities, our Promoters have relied upon and fully disclosed all
the details provided by the other family members and also the information available
with them in this regard.
In respect of one of such companies, the finalisation of accounts, audit, filing of various
returns and forms with different authorities and various other statutory compliances for
last several years have not been made due to family differences and disputes as
mentioned above. Further, in respect of the remaining entities some of the statutory
compliances, etc. may not have been fully carried out due to the said family
differences and disputes. In view of the said differences and disputes, also the fact
that C.L. Raheja Family alone is not in ownership and control of the said Southern
Undivided Companies and Entities and due to said non-compliances (herein
mentioned in this clause), our Promoters are unable to state with certainty about any
liabilities or contingent liability other than those reflected in the annual audited
accounts of those entities.
Except as disclosed elsewhere in the draft Red Herring Prospectus, there are no
pending litigation/ disputes in respect of these entities which our Promoters are aware
of. However, due to the peculiar circumstances, our Promoters cannot certify with
certainty the comprehensiveness or completeness of the information relating to these
entities. However, except with regard to the premises at Bangalore from which we
operate our store, our Promoters do not expect any material impact on account of the
disputes relating to these entities in the operations of our Company.
The existence, value, impact and resulting liability, if any with regard to any such
claims involving the Mumbai Undivided Properties and Entities and/or the Southern
Undivided Entities cannot be ascertained as on the date of this draft Red Herring
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