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

Current Liabilities
Our current liabilities largely relate to our payables to our suppliers for merchandise and includes our
consignors and concessionaires where accounts are settled and payments made periodically.
Besides these, we also have current liabilities related to the following:
1) FCC points – We provide for points accruing to our First Citizens on their purchases in our stores,
which they can redeem for merchandise. We study our past data to derive percentage of points
actually redeemed and accordingly provide for the same percentage of accrued points in our
expenses.
2) Gift Vouchers – We sell Gift Vouchers to our customers including corporates who use them for gifting
purposes. The Vouchers are accounted as current liabilities till they are redeemed for purchases at
our stores.
3) Credit Notes on Merchandise returns: We follow a merchandise return policy under which customers
can return merchandise purchased. At times, the merchandise sold is returned but new merchandise
not purchased simultaneously. We issue credit notes to such customers for the amount of the
products returned by them to enable them to exchange the same for merchandise later.
The trend of how our current liabilities (other than debts) have been for the last 3 years is given below:
Period ending March 31 2004 2003 2002
Gift Vouchers 41 22 15
Merchandise Credit Note 4 2 4
FCC Payable
Others including for purchase of
14 10 9
merchandise 495 409 243
Total 554 443 271
148
Rs mn
Our Results of Operations
The table below sets forth various line items from our restated audited financial statements for FY 2002,
FY 2003 and FY 2004
Period ending March 31 2004 2003 2002
Gross Retail Turnover 4045 3,030 2,495
Sales– Own merchandise (including
concessionaire sales).
3001 2508 2010
Sales – Consignment merchandise 953 441 392
Gross Retail Sales 3954 2949 2402
Other Retail Operating Income 73 58 53
Other Income 18 23 40
Cost of goods Sold 2712 2077 1757
Cost of goods sold as a % to Gross Retail Sales 68.59% 70.43% 73.15%