Go Fashion (India) Limited {formerly known as Go Fashion (India) Private Limited}
Notes to the restated financial information

 

2.18 Operating Cycle
Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its}
operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

2.19 Recent Accounting Pronouncements
Amendments to Ind AS 12 - Income Taxes
Appendix C to Ind AS 12, Uncertainty over Income Tax Treatments: On March 30, 2019, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards)}
Amendment Rules, 2019 containing Appendix C to Ind AS 12, Uncertainty over Income Tax Treatments which clarifies the application and measurement requirements in Ind AS 12 when there is}
uncertainty over income tax treatments. The current and deferred tax asset or liability shall be recognized and measured by applying the requirements in Ind AS 12 based on the taxable profit (tax|
loss), tax bases, unused tax losses, unused tax credits and tax rates determined by applying this appendix. The amendment is effective for annual periods beginning on or after April 1, 2019.
On March 30, 2019, the Ministry of Corporate Affairs has notified limited amendments to Ind AS 12 — Income Taxes. The amendments require an entity to recognise the income tax consequences of
dividends as defined in Ind AS 109 when it recognises a liability to pay a dividend. The income tax consequences of dividends are linked more directly to past transactions or events that generated]
distributable profits than to distributions to owners. Therefore, an entity shall recognize the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to]
where the entity originally recognised those past transactions or events. The amendment will come into force for accounting periods beginning on or after April 1, 2019,

  

Amendment to Ind AS 19 - Employee Benefits
On March 30, 2019, the Ministry of Corporate Affairs has notified limited amendments to Ind AS 19 — Employee Benefits in connection with accounting for plan amendments, curtailments and]
settlements. The amendments require an entity to use updated assumptions to determine current service cost and net interest for the remainder of the period after a plan amendment, curtailment on}
settlement and to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus, even if that surplus was not previously recognised because of the}
impact of the asset ceiling. The amendment will come into force for accounting periods beginning on or after April 1, 2019, though early application is permitted

12.20 Borrowing Cost
Borrowing costs consist of interest, ancillary and other costs that the Company incurs in connection with the borrowing of funds and interest relating to other financial liabilities. Borrowing costs also}
include exchange differences to the extent regarded as an adjustment to the borrowing costs,

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised]
as patt of the c«

 

t of the asset. All other borrowing costs are expensed in the period in which these occur.

 

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