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

 

1 General Background
Go Fashion (India) Limited {formerly known as Go Fashion (India) Private Limited} ("the Company") was incorporated on September 09, 2010. The Company's registered office is at New No.4,
Old No. 14/2, Sth Floor, Sathak Center, Nungambakkam High Road, Chennai - 600 034, Tamilnadu, India. The Company is mainly engaged in the business of manufacture and sale of apparels for
women and kids.

 

Basis of preparation and presentation:

The Restated Consolidated Financial Information of the Company and its subsidiaries (the "Group") comprises the Restated Consolidated Statement of Assets and Liabilities as at 31 March 2019, the
Restated Consolidated Statements of Profit and Loss (including other comprehensive income), the Restated Consolidated Statement of Changes in Equity and the Restated Consolidated Cash Flow
Statement for the year ended March 31, 2019 and the Summary Statement of Significant Accounting Policies, and other explanatory notes (collectively referred to as, ‘Restated Consolidated
Financial Information’). These Restated Consolidated Financial Information have been prepared by the management of the Company for the purpose of inclusion in the red herring prospectus and the
prospectus (Collectively the “Offer Document’) prepared by the Company in connection with its proposed Initial Public Offer (‘IPO’) in terms of the requirements of:

(a) Section 26 of Part I of Chapter III of the Companies Act, 2013, as amended (‘Act’);

(b) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (‘ICDR Regulations’); and

(c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI), as amended (“Guidance Note’)

These Restated Consolidated Financial Information have been compiled by the Management from:

the special purpose audited Ind AS financial statements of the Group as at the year ended March 31, 2019 prepared in accordance with the Indian Accounting Standards (referred to as “Ind AS”) as
issued by Institute of Chartered Accountants of India, and other accounting principles generally accepted in India which have been approved by the Board of Directors at their meeting held on August
12, 2021.

Since Go Fashion FZE (the "Subsidiary") was liquidated on February 4, 2019, the financial information for such entity has been consolidated for the petiod from April 1, 2018 to February 4, 2019 in
accordance with Ind AS-110 "Consolidated Financial Statements"

These Restated Consolidated Financial Information do not reflect the effects of events that occurred subsequent to August 1,2019.

Subsequent to year ended March 31, 2019, the Company did not have any subsidiary and accordingly it was not required to prepare consolidated financial statements. Accordingly, the Restated
Consolidated Financial Information:

(a) have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications retrospectively in the financial years ended 31 March
2019 to reflect the same accounting treatment as per the accounting policy and grouping / classifications followed in the Special Purpose Interim financial statements of the Company as at and for the
three months ended June 30, 2021, as applicable.

(b) do not require any adjustment for modification as there is no modification in the underlying audit reports.

The Company follows historical cost convention and accrual method of accounting in the preparation of the financial statements, except otherwise stated.

b Basis of Consolidation:
The consolidated financial statements for the year ended March 31, 2019, relate to Go Fashion (India) Limited, its wholly owned subsidiary company. The consolidated financial statements have
been prepared on the following basis:
i, The financial statements of the company and its subsidiary company have been combined on a line by line basis by adding together like items of assets, liabilities, income and expenses, after
eliminating intra-group balances, intra-group transactions and resulting unrealised profits or losses, unless cost cannot be recovered,
ii, The entity Go Fashion FZE (incorporated in Dubai), which is a 100% subsidiary of Go Fashion (India) Limited has been considered in the preparation of consolidated financial statements, upto
February 4, 2019 (date of liquidation of the subsidiary), for the year ended March 31, 2019.
iii, The consolidated financial statements have been prepared using uniform accounting policies for like transactions and other events
possible, in the same manner as the Company's seperate financial statements.

 

 

in similar circumstances and are presented to the extend

2 Significant accounting policies
2.1 Statement of compliance with Indian Accounting Standards (Ind AS's)
These Restated Financial Information of the Company have been prepared in accordance with Indian Accounting Standard (Ind AS) under the historical cost convention on the accrual basis except
for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (‘Act’) (to the extent notified). The Ind AS are prescribed under Section 133 of the Act
read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

 

2.2 Use of fair valuation
The restated financial statements have been prepared on the historical cost basis except for certain assets and liabilities which are measured at fair values at the end of each reporting period, as
explained in the accounting policies below:-

Historical cost is generally based on the fair value of the consideration given in exchange for goods.

Fair value is the price that would be received to sell an asset ot paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that
price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or
liability if market participants would consider those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in
these restated financial statements is determined on such a basis, except for measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or
value in use in Ind AS 36,

   

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and
the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

   

~ Level 1 : Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

 

= Level 2 : Inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
- Level 3 : Inputs are unobservable inputs for the asset or liability.

 

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