 

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

 

2.3 Critical accounting judgements and key sources of estimation uncertainty
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires the management of the Company to make estimates and assumptions}
that affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expense for the}
periods presented. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and]
future periods are affected.

In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most
restated financial statements are included in the following notes:

 

significant effect on the amounts recognized in the|

(i Usefl lives of Property, plant and equipment (Refer Note 2.9)
(Gi) Assets and obligations relating to employee benefits (Refer Note 2.7)

(iii) Valuation and measurement of income taxes and deferred taxes (Refer Note 2.8)
(iv) Valuation and measurement of Right to Use Assets and Liabilities (Refer Note 2.6)
(v) Impairment of Assets (Refer Note 2.11)

(vi) Impact of COVID 19 on the company

 

2.4 Revenue recognition
Revenue from contract with customer is recognised, when control of the goods or services are transferred to the customer, at an amount that reflects the consideration to which the Company is,
expected to be entitled in exchange for those goods or services. The specific recognition criteria described below must also be met before revenue is recognised. Revenue is recognised as follows:

 

Sale of goods
Revenue from contracts with customers
Revenue from contracts with customers is recognised upon transfer of control of promised goods’ services to customers at an amount that reflects the consideration to which the Company expect to
be entitled for those goods/ services.
To recognize revenues, the Company applies the following five-step approach:
+ Identify the contract with a customer;
+ Identify the performance obligations in the contract;
+ Determine the transaction price;
Allocate the transaction price to the performance obligations in the contract; and
+ Recognise revenues when a performance obligation is satisfied,
Revenue from sale of product
Revenue is measured at the fair value of the consideration received or receivable net of returns and allowances, trade discounts and volume rebates, taking into account contractually defined terms of
payment excluding taxes or duties collected on behalf of the government
Goods and Service Tax (GST) is not received by the Company in its own account. Rather, itis tax collected on value added to the commodity by the seller on behalf of the government. Accordingly.
it is excluded from revenue.
Refund liabilities
‘A refund liability is the obligation to refund part or all of the consideration received (or receivable) from the customer. The Company has therefore recognised refund liabilities in respect of customer's
right to return, The liability is measured at the amount the Company ultimately expects it will have to return to the customer. The Company updates its estimate of refund liabilities (and the|
corresponding change in the transaction price) at the end of each reporting petiod.
The Company has presented its right to return assets and refund liabilities as required under Ind AS 115 in the financial statements.
Income from gift voucher
Gift voucher sales are recognised when the vouchers are redeemed, and the goods are sold to the customer.

Dividend and Interest Income

Dividend income from investments is recognised when the Company’s right to receive payment has been established. Realised Gain from Redemption of Growth oriented mutual fund schemes are}
recognised in Profit and Loss Account upon receipt of redemption proceeds, and unrealised gain on Mark to Market re-statement of Mutual Funds are measured at Fair Value through Profit and Loss}
Account as on the Balance Sheet closing date. Interest income is accrued on time basis, by reference to the principal outstanding and at the effective interest rate applicable.

   

2.5 Foreign currencies
Determination of functional currency:
Currency of the primary economic environment in which the Company operates (“the functional currency”) is Indian Rupee (INR) in which the company primarily generates and expends cash.
Accordingly, the Management has assessed its functional currency to be Indian Rupee (INR).
Transactions in foreign currency are recorded on the basis of the exchange rate prevailing as on the date of transaction. Monetary assets and liabilities denominated in foreign currency are restated at]
rates prevailing at the year-end. The net loss or gain arising out of such restatement is dealt with in the Statement of Profit and Loss.

 

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