Go Fashion (India) Limited {formerly known as Go Fashion (India) Private Limited}
Notes to the restated financial information
(Amount in Millions, except for share data or as otherwise stated)

Note
No.

45

 

Explanations to items included in computing the above rati
1. Current Ratio: Current Asset over Current Liabilities

2. Debt-Equity Ratio: Debt (includes Borrowings and Current & Non-Current Lease Liabilities) over total share holders equity (including Reserves & Surplus)
3. Debt Service Coverage Ratio: EBIT + Interest on lease liabilities + Depreciation over Lease payments (prinicipal + interest)

4, Return on Equity Ratio: Profit After Tax over average Equity (including Reserves & Surplus)

5. Inventory turnover ratio: Revenue over average Inventory
6.
1
8
9.

 

Trade Receivables tumover ratio: Revenue from operations over average Trade Receivable
Trade payables turnover ratio: Purchases over average Trade Payable
Net capital turnover ratio: Revenue from operations over average working capital
Net profit ratio: Profit After Tax over Revenue from operations
10. Return on Capital employed: Profit Before Interest & Tax over Capital employed (Capital employed includes total share holders equity, borrowings, short
term and long term lease liabilities)
11, Return on investment: Interest income on fixed deposit + Mutual fund investment gain over average investments (investments includes investments in mutual
funds, margin money and other bank deposits)
Note: The aforesaid ratios have not been annualised for June 30, 2021 and June 30, 2020.

‘The Non-GAAP measures presented may not be comparable to similarly titled measures reported by other companies. Further, it should be noted that EBIDTA,
EBITDA Margin, Gross Margin, Net worth, Return on Net Worth, Net Asset Value (per Equity Share), debt equity ratio, Return on Capital Employed, Return on
Equity is not a measure of operating performance or liquidity defined by generally accepted accounting principles and may not be comparable to similarly titled
measures presented by other companies.

 

“The Audit report dated September 17, 2020 has following other matter paragraph.

On account of COVID-19 related lock-down restrictions, management was able to perform year end physical verification of inventories, subsequent to the year
end at certain locations. We were not able to physically observe the verification of inventory that was carried out by the Management. Consequently, we have
performed alternative procedures to audit the existence of inventory as per the guidance provided by in SA 501 “Audit Evidence ~ Specific Considerations for
Selected Items” and have obtained sufficient audit evidence to issue our unmodified opinion on the statement. Our report on the financial statement is not
modified in respect of this matter.”

  

‘The Management maintains its inventory at various Company owned Exclusive Brand Outlets and warehouse locations. Due to restrictions imposed during the
COVID 19 related lockdowns, the management was unable to conduct the physical inventory count for the period ended 30th June 2020 and 30th June 2021,
consequently we could not observe physical verification of inventory as on 30th June, 2020 and 30th June 2021. However, the management had, for its internal
purposes, physically verified inventories as on March 31, 2021 at all the locations. No material discrepancies were noted between the inventory as per books and
actual inventory as on the date of verification. Consequent to our inability to physically verify the inventory, as required by SA 501” Audit Evidence ~ Specific
Considerations for Selected Items”, we have performed alternate procedures to audit the existence of inventory which inter alia included the following on a test
check basis; (a) Tested the design and implementation of controls over inventory movement, (b) Verified the quantitative reconciliation from 30th June 2020 till
3lst March 2021, i.e.; the date of physical count performed by the Management and reconciliations from 31 March 2021 till 30th June 2021, including

 

inspection of supporting documents related to purchases, sales and purchase / sales return for the reconciliation period, (c) Examined evidence supporting the

subsequent sale of inventory existing as on 30th June 2020 and 30th June 2021, based on product code for quantities held as inventory on 30th June 2020 and

30th June 2021 and the realization of sale proceeds were traced to the bank statements.

Impact of COVID -19

‘The Company has considered internal and certain external sources of information up to the date of approval of the financial statements in determining the impact
on various elements of its financial statements, The Company has used the principles of prudence in applying judgments, estimates and assumptions and based
on the current estimates, the Company expects to fully recover the carrying amount of trade receivables, investments, inventories and other assets. The eventual
outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of special purpose interim standalone financial
statements.

   

Signatures to Notes 1 to 45

For and on behalf of the Board of Directors of Go Fashion (India) Limited {formerly known as Go Fashion (India) Private Limited}

 

Prakash Kumar Saraogi Gautam Saraogi R Mohan Gayathri V
Director Director Chief Financial officer Company Secretary
DIN: 00496255 DIN: 03209296

Chennai, October 29, 2021

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