Go Fashion (India) Limited {formerly known as

 

‘0 Fashion (India) Private Limited}

Notes to the restated financial information
(Amount in & Millions, except for share data or as otherwise stated)

Note
No.
6

(a)

()

©

@

©

wo

Leases
The Company has adopted Ind AS 116 ‘Leases’ with the date of initial application being 01-Apr-2019. Ind AS 116 replaces Ind AS 17 — Leases and related
interpretation and guidance. The Company had used simplified transition approach under Ind AS 116, under which the difference between right-to-use asset and
is adjusted against retained earnings as on the date of transition. For the purpose of restated financial information the proforma transition date has
sd as O1 April 2018,

       

 

lease liabilit

 

been consid
Some leases of office buildings contain extension options exercisable by the Company upto one year before the end of the non-cancellable contract period. Where
practicable, the Company seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the
‘Company and not by the lessors.

Right-of-use assets

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Particulars ‘Asat

30/sun/2021] —_30/Sun/2020[ 31/Mar/2021[_31/Mar/2020|_31/Mar/2019
‘Opening balance 2,006.14 1,947.14 1,947.14 1,369.46 830.51
Add: Addition during the year 278.92 254.82 656.77 972.13 820.35
Less: Impact on lease termination 96.53 981 83.14 - -
Less: Amortised during the 137.24 125.72 514.63 394.45 273.49
Total 2,051.29 2,066.43 2,006.14 1,947.14 1377.37
For details on Restatement adjustments on ROU assets & lease abilities Refer Note 41
Lease liabilities
The following is the movement in lease liabilities
Particulars Asat

30/sun/2021] _30/dun/2020[ 31/Mar/2021[_31/Mar/2020|_31/Mar/2019
‘Opening balance 2,219.04 2,067.94 2,067.94 1,369.46 830.51
Additions 278.92 254.82 656.77 972.14 820.35
Impact of lease termination 105.09 12.45 95.07 - :
Deletions - :
Interest 56.92 50.96 202.90 163.87 113.60
Lease payments 161.92 149.43 613.50 437.53 308.76
Closing balance 2,287.88 221184 2,219.04 2,067.94 1,455.70
Non-current lease Tabilities 1,650.67 1,590.81 2,173.18 1,794.28 1,440.27
Current lease liabilities 637.21 621.03 45.86 273.66 15.43
For details on Restatement adjustments on ROU assets & lease labilities Refer Note 41
Lease related expenses debited to Statement of profit or loss
Particulars For the three months period ‘or the year ended

ended

30/sun/2021] —_30/dun/2020[ 31/Mar/2021[_31/Mar/2020] _31/Mar/2019
Tnterest expense on Tease Habilii 56.92 50.96 202.89 163.88 113.60
Amortisation of right-of-use assets 137.24 125.72 514.63 394.45 273.49
Expense relating to short-term k 1451 7.20 65.57 110.99 67.50

 

 

 

 

Contractual maturities of lease liabilities excluding interest thereon on an undiscounted basis

 

 

 

 

 

Particulars [Less than T year] I-Syears | More than Total
5 years

Balance as at
30/Sun/2021 637.21 1,797.58 478.23 2,913.02
30/Jurv2020 621.03 2,009.88 647.19 3,278.10

618.50 1,978.65 216.88 2,814.03

31/Mar/2020 536.27 1,832.05 310.40 2,678.72
31/Mar/2019 386.93 1,256.96 235.56 1,879.45

Operating lease commitment as lessee

Particulars For the three months period For the year ended

ended
30/Suni2021| —_30/Jun/2020| 31/Mar/2021[ 31/Mar/2020| _31/Mar/2019

 

 

[Expenses recognized in the statement of profit or loss

 

 

 

 

 

 

 

 

a) Minimum lease payments 94.06 58.46 378.29 501.84 354.52
b) Contingent rent 3.03 0.45 22.44 32.50 21.74
Total 97.09 38.91 400-72 334.34 376.26
Variable rent for certain stores is payable in accordance with the lease agreement as the higher of (a) fixed minimum guarantee amount and (b) revenue share

 

 

percentage

 

 

Agreements with a non-cancellable clause are executed for periods ranging from 6 to 108 months and with cancellable clause ranging from 7 to 108 months.
Gains arising from rent concession and early termination of lease arrangements:

‘The company has elected to apply the practical expedient of not assessing the rent concessions as a lease modification, as per Ministry of Corporate Affairs (MCA)
notification dated July 24, 2020 on IND AS 116 for rent cone
unadjusted lease value as per Ind AS 116 computation has been credited to Other income from lease accounting on IND AS 116, it amounts to % 74.20 Millions for
the period ended 30 June 2021 (2 93.01 Millions for the period ended 30 June 2020) and % 243.31 Millions for the year financial year 2020-21 (earlier years ® Nil)
During the period ended 30 June 2021 the company has also recognised % 8.56 Millions (2 2.64 Millions for the period ended 30 June 2020), and during the year
ended 31 March 2021, the company has recognised % 11.93 Millions (earlier years ® Nil), as Other income from lease accounting on IND AS 116, arising out of

ssions, which are granted due to COVID-19 pandemic. Consequently, the remaining amount of

 

difference between the closing lease asset & liability value, on account of short closure of le

 

e agreements.

The Company has discounted le:

 

payments using the applicable incremental borrowing rate of 9% for measuring the lease liability.

237
