Go Fashion (India) Limited {formerly known as Go Fashion (India) Private Limited}

Notes to the restated consolidated financial
(Amount in & Millions, except for share data or

Note
No.
40
@)

(b)

@

(i)

©

 

formation
s otherwise stated)

 

Financial instruments

Capital Management

‘The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of
the business. The Company monitors the return on capital as well as the level of dividends on its equity shares. The Company's objective when managing
capital is to maintain an optimal structure so as to maximize shareholder value.

 

  

 

 

 

 

Particulars Asat
31/Mar/2019
Total equity attributable to the equity shareholders of the company 2,283.34
As a percentage of total capital 97%
Current borrowings 82.81
As a percentage of total capital 3%
Total Capital 2,366.15

 

 

 

The Company is predominantly financed through equity, which is evident from the capital structure table. There is no change in the overall capital risk
management strategy of the Company compared to last year

Categories of financial instruments
‘The carrying value of the financi:

   

instruments by categories

 

 

 

 

 

 

 

 

 

Particulars Carrying value_| Fair value
31/Mar/2019_ | 31/Mar/2019
Financial assets
Measured at fair value though profit and loss
Investments in mutual funds 234.47 234.47
Measured at amortised cost
Investment in subsidiary - -
Other financial assets 196.94 196.94
Trade receivables 400.77 400.77
Cash and cash equivalents 106.13 106.13
Bank balance other than cash and cash 330.42 330.42
equivalents
Total 1,268.73 1,268.73
Financial liabilities
Measured at amortised cost
Borrowings 82.81 82.81
Lease liabilities 1,455.70 1,455.70
Trade payables 138.14 138.14
Other financial liabilities 15.78 15.78
Total 1,692.43 1,692.43

 

 

 

 

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between
willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values

 

 

The Company has disclosed financial instruments such as comprise of borrowings, trade payable, and other current liabilities, loans, trade receivable,
cash and cash equivalents and bank balances other than cash and cash equivalents at carrying value because their carrying values are a reasonable
approximation of the fair values due to their short term nature.

Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit
worthiness of the counter party.

Financial risk management

The Company's principal financial liabilities, comprise of borrowings, trade payable and other financial liabilities

The main purpose of these financial liabilities is to finance the Company’s operations. The Company's principal financial assets include investments,
loans, trade receivables, cash and cash equivalents and bank balances other than cash and cash equivalents that are derived directly from its operations

       

 

The Company’s financial ris
credit risk and liquidity risk,

management is an integral part of how to plan and execute its business strategies, The Company is exposed to market risk,

 

  

   

The Company’s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the

appropriate financial risk governance framework for the Company are accountable to the Board of Directors.

   

This process provides assurance to Company’s senior management that the Company's financial risk-taking activities are governed by appropriate
policies and procedures and that financial risks are identified, measured and managed in accordance with Company policies and Company's risk objective.

   

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