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

 

formation

s otherwise stated)

Note
No.
40

Financial instruments

The average credit period on sale of products ranges between 30 to 60 days. The credit worthiness of trade receivables and the credit terms set are
determined on a case to case basis and the Management has factored in the uncertainties arising out of COVID-19, as applicable. The fair values of trade
receivables are not considered to be significantly different from their carrying values, given their generally short period to maturity, with impairment

 

     

reviews considered on an individual ba

 

 

the receivables are due and the rates as given in the prov

 

rather than when these become overdue. The expected credit loss allowance is based on the ageing of the days
jon matrix. The provision matrix at the end of the reporting period is as follows

 

 

 

 

 

 

 

 

 

‘Ageing in days As at
31/Mar/2019
030 6.10
31-60 91.27
61-90 67.28
91-120 87.01
121-180 72.89
181-365 18.90
Above 365 0.32
Total 400.77
Movement in the expected credit loss allowance
Particulars As at
31/Mar/2019
‘Opening balance 0.16
Provision made during the year S
Amount written off during the year (0.16)
(Closing balance ~

 

(@)_ Financial instruments and cash & bank deposits

Credit risk from balances with banks and financial institution

     

 

policy. Investments of surplus funds are made in bank deposits and mutual funds. The limi

mitigate financial loss through counter party’s potential failure to make payments.

 

The Compan
Receivables and other financial assets are written off when there is no reasonable expectat
repayment plan with the company.

 

 

is managed by the Company's finance department in accordance with the Company's
are set to minimize the concentration of risks and therefore

 

s maximum exposure to credit risk for the components of the balance sheet is the carrying amounts which are given below. Trade
mn of recovery, such

is debtor failing to engage in the

 

 

 

   

Particulars As at
31/Mar/2019

Non-current assets

Other Financial Asset 179.44

Investments ”
Current assets

Investments 234.47

Trade receivables 400.77

Cash and cash equivalents 106.13

Bank balance other than cash and cash equivalents 330.42

Other Financial Asset 17.50

 

 

 

Balances with banks 1s subject to low credit risks due to good credit ratings assigned to these banks.

 

(©) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet it
objective is to at all times maintain optimum levels of liqui
position and deploys a robust cash management system. It maintains adequate source of finan
credit facility. Processes and policies related to
through rolling forecasts on the basis of expected cash flows. The Company asses
be very low.

   

 

 

   

   

298

to meet its cash and liquidity requirements. The Company closely monitors its liqui

obligations on time or at reasonable price. The Company's

 

ity

ing through the use of short term investments and a cash
ich risks are overseen by senior management. Management monitors the Company's liquidity position
ed the concentration of risk with respect to its debt and concluded it to
