Atul Ltd 2019-20

Corporate Overview Statutory Reports Financial Statements 01-21 22-91 92-228 146 Atul Ltd | Annual Report 2019-20 a) Fair value hierarchy This section explains the judgements and estimates made in determining the fair values of the financial instruments that are a) recognised and measured at fair value and b) measured at amortised cost and for which fair values are disclosed in the Standalone Financial Statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed in the Indian Accounting Standard. An explanation of each level follows underneath the table: ( ` cr) i) Financial assets and liabilities measured at fair value as at March 31, 2020 Note Level 1 Level 2 Level 3 Total Financial assets Financial investments at FVOCI: Quoted equity shares 5.2 465.51 - - 465.51 Unquoted equity shares 1 5.2 - - 0.80 0.80 Mutual funds at FVPL 5.3 - 627.49 - 627.49 Total financial assets 465.51 627.49 0.80 1,093.80 Financial liabilities Derivatives designated as hedges: Currency options 15 - 1.62 - 1.62 Total financial liabilities - 1.62 - 1.62 ( ` cr) ii) Financial assets and liabilities measured at fair value as at March 31, 2019 Note Level 1 Level 2 Level 3 Total Financial assets Financial Investments at FVOCI: Quoted equity shares 5.2 525.32 - - 525.32 Unquoted equity shares 1 5.2 - - 0.80 0.80 Mutual funds at FVPL 5.2 - 197.64 - 197.64 Derivatives designated as hedges: Currency options 7 - 1.22 - 1.22 Total financial assets 525.32 198.86 0.80 724.98 ¹ Includes investments in Bharuch Enviro Infrastructure Ltd (70,000 equity shares), Narmada Clean Tech Ltd (7,15,272 equity shares) and OPGS Power Gujarat Pvt Ltd (5,03,000 equity shares) which are for operation purpose and the Company expects its refund on exit. The Company estimates that the fair value of these investments are not materially different as compared to its cost. There were no transfers between any levels during the year. Level 1: This includes financial instruments measured using quoted prices. The fair value of all equity instruments which are traded on the Stock Exchanges is valued using the closing price as at the reporting period. Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. The mutual fund units are valued using the closing net assets value. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Note 28.7 Fair value measurements (continued)