Atul Ltd 2019-20

147 Standalone | Notes to the Financial Statements Note 28.7 Fair value measurements (continued) b) Valuation techniques used to determine fair value Specific valuation techniques used to value financial instruments include: i) the use of quoted market prices or dealer quotes for similar instruments ii) the fair value of forward foreign exchange contracts are determined using forward exchange rates at the Standalone Balance Sheet date iii) the fair value of foreign currency option contracts is determined using the Black Scholes valuation model iv) the fair value of the remaining financial instruments is determined using discounted cash flow analysis All of the resulting fair value estimates are included in level 1 and 2. c) Valuation processes The Finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. d) Fair value of financial assets and liabilities measured at amortised cost ( ` cr) Particulars As at March 31, 2020 As at March 31, 2019 Carrying amount | Fair value Carrying amount | Fair value Financial assets Investments: Preference shares 4.92 5.24 Government securities 0.01 0.01 Loans 17.50 4.92 Security deposits for utilities and premises 2.14 1.76 Finance lease receivables 1.20 1.33 Total financial assets 25.77 13.26 Financial liabilities Security deposits 27.53 22.39 Total financial liabilities 27.53 22.39 The carrying amounts of trade receivables, cash and cash equivalents, other bank balances, dividend receivables, other receivables, trade payables, capital creditors, other liabilities are considered to be the same as their fair values due to the current and short-term nature of such balances. The fair values for loans and investments in preference shares were calculated based on cash flows discounted using a current lending rate at the time of inception. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.