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Atul Ltd | Annual Report 2017-18
Note 27.7 Fair value measurements
(continued)
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 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 3 levels prescribed under the Accounting Standard.
An explanation of each level follows underneath the table:
(
`
cr)
i)
Financial assets and liabilities
measured at fair value – recurring
fair value measurements
at March 31, 2018
Note
Level 1
Level 2
Level 3
Total
Financial assets
Financial investments at FVOCI:
Quoted equity shares
5
451.53
–
–
451.53
Unquoted equity shares
1
5
–
–
0.79
0.79
Share application money
5
0.01
–
–
0.01
Derivatives designated as hedges:
Foreign exchange forward contracts
–
0.07
–
0.07
Total financial assets
451.54
0.07
0.79 452.40
Financial liabilities
Derivatives designated as hedges:
Currency options
–
0.02
–
0.02
Derivatives not designated as hedges:
Currency swaps
–
–
–
–
Total financial liabilities
–
0.02
–
0.02
(
`
cr)
ii)
Assets and liabilities for which fair
values are disclosed at March 31,
2018
Note
Level 1
Level 2
Level 3
Total
Financial assets
Investments:
Preference shares
5
–
–
5.72
5.72
Government securities
5
0.01
–
–
0.01
Loans
6
–
–
7.07
7.07
Security deposits for utilities and
premises
7
–
–
1.10
1.10
Finance lease receivable
7
–
–
1.25
1.25
Total financial assets
0.01
–
15.14
15.15
Financial liabilities
Borrowings
15
–
–
0.01
0.01
Security deposits
16
–
–
19.80
19.80
Total financial liabilities
–
–
19.81
19.81
Investment properties
3
–
–
141.00
141.00
Notes
to the Financial Statements