Atul Ltd 2018-19

Note 28.7 Fair value measurements (continued) ( ` cr) iv) 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 5.1 - - 5.72 5.72 Government securities 5.2 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 ¹ūƥîŕ ǛŠîŠČĿîŕ îƙƙĚƥƙ 0.01 - 15.14 15.15 Financial liabilities Borrowings 15 - - 0.01 0.01 Security deposits 16 - - 19.80 19.80 ¹ūƥîŕ ǛŠîŠČĿîŕ ŕĿîċĿŕĿƥĿĚƙ - - 19.81 19.81 Investment properties 3 - - 141.00 141.00 ¹Includes investments in Bharuch Enviro Infrastructure Ltd (70,000 equity shares), in Narmada Clean Tech Ltd (7,15,272 equity shares) and in OPGS Power Gujarat Pvt Ltd (5,03,000 equity shares) which are for operation purposes 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: gĚǄĚŕ ǧ ĺĿĚƑîƑČĺǋ ĿŠČŕƭēĚƙ ǛŠîŠČĿîŕ ĿŠƙƥƑƭŞĚŠƥƙ ŞĚîƙƭƑĚē ƭƙĿŠij ƐƭūƥĚē ƎƑĿČĚƙȦ ¹ĺĚ ljîĿƑ ǄîŕƭĚ ūlj îŕŕ ĚƐƭĿƥǋ ĿŠƙƥƑƭŞĚŠƥƙ which are traded on the Stock Exchanges is valued using the closing price as at the reporting period. Level 2: ¹ĺĚ ljîĿƑ ǄîŕƭĚ ūlj ǛŠîŠČĿîŕ ĿŠƙƥƑƭŞĚŠƥƙ ƥĺîƥ îƑĚ Šūƥ ƥƑîēĚē ĿŠ îŠ îČƥĿǄĚ ŞîƑŒĚƥ ȳljūƑ ĚǊîŞƎŕĚȡ ūǄĚƑȹƥĺĚȹČūƭŠƥĚƑ ēĚƑĿǄîƥĿǄĚƙȴ is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on ĚŠƥĿƥǋȹƙƎĚČĿǛČ ĚƙƥĿŞîƥĚƙȦ ¹ĺĚ Şƭƥƭîŕ ljƭŠē ƭŠĿƥƙ îƑĚ ǄîŕƭĚē ƭƙĿŠij ƥĺĚ ČŕūƙĿŠij ŠĚƥ îƙƙĚƥƙ ǄîŕƭĚȦ Tlj îŕŕ ƙĿijŠĿǛČîŠƥ ĿŠƎƭƥƙ ƑĚƐƭĿƑĚē to fair value an instrument are observable, the instrument is included in levels 1 and 2. Level 3: Tlj ūŠĚ ūƑ ŞūƑĚ ūlj ƥĺĚ ƙĿijŠĿǛČîŠƥ ĿŠƎƭƥƙ Ŀƙ Šūƥ ċîƙĚē ūŠ ūċƙĚƑǄîċŕĚ ŞîƑŒĚƥ ēîƥîȡ ƥĺĚ ĿŠƙƥƑƭŞĚŠƥ Ŀƙ ĿŠČŕƭēĚē ĿŠ ŕĚǄĚŕ ǩȦ b) Valuation technique used to determine fair value ¬ƎĚČĿǛČ ǄîŕƭîƥĿūŠ ƥĚČĺŠĿƐƭĚƙ ƭƙĚē ƥū ǄîŕƭĚ ǛŠîŠČĿîŕ ĿŠƙƥƑƭŞĚŠƥƙ ĿŠČŕƭēĚȠ 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 Balance Sheet date iii) the fair value of foreign currency option contracts is determined using the Black Scholes valuation model ĿǄȴ ƥĺĚ ljîĿƑ ǄîŕƭĚ ūlj ƥĺĚ ƑĚŞîĿŠĿŠij ǛŠîŠČĿîŕ ĿŠƙƥƑƭŞĚŠƥƙ Ŀƙ ēĚƥĚƑŞĿŠĚē ƭƙĿŠij ēĿƙČūƭŠƥĚē Čîƙĺ ǜūǅ îŠîŕǋƙĿƙ All of the resulting fair value estimates are included in levels 1 and 2. c) Valuation processes ¹ĺĚ GĿŠîŠČĚ ēĚƎîƑƥŞĚŠƥ ūlj ƥĺĚ ūŞƎîŠǋ ĿŠČŕƭēĚƙ î ƥĚîŞ ƥĺîƥ ƎĚƑljūƑŞƙ ƥĺĚ ǄîŕƭîƥĿūŠƙ ūlj ǛŠîŠČĿîŕ îƙƙĚƥƙ îŠē ŕĿîċĿŕĿƥĿĚƙ ƑĚƐƭĿƑĚē ljūƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij ƎƭƑƎūƙĚƙȡ ĿŠČŕƭēĿŠij ŕĚǄĚŕ ǩ ljîĿƑ ǄîŕƭĚƙȦ 163 Standalone | Notes to the Financial Statements