173 Statutory Reports 24 - 109 Financial Statements 110 - 263 Corporate Overview 01 - 23 Note 28.7 Fair value measurements (continued) d) Fair value of financial assets and liabilities measured at amortised cost (` cr) Particulars As at March 31, 2022 As at March 31, 2021 Carrying amount | Fair value Carrying amount | Fair value Non-current financial assets Investments: Preference shares 1.81 3.44 Government securities 0.01 0.01 Loans 375.74 30.85 Security deposits for utilities and premises 2.18 1.80 Finance lease receivables 12.63 5.86 Total non-current financial assets 392.37 41.96 Non-current financial liabilities Other liabilities 2.73 2.53 Total non-current financial liabilities 2.73 2.53 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 prevailing lending rate at the time of inception. Note 28.8 Financial risk management Risk management is an integral part of the business practices of the Company. The framework of risk management concentrates on formalising a system to deal with the most relevant risks, building on existing management practices, knowledge and structures. With the help of a reputed international consultancy firm, the Company has developed and implemented a comprehensive risk management system to ensure that risks to the continued existence of the Company as a going concern and to its growth are identified and remedied on a timely basis. While defining and developing the formalised risk management system, leading standards and practices have been considered. The risk management system is relevant to business reality, pragmatic and simple and involves the following: i) Risk identification and definition: Focused on identifying relevant risks, creating | updating clear definitions to ensure undisputed understanding along with details of the underlying root causes | contributing factors. ii) Risk classification: Focused on understanding the various impacts of risks and the level of influence on its root causes. This involves identifying various processes generating the root causes and clear understanding of risk interrelationships. iii) Risk assessment and prioritisation: Focused on determining risk priority and risk ownership for critical risks. This involves assessment of the various impacts taking into consideration risk appetite and existing mitigation controls. iv) Risk mitigation: Focused on addressing critical risks to restrict their impact(s) to an acceptable level (within the defined risk appetite). This involves a clear definition of actions, responsibilities and milestones. v) Risk reporting and monitoring: Focused on providing to the Board and the Audit Committee periodic information on risk profile evolution and mitigation plans. .
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