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. 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 Consolidated 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 flows analysis. All of the resulting fair value estimates are included in level 1, 2 and 3. c) Valuation processes The Finance department of the Group includes a team that performs the valuations of financial assets and liabilities with assistance from independent external experts when 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, 2025 As at March 31, 2024 Carrying amount | Fair value Carrying amount | Fair value Financial assets Investments: Government securities 0.01 0.01 Security deposits for utilities and premises 6.47 6.06 Finance lease receivables 5.57 5.98 Total financial assets 12.05 12.05 Financial liabilities Borrowings 197.69 231.85 Lease liabilities 4.04 4.70 Other liabilities 5.13 8.20 Total financial liabilities 206.86 244.75 The carrying amounts of trade receivables, cash and cash equivalents, loan, other bank balances, other receivables, trade payables, capital creditors, security deposits, employee benefit payables, 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 of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk. Note 30.8 Financial risk management Risk management is an integral part of the business practices of the Group. 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 Group has developed and implemented a comprehensive risk management system to ensure that risks to the continued existence of the Group 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: Note 30.7 Fair value measurements (continued) 285 285 Corporate overview Performance overview ESG overview Statutory Reports Financial Statements
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