back to note balance sheet

Best viewed in landscape mode

32_Fair_value_measurement

32 Fair value measurement

i) Financial instruments by category

(₹ In Crore)

31 March 2022

31 March 2021

Particulars

FVTPL

FVTOCI

Amortised Cost

FVTPL

FVTOCI

Amortised Cost

Financial assets

Investments

– Equity

–

1,898.08

–

–

1,274.23

–

– Bonds and debentures

–

–

3,834.66

–

–

1,803.30

– Government bonds and securities

–

–

857.47

–

–

659.54

– Exchange traded funds

–

–

5,515.81

–

–

2,320.75

– Fixed maturity plans

–

–

4,658.76

–

–

10,975.36

– Fixed deposits

–

–

1,115.00

–

–

107.84

– Short-term funds

3,089.61

–

–

2,949.10

–

–

– Long duration bond funds

786.39

–

–

748.10

–

–

– Liquid mutual funds

814.55

–

–

559.47

–

–

Trade receivables

–

–

1,516.38

–

–

2,716.85

Loans

–

–

8.74

–

–

10.96

Other financial assets

–

–

577.12

–

–

128.35

Cash and cash equivalents

–

–

563.97

–

–

505.13

Other bank balances

–

–

24.37

–

–

22.23

Derivative financial assets

–

80.53

–

–

121.39

–

4,690.55

1,978.61

18,672.28

4,256.67

1,395.62

19,250.31

Financial liabilities

Sales tax deferral

–

–

122.77

–

–

121.46

Trade payables

–

–

3,633.18

–

–

4,573.81

Other financial liabilities

–

–

397.00

–

–

407.44

Derivative financial liability

–

–

–

–

–

–

–

–

4,152.95

–

–

5,102.71

ii) Fair value hierarchy

This section explains the judgments 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 three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Financial assets/liabilities measured at fair value – recurring fair value measurements At 31 March 2022

(₹ In Crore)

Particulars

Notes

Level 1

Level 2

Level 3

Total

Financial investments at FVTPL

Short-term funds

5

3,089.61

–

–

3,089.61

Long duration bond funds

5

786.39

–

–

786.39

Liquid mutual funds

5

814.55

–

–

814.55

Financial investments at FVTOCI

Derivatives designated as hedges

Option contracts

7

–

80.53

–

80.53

Equity investment

5

1,753.87

–

144.21

1,898.08

6,444.42

80.53

144.21

6,669.16

Assets disclosed at fair value – At 31 March 2022

(₹ In Crore)

Particulars

Notes

Level 1

Level 2

Level 3

Total

Investment property

3

–

223.03

–

223.03

Financial assets/liabilities measured at fair value – recurring fair value measurements At 31 March 2021

(₹ In Crore)

Particulars

Notes

Level 1

Level 2

Level 3

Total

Financial investments at FVTPL

Short-term mutual funds

5

2,949.10

–

–

2,949.10

Long duration bond funds

5

748.10

–

–

748.10

Liquid mutual funds

5

559.47

–

–

559.47

Financial investments at FVTOCI

Derivatives designated as hedges

Option contracts

7

–

121.39

–

121.39

Equity investment

5

1,152.57

121.66

–

1,274.23

5,409.24

243.05

–

5,652.29

Assets disclosed at fair value – At 31 March 2021

(₹ In Crore)

Particulars

Notes

Level 1

Level 2

Level 3

Total

Investment property

3

–

205.55

–

205.55

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets. Quotes would include rates/values/valuation references published periodically by BSE, NSE etc. basis which trades take place in a linked or unlinked active market. This includes traded bonds and mutual funds, as the case may be, that have quoted price/rate/value.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data (either directly as prices or indirectly derived from prices) and rely as little as possible on entity-specific estimates. 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. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Valuation Techniques used to determine fair value

Valuation Techniques used to determine fair value include

• Open ended mutual funds at NAV's/rates declared and/or quoted

• Derivative Instruments at values determined by counter parties/Banks using market observable data.

iii) Fair value of financial assets and liabilities measured at amortised cost

(₹ In Crore)

31 March 2022

31 March 2021

Particulars

Carrying Amount

Fair value

Carrying Amount

Fair value

Financial assets

Investments

Bonds and debentures

3,834.66

3,797.62

1,803.30

1,780.78

Government bonds and securities

857.47

838.71

659.54

646.49

Exchange traded funds

5,515.81

5,482.98

2,320.75

2,303.55

Fixed maturity plans

4,658.76

4,636.65

10,975.36

11,121.18

14,866.70

14,755.96

15,758.95

15,852.00

The carrying amounts of fixed deposits, trade receivables, trade payables, other financial assets/liabilities, loans and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature.