Amal Ltd 2016-17

95 Notes to the Financial Statements The carrying amounts of trade receivables, bank deposits with more than 12 months maturity, cash and cash equivalents,Trade payables, employee benefit payable, provision for expenses and retention payable are considered to have their fair values approximately equal to their carrying values. 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 and counter party credit risk . (f) Valuation inputs and relationships to fair value ( ` 000) Fair value as at Valuation technique Significant unobservable inputs and range March 31, 2017 March 31, 2016 April 01, 2015 Investment in Equity Shares* 210 210 210 Refer Note 1 Refer Note 1 Note1: All investment in Unquoted Equity shares held by the company have been fully impaired, except for investment in equity shares of Bharuch Enviro Infrastructure Ltd for which, its cost of acquistion has been considered as fair value, Considering the statutory requirement of regulatory authorities relating to purchase and restriction on transfer. *The change in the unobservable inputs for unquoted equity instruments does not have a significant impact in its value. Note 35 Financial Risk Management The Company’s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company’s senior management has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The key risks and mitigating actions are also placed before the Audit Committee of the Company. The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Risk Management Committee of the Company is supported by the Finance team and experts who provides assurance that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The activities are designed to: -protect the Company’s financial results and position from financial risks; -maintain market risks within acceptable parameters, while optimising returns; and -protect the Company’s financial investments, while maximising returns. This note explains the sources of risk which the Company is exposed to and how the Company manages the risk in the financial statements. Risk Exposure arising from Measurement Management Credit Risk Cash and cash equivalents, trade receivables, financial assets measured at amortised cost. Aging analysis Credit rating Diversification of bank deposits, credit limits and letters of credit Liquidity Risk Borrowings and other liabilities Rolling cash flow forecasts Availability of committed credit lines and borrowing facilities