Amal Ltd 2017-18

91 Note 32: Fair value measurements (continued) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. c) Valuation technique used to determine fair value Specific valuation techniques used to value financial instruments include: i) the use of quoted market prices ii) the fair value of the remaining financial instruments is determined using discounted cash flow analysis d) Valuation processes The Company obtains assistance of independent and competent third party valuers to perform the valuations of financial assets and liabilities wherever required for financial reporting purposes, including level 3 fair values. These experts report to the financial Risk Management team, Chief Financial Officer (CFO) and the Audit Committee (AC). Discussions of valuation processes and results are held between the Chief Financial Officer and the Audit Committee. e) Fair value of financial assets and liabilities measured at amortised cost ( ` 000) Particulars As at March 31, 2018 AS at March 31, 2017 Carrying amount Fair value Carrying amount Fair value Financial assets Security deposits for utilities and premises 3,905 3,905 3,905 3,905 Financial liabilities Borrowings 1,34,406 1,34,406 1,49,667 1,49,667 Total financial liabilities 1,34,406 1,34,406 1,49,667 1,49,667 The carrying amounts of trade receivables, bank deposits with more than 12 months maturity, cash and cash equivalents, trade payables, employee benefit payables, payables towards expenses and retention payables are considered to be the same as their fair values due to the current and short-term nature of such business. 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. f) Valuation inputs and relationships to fair value ( ` 000) Particulars Fair value as at Valuation technique Significant unobservable inputs and range March 31, 2018 March 31, 2017 Investment in equity shares 1 210 210 Refer Note 1 Refer Note 1 1 The change in the unobservable inputs for unquoted equity instruments does not have a significant impact in its value Note: i) For investment held by the Company in equity shares of Bharuch Enviro Infrastructure Ltd, its cost of acquisition has been considered as fair value, considering the statutory requirement of regulatory authorities relating to purchase and restriction on transfer. All other investments in unquoted equity shares held by the Company relate to non operating | loss making entities which have been impaired in the past, and there are no factors which indicate upward valuation. Notes to the Financial Statements