Amal Ltd 2018-19

Amal Ltd | Annual Report 2018-2019 Note 32: Fair value measurements (continued) ( ` 000) Assets and liabilities as at March 31, 2018 Level 1 Level 2 Level 3 Total Measured at fair value - recurring fair value measurements: Financial assets Mutual funds - 41,874 - 41,874 Investments in equity shares - - 210 210 For which fair values are disclosed Financial assets Security deposits for utilities and premises - - 3,905 3,905 Trade receivables - - 83,938 83,938 Financial liabilities - - - - Borrowings - - 1,34,406 1,34,406 Trade payables - - 19,441 19,441 Employee benefits payable - - 699 699 Payable towards expenses - - - - Retentions payable - - 670 670 There were no transfers between any levels during the year. Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual fund units that have a quoted price. The fair value of all equity instruments which are traded on the Stock Exchanges is valued using the closing price as at the reporting period. 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. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. The mutual fund units are valued using the closing net assets value. 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. Notes to the Financial Statements