109 Note 27.6 Fair value measurements (continued) 1Includes investments in Bharuch Enviro Infrastructure Ltd (21,000 equity shares) and Narmada Clean Tech Ltd (4,06,686 equity shares), which are for operation purpose and the Company has to hold it till production at GIDC, Ankleshwar site continues. The Company estimates that the fair value of these investments are not materially different as compared to its cost. There were no transfers between any levels during the year. Level 1: This hierarchy includes financial instruments measured using quoted prices. The fair value of all equity instruments that 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 overthe-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 the remaining financial instruments is determined using discounted cash flowanalysis c) Valuation processes The Finance department of the Company 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 (` lakhs) Particulars As at March 31, 2022 As at March 31, 2021 Carrying amount | Fair value Carrying amount | Fair value Financial assets Security deposits for utilities and premises 22.66 37.35 Loans 2,202.00 - Sales tax paid under protest - 0.50 Total financial assets 2,224.66 37.85 Financial liabilities Borrowings 172.37 320.92 Lease liability - 0.87 Total financial liabilities 172.37 321.79
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