Amal Ltd | Annual Report 2022-23 d) Fair value of financial assets and liabilities measured at amortised cost (` lakhs) Particulars As at March 31, 2023 As at March 31, 2022 Carrying amount | Fair value Carrying amount | Fair value Financial assets Security deposits for utilities and premises 144.51 22.66 Loans 1,699.00 2,202.00 Total financial assets 1,843.51 2,224.66 Financial liabilities Borrowings 0.62 172.37 Total financial liabilities 0.62 172.37 The carrying amounts of trade receivables, bank deposits with less than 12 months maturity, cash and cash equivalents, other receivables, trade payables, employee benefits payable, payable towards expenses and retention are considered to be the same as their fair values due to the current and short-term nature of such balances. 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. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values. Note 27.7 Financial risk management The business activities of the Company are exposed to a variety of financial risks, namely liquidity risk, market risk and credit risk. Responsibility for the establishment and oversight of the risk management framework lies with the Senior Management of the Company. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the risk management policies of the Company. The key risks and mitigating actions are also placed before the Audit Committee of the Company. The 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 activities of the Company. Note 27.6 Fair value measurements (continued)
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