121 a) Fair value hierarchy This section explains the judgements and estimates made in determining the fair values of the financial instruments that are: a) recognised and measured at fair value and b) measured at amortised cost and for which fair values are disclosed in the Standalone Financial Statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed in the Indian Accounting Standard. An explanation of each level follows underneath the table: (` lakhs) i) Financial assets and liabilities measured at fair value as at March 31, 2024 Level 1 Level 2 Level 3 Total Financial assets Financial investments measured at FVTPL: Unquoted equity shares1 - - 42.77 42.77 Mutual funds at FVTPL - 30.02 - 30.02 Total financial assets - 30.02 42.77 72.79 (` lakhs) ii) Financial assets and liabilities measured at fair value as at March 31, 2023 Level 1 Level 2 Level 3 Total Financial assets Financial investments measured at FVTPL: Unquoted equity shares1 - - 42.77 42.77 Total financial assets - - 42.77 42.77 1Includes investments in BEIL Infrastructure Ltd (21,000 equity shares) and Narmada Clean Tech (4,06,686 equity shares), which are for operation purposes 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 over-the-counter derivatives) is determined using valuation techniques, which maximise the use of observable market data and minimise the reliance 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. Note 29.6 Fair value measurements (continued)
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