Notes to Consolidated financial Con_Note34_Rev

34 Fair value measurement

i) Financial instruments by category

( In Crore)

31 March 2024

31 March 2023

Particulars

FVTPL

FVTOCI

Amortised Cost

FVTPL

FVTOCI

Amortised Cost

   

Financial assets

Investments

– Equity

3,152.58

2,275.02

– Bonds and debentures

1,439.04

3,552.98

– Government bonds and securities

367.70

845.85

– Certificate of Deposit

1,143.41

– Commercial Papers

195.39

– Fixed maturity plans

834.62

800.02

– Exchange traded funds

7,343.55

6,900.37

– Fixed deposits

1,851.59

1,400.00

– Short-term funds

4,715.75

4,219.25

– Liquid mutual funds

2,546.47

161.98

– Arbitrage Funds

819.59

Trade receivables

2,075.53

1,752.43

Loans

784.91

5.90

Other financial assets

775.62

617.45

Cash and cash equivalents

560.45

241.62

Other bank balances

394.87

448.86

8,081.81

3,152.58

16,623.27

4,381.23

2,275.02

17,708.89

   

Financial liabilities

Borrowings

1,785.90

Sales tax deferral

125.84

124.23

Trade payables

5,597.39

4,121.18

Other financial liabilities

597.03

464.09

8,106.16

4,709.50

   

ii)

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 financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Financial assets/liabilities measured at fair value – recurring fair value measurements At 31 March 2024

( In Crore)

Particulars

Notes

Level 1

Level 2

Level 3

Total

   

Financial investments at FVTPL

– Short-term funds

5

4,715.75

4,715.75

– Liquid mutual funds

5

2,546.47

2,546.47

– Arbitrage funds

5

819.59

819.59

Financial investments at FVTOCI

– Equity investment

5

2,895.46

257.12

3,152.58

10,977.27

257.12

11,234.39

   

Assets disclosed at fair value – At 31 March 2024

( In Crore)

Particulars

Notes

Level 1

Level 2

Level 3

Total

   

Investment property

3

225.38

225.38

   

Financial assets/liabilities measured at fair value – recurring fair value measurements At 31 March 2023

( In Crore)

Particulars

Notes

Level 1

Level 2

Level 3

Total

   

Financial investments at FVTPL

– Short-term mutual funds

5

4,219.25

4,219.25

– Liquid mutual funds

5

161.98

161.98

Financial investments at FVTOCI

– Equity investment

5

2,072.04

202.98

2,275.02

6,453.27

202.98

6,656.25

   

Assets disclosed at fair value – At 31 March 2023

( In Crore)

Particulars

Notes

Level 1

Level 2

Level 3

Total

   

Investment property

3

223.09

223.09

   

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets. Quotes would include rates/values/valuation references published periodically by BSE, NSE etc. basis which trades take place in a linked or unlinked active market. This includes traded bonds and mutual funds, as the case may be, that have quoted price/rate/value.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data (either directly as prices or indirectly derived from prices) 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.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Valuation Techniques used to determine fair value

Valuation Techniques used to determine fair value include

Open ended mutual funds at NAV’s/rates declared and/or quoted

iii) Fair value of financial assets and liabilities measured at amortised cost

( In Crore)

Particulars

31 March 2024

31 March 2023

Carrying Amount

Fair value

Carrying Amount

Fair value

   

Financial assets

Investments

Bonds and debentures

1,439.04

1,379.96

3,552.98

3,458.40

Government bonds and securities

367.70

352.92

845.85

811.01

Fixed maturity plans

834.62

823.27

800.02

778.99

Exchange traded funds

7,343.55

7,234.73

6,900.37

6,710.97

9,984.91

9,790.88

12,099.22

11,759.37

The carrying amounts of certificate of deposits, commercial papers, fixed deposits, trade receivables, trade payables, other financial assets/liabilities, loans and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature.