Page 331 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
STATEMENTS
REPORT
REPORTS
Consolidated

` in crore
As at March 31, 2021
Fair value measurement using
Particulars Quoted prices in Significant Significant
Total active markets observable unobservable
(Level 1) inputs (Level 2) inputs (Level 3)
Assets measured at fair value:
Derivative financial assets
Commodity swap 54.63 - 54.63 -
Forward contracts 7.20 - 7.20 -
FVTOCI financial investments
Quoted equity instruments 2,634.31 2,634.31 - -
Unquoted equity instruments 516.13 - - 516.13
FVTPL financial investments
Investment in mutual funds 1,563.49 - 1,563.49 -
Quoted debt instruments 150.00 150.00 - -
Liabilities measured at fair value:
Derivative financial liabilities
Forward contracts 2.42 - 2.42 -
Interest rate swaps 62.81 - 62.81 -
Commodity swap 1.65 - 1.65 -
(c) The following tables shows a reconciliation from the opening balance to the closing balance for level 3 fair
values.
` in crore
FVTOCI financial
Particulars
investments
Balance as at April 1, 2020 410.79
Addition / (deletion) during the year 39.60
Add / (less): Fair value changes through Other Comprehensive Income 65.74
Balance as at March 31, 2021 516.13
Addition / (deletion) during the year 114.65
Add / (less): Fair value changes through Other Comprehensive Income (11.83)
Balance as at March 31, 2022 618.95
(d) Valuation technique to determine fair value
The following methods and assumptions were used to estimate the fair values of financial instruments:
(i) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and
other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of
these instruments.
(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets. The
Investments measured at fair value (FVTOCI) and falling under fair value hierarchy Level 3 are valued on the basis of valuation
reports provided by external valuers with the exception of certain investments, where cost has been considered as an
appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best
estimate of fair values within that range.
The Group considers Comparable Companies Method (CCM) method and the illiquidity discount based on its assessment
of the judgement that market participants would apply for measurement of fair value of unquoted investments. In the CCM
method, the Group would find comparable listed entities in the market and use the same PE multiple (ranging from 6.70 to
19.88) for determining the fair value of the investment.

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