Page 185 - Tata_Chemicals_yearly-reports-2017-18

` in crore
Particulars As at 31 March, 2017
Fair value measurement using
Total Quoted prices in Significant Significant
active markets observable unobservable
(Level 1) inputs (Level 2) inputs (Level 3)
Assets measured at fair value:
Derivative financial assets
Cross currency interest rate swaps 6.70 - 6.70 -
FVTOCI financial investments
Quoted equity instruments 1,653.97 1,653.97 - -
Unquoted equity instruments 576.72 - - 576.72
FVTPL financial investments Integrated Report
Unquoted debt instruments 972.75 - - 972.75
Liabilities measured at fair value:
Derivative financial liabilities
Coupon only swaps 1.35 - 1.35 -
Foreign exchange forward contracts 20.72 - 20.72 -
Liabilities for which fair values are disclosed :
Borrowings:
Unsecured Non-convertible debentures 262.90 262.90 - -
There have been no transfers between levels during the period.
(c) The following tables shows a reconciliation from the opening balance to the closing balance for level 3 fair values.
` in crore
Particulars Total FVTOCI financial FVTPL financial FVTPL financial Statutory Reports
investments investments- Equity investments- Debt
Balance as at 1 April 2016 1,552.37 555.65 2.89 993.83
Addition / (Deletion) during the year (2.89) - (2.89) -
Add / (less): fair value through Other comprehensive income 21.07 21.07 - -
Add / (less): Foreign currency translation adjustment (21.08) - - (21.08)
Balance as at 31 March, 2017 1,549.47 576.72 - 972.75
Add / (less): fair value through Other comprehensive income 71.05 71.05 - -
Add / (less): Foreign currency translation adjustment 4.88 - - 4.88
Balance as at 31 March, 2018 1,625.40 647.77 - 977.63

(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 Financial Statements
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 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.
(iii) The Company enters into derivative financial instruments with various counterparties, principally banks. The fair value of derivative
financial instruments is based on observable market inputs including currency spot and forward rate, yield curves, currency
volatility, credit quality of counterparties, interest rate and forward rate curves of the underlying insturments etc. and use of
appropriate valuation models.
(iv) The fair value of non-current Borrowings carrying floating-rate of interest is not impacted due to interest rate changes, and will not
be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company
(since the date of inception of the loans).
(v) The fair values of the 10% unsecured redeemable non-convertible debenture (included in non-current borrowings) are derived
from quoted market prices. The Company has no other long-term borrowings with fixed-rate of interest.
Standalone Financial Statements 183