Page 255 - Tata_Chemicals_yearly-reports-2017-18

(b) Fair value hierarchy
` in crore
Particulars As at 31 March, 2017
Total Quoted Significant Significant
prices in observable unobservable
active markets inputs inputs
(Level 1) (Level 2) (Level 3)
Assets measured at fair value:
Derivative financial assets
Cross currency interest rate swaps 6.70 - 6.70 -
Commodity futures 10.74 - 10.74 -
Interest rate swaps 7.38 - 7.38 -
Forward contracts 3.43 - 3.43 - Integrated Report

FVTOCI financial investments
Quoted equity instruments 1,679.28 1,679.28 - -
Unquoted equity instruments 595.42 - 18.29 577.13
FVTPL financial investments
Investment in mutual funds 220.52 - 220.52 -
Liabilities measured at fair value:
Derivative financial liabilities
Cross currency interest rate swaps 1.35 - 1.35 -
Forward contracts 25.42 - 25.42 -
Interest rate swaps 11.84 - 11.84 -
Commodity futures 8.49 - 8.49 -
Liabilities for which fair values are disclosed : Statutory Reports
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 FVTPL financial
financial investments-
investments Equity
Balance as at 1 April 2016 558.95 556.06 2.89
Addition / (deletion) during the year (2.89) - (2.89)
Add / (less): Fair value through Other comprehensive income 21.07 21.07 -
Balance as at 31 March, 2017 577.13 577.13 - Financial Statements
Addition / (deletion) during the year (14.91) (14.91) -
Add / (less): Fair value through Other comprehensive income 89.34 89.34 -
Balance as at 31 March, 2018 651.56 651.56 -

(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 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.
Consolidated Financial Statements 253