GSK_Annual_Report_2021

Notes to the Consolidated Financial Statements for the year ended March 31, 2021 (contd.) Annual Report 2020-21 211 (a) Financial instruments that are recognised and measured at fair value 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. Level 1 : It includes financial instruments measured using quoted prices Level 2 : The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data 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 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable (b) Fair value of financial assets and liabilities measured at amortised cost ( ` in lakhs) As at March 31, 2021 As at March 31, 2020 Financial assets Security Deposits Carrying value 8,06.08 8,21.56 Fair value 8,06.08 8,21.56 Margin money/ Deposit against bank guarantee Carrying value 4,01.47 4,13.53 Fair value 4,01.47 4,13.53 Financial liabilities Borrowings Carrying value 2.40 17.70 Fair value 2.40 17.70 Other financial lease liabilities Carrying value 34,60.26 41,66.30 Fair value 34,60.26 41,66.30 Security deposits received Carrying value 2,05.09 2,06.60 Fair value 2,05.09 2,06.60 The impact of fair valuation of the above Financial assets and liabilities is considered to be insignificant and hence carrying value and the fair value is considered to be same. The carrying amounts of Trade receivables, Cash and cash equivalents, Bank balances other than Cash and cash equivalents, Interest accrued on deposits with bank, Receivable from group companies, Advances recoverable, Payable to employees, Unclaimed Dividends, Trade payables, Creditors for capital goods, Rationalisation relating to a manufacturing site and Other Payables are considered to be the same as their fair values due to their short term nature.