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217
annual
report
20
16-17
kajaria
ceramics
corporate
overview
management
reports
Financial
statements
(
`
in crores)
Carrying value
Fair value
As at
31- Mar- 2017
As at
3-Mar-2016
As at
1-Apr-2015
As at
31- Mar- 2017
As at
3-Mar-2016
As at
1-Apr-2015
Financial liabilities
Financial liabilities
measured at amortised
cost
Long term borrowings
115.50
142.11
96.40
115.50
142.11
96.40
Short term borrowings
55.08
110.49
133.91
55.08
110.49
133.91
Current maturities of long
term debt
42.58
41.06
21.40
42.58
41.06
21.40
Trade payables
292.10
292.78
253.00
292.10
292.78
253.00
Security deposits received
13.74
6.38
3.60
13.74
6.38
3.60
Interest bearing deposits
from customers
9.03
9.79
8.50
9.03
9.79
8.50
Creditors for capital
expenditures
28.76
41.70
35.71
28.76
41.70
35.71
Creditors for expenses
0.84
17.70
4.94
0.84
17.70
4.94
Oustanding liabilities
22.99
18.65
13.88
22.99
18.65
13.88
Other payables
1.51
1.23
0.94
1.51
1.23
0.94
Total
582.13
681.89
572.28
582.13
681.89
572.28
40. Fair values
(contd...)
The management assessed that fair value of short term financial assets and liabilities significantly approximate their carrying
amounts largely due to the short term maturities of these instruments. The fair value of the financial assets and liabilities is
included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other
than in a forced or liquidation sale.
The Company determines fair values of fianncial assets or liabilities by discounting the contractual cash inflows / outflows
using prevailing interest rates of financial instruments with similar terms. The initial measurement of financial assets and
financial liabilities is at fair value. The fair value of investments in mutual funds is determined using quoted net assets value
of the funds. Further, the subsequent measurements of all assets and liabilities (other then investments in mutual funds) is
at amortised cost, using effective interest rate method.
The following methods and assumptions were used to estimate the fair values:
- The fair value of the Company’s interest bearings borrowings are determined using discount rate that reflects the entity’s
discount rate at the end of the reporting period. The own non-performance risk as at the reporting period is assessed to
be insignificant.
- The fair value of unquoted instruments and other financial assets and liabilities is estimated by discounting future cash
flows using rates using rates currently applicable for debt on similar terms, credit risk and remaining maturities.
Notes on the consolidated financial statements
for the year ended 31 March 2017