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Given below is the summary of financial assets as categorised in IAS 39:
Particulars 31 March 2011
Non-current assets
Available - for - sale 2.68
Held - to - maturity 278.58
281.26
Current assets
Available - for - sale -
Loans and receivables (including Cash and cash equivalents) 17,229.51
NOTE AA - OTHER FINANCIAL LIABILITIES
Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs.
The management consider that the carrying amount of trade payables approximates to their fair value.
Given below is the summary of financial liabilities as categorised in IAS 39:
Particulars 31 March 2011
Non-current liabilities
Borrowings:
Financial liabilities at amortised cost 6,202.49
Current liabilities
Borrowings:
Financial liabilities at amortised cost 14,913.96
Trade and other payables:
Financial liabilities at amortised cost 7,493.94
NOTE BB - FAIR VALUE HIERARCHY
The following table presents financial assets and liabilities measured at fair value in the statement of financial position in
accordance with the fair value hierarchy. This hierarchy groups financial assets and liabilities into three levels based on the
significance of inputs used in measuring the fair value of the financial assets and liabilities. The fair value hierarchy has
the following levels:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
- Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices); and
- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The level within which the financial asset or liability is classified is determined based on the lowest level of significant input
to the fair value measurement. The financial assets and liabilities measured at fair value in the Consolidated statement of
financial position are grouped into the fair value hierarchy as follows:
Particulars Level 1 Level 2 Level 3 Total
Assets
Available - for - sale financial assets – Investment
in unlisted securities - - 2.64 2.64
Liabilities - - - -
Measurement of fair value
The methods and valuation techniques used for the purpose of measuring fair value are unchanged from the previous year.
Investments in unlisted securities
The fair value of the investment cannot be determined as there are no quoted market prices at the reporting date for
unlisted securities and hence they have been valued at cost. Such investments have been categorised in Level 3.
NOTE CC - RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group is exposed to a variety of financial risks which results from the Group’s operating and investing activities. The
Group’s risk management is co-ordinated by its parent company, in close co-operation with the board of directors and the
core management team of the subsidiaries, and focuses on actively securing the Group’s short to medium term cash flows
by minimising the exposure to financial markets.
The Group does not actively engage in the trading of financial assets for speculative purposes nor does it write options.
Financial assets that potentially subject the Group to concentrations of credit risk consist principally of cash equivalents,
accounts receivables, other receivables, investment securities and deposits. By their nature, all such financial instruments
involve risk including the credit risk of non-performance by counter parties.
The Group’s cash equivalents and deposits are invested with banks.
104 GLENMARK PHARMACEUTICALS LIMITED