MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2022-23

371 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS 36. Financial Instruments (contd.) (e) Fair Value Disclosures (contd.) (i) Financial Instruments regularly measured using fair value - recurring items (contd.) Rupees crores Financial assets/ financial liabilities Financial assets/ financial liabilities Fair Value 2023 2022 Fair value hierarchy Valuation technique(s) Key inputs Significant unobservable input(s) for level 3 hierarchy Relationship of unobservable inputs to fair value and sensitivity 8) Investment in debt instruments - Government Securities Financial Assets Financial instrument measured at FVTOCI 4,896.57 4,490.95 Level 1 Quoted market price — — — 9) Investment in debt instruments - Debentures/Bonds/ Preference shares, etc Financial Assets Financial instrument measured at FVTOCI 377.87 293.13 Level 1 Quoted market price — — — Financial instrument measured at FVTPL 100.53 — Level 1 Quoted market price — — — Financial instrument measured at FVTPL 68.99 70.13 Level 3 Income Approach - Discounted Cash Flow For Discounted Cash Flow approach - The discounted cash flow method used to capture the present value of the expected future economic benefits to be derived from the ownership of these investees. The key inputs includes, long term revenue growth rates, balance sheets, statement of profit and loss along with underlying assumptions. Interest rates to discount future cash flow, financial projections Increase or decrease in multiple will result in increase or decrease in valuation 10) Investment in Other financial instruments -CP, CD Financial Assets Financial instrument measured at FVTOCI 2,316.59 852.20 Level 1 Market price — — — Financial Assets Financial instrument measured at FVTPL 2,067.14 — Level 1 Market price — — — 11) Convertible Preference shares Financial Liabilities Financial Instruments measured at FVTPL (400.00) — Level 3 Income Approach - Discounted Cash Flow/ Market Multiple approach For Discounted Cash Flow approach - The discounted cash flow method used to capture the present value of the expected future economic benefits to be derived from the ownership of these investees. The key inputs includes, long term revenue growth rates, balance sheets, statement of profit and loss along with underlying assumptions. For Market Multiple approach - In this approach fair value is derived based on market multiples like Revenue multiple, etc.. Interest rates to discount future cashflows, financial projections Market multiples used for benchmarking. Increase or decrease in key assumptions, multiples will result in increase or decrease in valuation.