MAHINDRA & MAHINDRA LTD. Consolidated Accounts 413 Particulars Financial assets/ financial liabilities Fair Value Category Fair value Fair value hierarchy Valuation technique(s) Key inputs (for level 2 and level 3) Significant unobservable input(s) for level 3 hierarchy Relationship of unobservable inputs to fair value and sensitivity 2025 2024 5) Investment in preference shares Financial Assets Financial instrument measured at FVTPL - Non-current 0.08 208.44 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 key assumptions will result in increase or decrease in valuation 6) Investment in equity instruments - Quoted Financial Assets Financial instrument designated at FVTOCI - Non-current 162.26 203.11 Level 1 Quoted bid price in active market — — — Financial instrument designated at FVTOCI - Current 0.01 0.02 Level 1 Quoted bid price in active market — — — Financial instrument designated at FVTPL - Non-current 622.43 1,009.78 Level 1 Quoted bid price in active market — — — 7) Investment in equity instruments - Unquoted Financial Assets Financial instrument designated at FVTOCI - Non-current 39.26 41.64 Level 3 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, long term pre tax operating profit margin, WACC, Discount for lack market for respective equity instrument For Market Multiple approach - In this approach fair value is derived based on market multiples like PE multiple, Enterprise value (EV) multiple, Revenue Multiple etc. Financial projections including terminal growth rate, operating margins, etc and discount rates to discount future cash flows. Increase or decrease in key assumptions, multiples will result in increase or decrease in valuation. Financial instrument measured at FVTPL - Non-current 29.43 78.16 Level 3 Discounted Cash Flow approach 8) Investments in Infrastructure Investment Trust - Quoted Financial Assets Financial instrument measured at FVTPL - Non-current 366.06 360.98 Level 1 Quoted market price — — — 9) Investment in government securities - Quoted Financial Assets Financial instrument measured at FVTOCI - Non-current 2,511.03 4,012.12 Level 1 Quoted market price — — — Financial instrument measured at FVTOCI - Current 1,752.53 588.95 Level 1 Quoted market price — — — 10) Investment in mutual funds-Quoted Financial Assets Financial instrument measured at FVTPL - Current 14,241.83 7,821.71 Level 1 Net asset value — — — 39. Financial Instruments (Continued) Rupees crores
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