Heritage Foods Limited | 30th Annual Report 2021-22

30 th Annual Report 2021-22 Heritage Foods Limited 224 (iii) Reconciliation of level 3 fair value measurement: Amount As at 1 April 2020 2.60 Changes during the year - As at 31 March 2021 2.60 Changes during the year - As at 31 March 2022 2.60 38. Categories of Financial instruments and their fair values The carrying amount of all financial assets and financial liabilities appearing in the financial statements are reasonable approximation of their fair values, except for deferred payment liabilities whose fair value amounts to ` 33.82 and ` 46.36 as on 31 March 2022 and 31 March 2021 respectively. Categories of financial instruments Particulars As at 31 March 2022 As at 31 March 2021 FVTPL FVTOCI Amortised cost FVTPL FVTOCI Amortised cost Financial assets Quoted equity shares - 0.20 - - 0.13 - Unquoted equity shares - 2.60 - - 2.60 - Investment in government securities - - 0.16 - - 0.16 Trade receivables - - 184.80 - - 152.20 Cash and cash equivalents - - 331.11 - - 218.26 Other bank balances - - 25.01 - - 17.30 Loans - - 0.91 - - 8.90 Other financial assets - - 100.66 - - 86.85 - 2.80 642.65 - 2.73 483.67 Particulars As at 31 March 2022 As at 31 March 2021 FVTPL FVTOCI Amortised cost FVTPL FVTOCI Amortised cost Financial liabilities Borrowings - - 79.69 - - 585.86 Lease liabilities - - 75.36 - - 44.87 Deferred payment liabilities - - 37.47 - - 53.47 Trade payables - - 518.68 - - 354.59 Other financial liabilities - - 1,042.15 - - 1,203.11 - - 1,753.35 - - 2,241.90 The fair value of the financial assets and financial liabilities are included at an amount at which the instruments could be exchanged in a current transaction between the willing parties, other than in a forced or liquidation sale. 39. Financial risk management objectives and policies Financial Risk Management Framework The Group’s Board of Directors has an overall responsibility for the establishment and oversight of the Group’s risk management framework. The Holding Company’s Board of Directors has established Risk Management Committee, which is responsible for developing and monitoring the risk management policies. The Committee reports regularly to the Holding Company’s Board of Directors on its activities. The Group’s principal financial liabilities comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Group’s operations. The Group’s principal financial assets include investments in equity shares, loans, trade and other receivables, and cash and cash equivalents that the Group derives directly from its operations. Summary of the significant accounting policies and other explanatory information (All amounts in ` millions, except share data and where otherwise stated)