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NOTES TO FINANCIAL STATEMENTS
(cont’d)
31 March 2016

30 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (cont’d)

Estimating the fair values (cont’d)

Non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal
and interest cash flows, discounted at the market rate of interest at reporting date.

Other financial assets and liabilities

The carrying amounts of financial assets and liabilities with a maturity of less than one year (including trade and
other receivables, cash and cash equivalents, other payables and accruals, and short-term borrowings) are
assumed to approximate their fair values. The fair values of other classes of financial assets and liabilities are
disclosed in the respective notes to financial statements.

Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have
been defined as follows:

• 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)

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs)

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