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• Annual Report 2018-19
Shaping the future of software driven business
Notes forming part of consolidated financial statements (Contd.)
Note:
The Parent Company benefits from the tax holidays available for units set up under the Special Economic Zone Act, 2005.
These tax holidays are available for a period of fifteen years from the date of commencement of operation. Under the SEZ
Scheme, the Unit which begins providing services on or after April 1, 2005 will be eligible for deduction of 100% of profits or
gains derived from export of services for the first five years from the financial year in which the unit commenced the provision
of services, 50% of such profits or gains for a further period of five years. Upto 50% of such profits and gains is also available
for the further period of five years subject to creation of a Special Economic Zone re-investment Reserve out of the profit for
the eligible SEZ units and utilization of such reserve by the Company for acquiring new plant and machinery for the purpose of
its business as per the provisions of the Income Tax Act, 1961.
33. Financial assets and liabilities
The carrying values and fair values of financial instruments by categories are as follows:
In
`
Million
Financial assets /
financial liabilities
Basis of
measurement
As at March 31, 2019
As at March 31, 2018
Fair value
hierarchy
Carrying
value
Fair value
Carrying
value
Fair value
Assets:
Investments in associates (net)
Equity accounting
-
-
-
-
Investments in equity
instruments, preferred stock and
convertible notes
Fair value
214.12
214.12
77.44
77.44
Level 3
Investments in bonds*
Amortised cost
2,156.68 2,120.86
1,146.11
1,139.71
Investments in mutual funds
Fair value
5,270.44 5,270.44
7,573.80
7,573.80
Level 1
Loans
Amortised cost
171.87
171.87
149.36
149.36
Deposit with banks and
financial institutions
Amortised cost
5,592.38 5,592.38
2,122.27
2,122.27
Cash and cash equivalents
(including unpaid dividend)
Amortised cost
1,741.72
1,741.72
1,345.13
1,345.13
Trade receivables (net)
Amortised cost
4,923.01 4,923.01
4,847.40
4,847.40
Forward contracts receivables
Fair value
281.27
281.27
42.75
42.75
Level 2
Unbilled revenue
Amortised cost
1,834.76 1,834.76
1,699.50
1,699.50
Total
22,186.25 22,150.43
19,003.76
18,997.36
Liabilities:
Borrowings
(including accrued interest)
Amortised cost
16.72
16.72
21.91
21.91
Trade payables and
deferred payment liabilities
Amortised cost
1,517.07
1,517.07
1,673.08
1,673.08
Other financial liabilities
(excluding borrowings)
Amortised cost
437.18
437.18
390.97
390.97
Total
1,970.97
1,970.97
2,085.96
2,085.96
* Includes interest accrued
Fair value hierarchy
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable
or unobservable and consists of the following three levels:
Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 — Inputs are 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).