b'Notes to the consolidated financial statements continuedFor the year ended 31 March 202029. Financial risk management continuedThe Directors consider that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the financial statements approximate to their fair values.Financial instruments in Level 1As at 31 March 2020, the Group had one direct investment listed on AIM (Concepta); this has been classified in Level 1 and valued at its bid price as at 31 March 2020.Financial instruments in Level 3If one or more of the significant inputs required to fair value an instrument is not based on observable market data, the instrument is included in Level 3. Apart from the one investment classified in Level 1, all other investments held in the Groups direct investment portfolio have been classified in Level 3 in the fair value hierarchy and the individual valuations for each of the companies have been arrived at using appropriate valuation techniques.Up until 31 March 2019, the Group classified investments included in Level 3 under four valuation techniques, being price of recent funding round, cost, enterprise value and price of recent funding round or cost adjusted for impairment. From 1 April 2019, the Group has adopted the revised International Private Equity and Venture Capital Valuation Guidelines in its valuation techniques, which specify that the price of a recent investment represents one of a number of inputs used to arrive at fair value, and uses a single classification for all Level 3 investments.Note 2 to these consolidated financial statements provides further information on the Groups valuation methodology, including a detailed explanation of the valuation techniques used for Level 3 financial instruments. 30. Related party transactionsTransactions with DirectorsThe Group considers all members of the Board to be key management and their remuneration is disclosed in the Remuneration Report on page 67. Directors shareholdings in the Group are disclosed on page 68 of the Remuneration Report.The Group leases its head office premises from Forward Midland LLP, of which Ray Chamberlain, a Non-executive Director of Mercia Asset Management PLC, is a member. During the year ended 31 March 2020, and under the terms of a lease agreement which commenced on 18 December 2014 and terminates on 17 December 2024, rent and service charges amounting to 226,000 plus VAT (2019: 235,000 plus VAT) were invoiced to and paid in full by the Group. The rent charged was determined by an independent market rent valuation of the property, undertaken in October 2014. Rent and service charges are invoiced quarterly in advance. As at 31 March 2020, prepaid rent and service charges amounted to 52,000 plus VAT (2019: 52,000 plus VAT).31. Ultimate controlling partyThe Group has no single ultimate controlling party.32. Post balance sheet eventsThe impact of the outbreak and continuing spread of the novel coronavirus (COVID-19) is continuing to evolve. The Group is continually monitoring the development of COVID-19 and the current and future impacts it will have on the business. The actions to mitigate these risks have been noted in the Principal Risks and Uncertainties section on pages 52 to 55 of this Annual Report. As discussed in the Strategic Report, at this time, the Directors are not able to reliably estimate the length and severity of the COVID-19 public health crisis and, as such, cannot quantify its impact on the financial results, liquidity and capital resources of the Group and its operations in future periods.Other than the sale of The Native Antigen Company for up to 5.2million and the continuing completion of approved direct investments, there have been no other material events since the balance sheet date.100 Mercia Asset Management PLCAnnual Report and Accounts 2020'