70 Management of credit risk Based on the financial transaction, credit risk is minimised. High rated banks | institutions are accepted for placing FD or taking LC from customers. Customer credit limits are regularly monitored. (b) Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. The Company funding is through initial equity contribution and its retained earnings, and the Company has not availed credit facilities from any bank or financials institution. Financing The Company has not availed any credit facilities from banks and financial institutions. Management of liquidity risk Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company manages liquidity by ensuring that it will have sufficient funds to meet its liabilities when due, without incurring unacceptable losses. In doing this, the Management considers both normal and stressed conditions. A material and sustained shortfall in cash flow can undermine the credit rating and impair investor confidence of the Company. (` lakhs) Contractual maturities of financial liabilities as at March 31, 2020 Less than 12 months More than 12 months Total Finance lease obligations - 120.24 120.24 Security deposits 160.60 - 160.60 Creditor for capital goods 7.86 - 7.86 Short-term borrowings 19.70 - 19.70 Others 3.79 - 3.79 Employee benefits payable 40.75 - 40.75 Trade payables 1,047.59 - 1,047.59 Total financial liabilities 1,280.29 120.24 1,400.53 Contractual maturities of financial liabilities as at March 31, 2019 Less than 12 months More than 12 months Total Finance lease obligations 4.83 128.20 133.04 Security deposits 160.93 - 160.93 Short-term borrowings 19.70 - 19.70 Others 3.61 - 3.61 Employee benefits payable 40.75 - 40.75 Trade payables 956.87 - 956.87 Total financial liabilities 1,186.70 128.20 1,314.90
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