72 Financing The Company has not availed any credit facility 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, 2022 Less than 12 months More than 12 months Total Finance lease obligations - 114.77 114.77 Security deposits 166.12 - 166.12 Creditor for capital goods 5.44 - 5.44 Others 47.53 - 47.53 Employee benefits payable 122.99 4.11 127.10 Trade payables 1,098.59 - 1,098.59 Total financial liabilities 1,440.67 118.88 1,559.55 Contractual maturities of financial liabilities as at March 31, 2021 Less than 12 months More than 12 months Total Finance lease obligations 5.47 122.43 127.90 Security deposits 166.24 - 166.24 Creditor for capital goods 4.58 - 4.58 Others 22.93 - 22.93 Employee benefits payable 90.69 - 90.69 Trade payables 1,368.25 - 1,368.25 Total financial liabilities 1,658.16 122.43 1,780.59 (c) Foreign currency risk The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to Euro. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the functional currency (`) of the Company. The risk is measured through a forecast of highly probable foreign currency cash flows. The above risks may affect the income and expenses of the Company or the value of its financial instruments. The objective of management of market risk of the Company is to maintain this risk within acceptable parameters, while optimising returns. The exposure of the Company to these risks is explained as follows:
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