171 a) Credit risk Credit risk is the risk of financial loss to the Group, if a customer or counterparty fails to meet its contractual obligations. Credit risk arises from cash and cash equivalents, financial assets measured at amortised cost or fair value through profit and loss and deposits with banks and financial institutions, as well as credit exposures to trade | non-trade customers including outstanding receivables. i) Credit risk management Credit risk is managed through the policy surrounding Credit Risk Management. ii) Provision for expected credit losses The Group provides for expected credit loss based on the following: Trade receivables Trade receivables consist of few customers, for which ongoing credit evaluation is performed on the financial condition of the account receivables. Historical experience of collecting receivables of the Group is supported by low level of past default and hence the credit risk is perceived to be low. b) Liquidity risk Ultimate responsibility for liquidity risk management rests with the Board of Directors, who has approved an appropriate liquidity risk management framework for short, medium and long term funding and liquidity management requirements of the Group. The Management monitors rolling forecasts of the liquidity position of the Group and cash and cash equivalents on the basis of expected cash flows and manages liquidity risk by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities. The following table shows the maturity analysis of financial liabilities of the Group based on contractually agreed undiscounted cash flows including contractual interest payment, as at the Balance Sheet date: (` lakhs) Contractual maturities of financial liabilities as at March 31, 2023 Less than 1 year More than 1 year Total Borrowings 1,038.62 2,439.99 3,478.61 Capital creditors 475.35 - 475.35 Trade payables 400.91 - 400.91 Security deposits payable 69.53 - 69.53 Employee benefits payable 39.92 - 39.92 (` lakhs) Contractual maturities of financial liabilities as at March 31, 2022 Less than 1 year More than 1 year Total Borrowings 1,112.31 4,020.64 5,132.95 Capital creditors 560.00 - 560.00 Trade payables 310.91 - 310.91 Security deposits payable 47.92 - 47.92 Employee benefits payable 32.66 - 32.66 Note 26.7 Financial risk management (continued)
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