b'Mercia Asset Management PLC107Annual Report and Accounts 2021Financial risk management objectivesThe Groups main objective in using financial instruments is to create, fund and develop technology businesses through the raising and investing of capital for this purpose. The Groups policies in calculating the nature, amount and timing of investments are determined by forecast future investment activity. Financial risks are usually grouped by risk type, being: market, liquidity and credit risk. These risks are identified more fully below.Market riskPrice riskThe Group is exposed to price risk in respect of equity rights and equity investments held by the Group and classified on the balance sheet at fair value through profit or loss. The Group seeks to manage this risk exposure, while optimising the return on risk, by routinely monitoring the performance of these investments, employing stringent investment appraisal processes. Unquoted equity investments are valued in line with the Groups accounting policy as outlined in note 1 to these consolidated financial statements. Regular reviews of the financial results, combined with close contact with the management of these investments, provide sufficient information to support these valuations and regular reports are made to the Board on the status and valuation of investments.Interest rate riskThe Group holds no interest-bearing borrowing and, as such, has fully mitigated such a risk.Liquidity risk Strategic report GovernanceCash and cash equivalents include cash in hand and deposits held with UK banks with original maturities of less than three months.Short-term liquidity investments comprise deposits with a maturity of over three months but less than 12 months, also with UKbanks.Ultimate responsibility for liquidity risk management rests with the Directors, who have established an appropriate liquidity risk management framework for the management of the Groups short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate cash reserves, by continuously monitoring forecast andFinancial statementsactual cash flows and by matching the maturity profiles of financial assets and liabilities.The maturity profile of the Groups financial liabilities based on contractual undiscounted payments is as follows.Less than 3 on demand months 3 to 12 months 1 to 5 years totalas at 31 March 2021 000 000 000 000 000Trade payables326 326Other payables4,650 4,650Client money held 2,4842,484Deferred consideration (note 24) 2,100 2,100 4,200Lease liabilities34 103 372 5092,484 5,010 2,203 2,472 12,169Less than 3 On demand months 3 to 12 months 1 to 5 years TotalAs at 31 March 2020 000 000 000 000 000Trade payables729 729Other payables3,134 3,134Client money held 467467Deferred consideration (note 24) 2,100 4,200 6,300Lease liabilities34 103 509 646467 3,897 2,203 4,709 11,276'