b'102 Mercia Asset Management PLC Annual Report & Accounts 2022Notes to the consolidated financial statements continued28. Financial risk management continuedMarket risk continuedThe 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 2022 000 000 000 000 000Trade payables412 412Other payables4,991 4,991Deferred consideration (note 22) 2,1002,100Lease liabilities43 129 307 479 5,446 2,229 307 7,982Less 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 payables4,410 4,410Client money held 2,4842,484Deferred consideration (note 22) 2,100 2,100 4,200Lease liabilities34 103 372 5092,484 4,770 2,203 2,472 11,929Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. A default is defined as the failure to discharge a contractual obligation or commitment into which a counterparty has entered with the Group. The Group is exposed to this risk for various financial instruments; for example, by granting receivables to customers and from placing cash and deposits with banks. The Groups trade receivables are amounts due from the investment FuM, from those investee companies held by its managed funds and from its directly invested portfolio companies. The Groups maximum exposure to credit risk is limited to the carrying amount of trade receivables net of provisions, cash and cash equivalents and short-term liquidity investments as at 31 March, as summarised below:As at As at31 March 31 March2022 2021000 000Net trade receivables 348 314Other receivables 19367Cash at bank and in hand 56,049 54,491Short-term liquidity investments 5,235 23461,825 55,106The Directors consider that all of the above financial assets are of good credit quality. In respect of trade and other receivables, the Group is not exposed to significant risk as the principal customers are the investment funds managed by the Group and in these the Group has control of the banking as part of its management responsibilities. As at 31 March 2022, an amount of 318,000 (2021: 285,000) has been estimated as a loss allowance in accordance with IFRS 9.The credit risk of cash and cash equivalents and short-term liquidity investments held on deposit is limited by the use of reputable UK banks with high-quality external credit ratings and as such is considered negligible. All cash, cash equivalents and short-term liquidity investments are held with banks with an A long-term deposit rating as at the year ended 31 March 2022.Capital risk managementThe Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to shareholders through the optimisation of any debt and equity balance. The Board reviews the capital structure of the Group on a regular basis to ensure that it complies with all regulatory capital requirements.The capital structure of the Group consists solely of equity (comprising issued capital, reserves and retained earnings). The Group had no debt instruments during the year. In order to maintain or adjust the capital structure, the Group may return capital to shareholders, issue new shares, sell assets to manage cash or adjust the amount of dividends paid to shareholders.'