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Asia Media Group Berhad
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Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
116
24. Financial risk management objectives and policies (cont’d)
(a) Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments should a
counter party default on its obligations. The Group’s and the Company’s exposure to credit
risk arises primarily from trade and other receivables. For other financial assets (including
cash and bank balances), the Group and the Company minimise credit risk by limiting the
Group’s associations to business partners with high creditworthiness. Trade receivables
are monitored on an ongoing basis via the Group’s management reports.
Exposure to credit risk
Information regarding credit enhancements for trade and other receivables is disclosed in
Note 10 to the financial statements.
Credit risk concentration profile
The Group has no significant concentration of credit risk that may arise from exposure to
a single receivable or to a group of receivables.
Financial assets that are neither past due nor impaired
Information regarding trade receivables that are neither past due nor impaired is disclosed
in Note 10 to the financial statements.
Financial assets that are past due but not impaired and past due and impaired
Information regarding financial assets that are past due but not impaired and past due and
impaired are disclosed in Note 10 to the financial statements.
(b) Liquidity risk
Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting
financial obligations due to shortage of funds. The Group and Company manage their
debt maturity profile, operating cash flows and the availability of funding so as to ensure
that all refinancing, repayment and funding needs are met. As part of its overall liquidity
management, the Group and Company maintain sufficient levels of cash and deposits at
bank to meet their working capital requirements.
Financial liabilities
The Group’s and the Company’s remaining contractual maturity for their non-derivative
financial liabilities is due within one year from the end of the reporting period.