116 / 142
Annual Report 2016
ASIA MEDIA GROUP Berhad
115
Notes to the Financial Statements
(continued)
23. Financial risk management objectives and policies
The Group and the Company are exposed to financial risks arising from their operations and
the use of financial instruments. The key financial risks include credit risk, liquidity risk, interest
rate risk and market price risk.
The Board of Directors reviews and agrees policies and procedures for the management of
these risks. The audit committee provides independent oversight to the effectiveness of the risk
management process.
It is, and has been throughout the current and previous financial year, the Group's policy that
no derivatives shall be undertaken.
The following sections provide details regarding the Group's and Company's exposure to the
above-mentioned financial risks and the objectives, policies and processes for the management
of these risks.
(a) Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments should a
counterparty 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 11 to the financial statements.
Credit risk concentration profile
The Group determines concentration of credit risk by monitoring the segment profits of
its trade receivables on an ongoing basis. As at 31 December 2016, the Group has a
receivable balances owing from a single customer. However, the said balances have been
fully settled subsequent to financial year end. The maximum exposure to credit risk for
the Group is represented by the carrying amount of each financial asset recognised in the
statement of financial position.
Financial assets that are neither past due nor impaired
Information regarding trade receivables that are neither past due nor impaired is disclosed
in Note 11 to the financial statements.