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ASIA MEDIA GROUP Berhad
Annual Report 2016
116
Notes to the Financial Statements
(continued)
23. Financial risk management objectives and policies (cont’d)
(a) Credit risk (cont’d)
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 11 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.
(c) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group's and the
Company's financial instruments will fluctuate because of changes in market interest rates.
The Group’s exposure to interest rate risk is minimised, as the Group do not have any
significant loans and borrowings, other than finance lease obligations, term loan and bank
borrowings which bear interest at fixed rates.
The investment in financial assets are mainly short term in nature and they are not held
for speculative purposes but have been mostly placed in fixed deposits which yield better
returns than cash at bank. As such, no sensitivity analysis of interest risk has been disclosed
in the financial statements.
(d) Market price risk
Market price risk is the risk that the fair value or future cash flows of the Group's or the
Company’s financial instruments will fluctuate because of changes in market prices (other
than interest or exchange rates).
The Group and the Company are not exposed to market price risk as they do not have
any investment in quoted equity instruments.