Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 134 31. Financial Instruments (cont’d) (a) Classification of financial instruments (cont’d ) Other financial liabilities at Loans and amortised receivables cost Total Company RM RM RM 2016 Financial Liabilities Other payables - 115,023 115,023 Amount due to a subsidiary company - 2,184,861 2,184,861 Amount due to a Director - 2 2 - 2,299,886 2,299,886 (b) Financial risk management objectives and policies The Group’s financial risk management policy is to ensure that adequate financial resources are available for the development of the Group operations whilst managing its financial risks, including credit, liquidity, foreign currency, interest rate and market price risks. The Group operates within clearly defined guidelines that are approved by the Board and the Group’s policy is not to engage in speculative transactions. The following sections provide details regarding the Group’s exposure to the above-mentioned financial risks and the objectives, policies and processes for the management of these risks. (i) Credit risk Credit risk is the risk of a financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group’s exposure to credit risk arises principally from its receivables from customers and deposits with banks and financial institutions. The Company’s exposure to credit risk arises principally from loans and advances to subsidiary companies and financial guarantees given to banks for credit facilities granted to subsidiary companies. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (cont’d)