Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 136 31. Financial Instruments (cont’d) (b) Financial risk management objectives and policies (cont’d) (ii) Liquidity risk (cont’d) All financial liabilities of the Group and of the Company are assessed as current and correspondingly, no detailed maturity analysis is deemed necessary. (iii) Market risk (a) Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group has minimal currency transaction exposures. Such exposure mainly arises from cash and cash equivalents which are denominated in foreign currency. As such, the Group is not sensitive to foreign currency risk. (b) Interest rate risk The Group’s borrowings are exposed to a risk of change in their fair value due to changes in interest rates. The Group’s variable rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates. The Group manages its interest rate risk exposure from interest bearing borrowings by obtaining financing with the most favourable interest rates in themarket. The Group constantly monitors its interest rate risk by reviewing its debts portfolio to ensure favourable rates are obtained. The Group does not utilise interest swap contracts or other derivative instruments for trading or speculative purposes. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (cont’d)