Events 2005 - ChartNexus

Notes to the Financial Statements 31 December 2005
1. GENERAL INFORMATION
The Company is a public limited liability company, incorporated and domiciled in Malaysia and listed on the Main Board of Bursa
Malaysia Securities Berhad.
The registered office of the Company is located at Level 15, Menara Star, 15, Jalan 16/11, 46350 Petaling Jaya.
The principal place of business of the Company is located at Menara Star, 15, Jalan 16/11, 46350 Petaling Jaya.
The financial statements are presented in Ringgit Malaysia.
2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s activities expose it to a variety of financial risks, including foreign currency exchange risk, interest rate risk, credit risk,
liquidity and cash flow risk.
The Group’s overall financial risk management objective is to ensure that the Group creates value for its shareholders. The Group
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance
of the Group. Financial risk management is carried out through risk reviews, internal control systems, a global insurance
programme and adherence to Group financial risk management policies. The Board regularly reviews these risks and approves the
treasury policies, which covers the management of these risks.
The Group uses derivative financial instruments such as foreign exchange contracts and interest rate swaps contracts to hedge
certain exposures. It does not trade in financial instruments.
Foreign currency exchange risk
The Group is exposed to currency risk as a result of the Group’s transaction with foreign trade receivables and trade payables. The
Group monitors the movement in foreign currency exchange rate closely to ensure their exposures are minimised. The Company
uses derivative financial instruments such as foreign exchange contracts to hedge certain exposure.
Interest rate risk
The Group’s income and operating cash flows are substantially independent of changes in market interest rates. Interest rate
exposure arises from the Group’s borrowings and deposits, and is managed through the use of fixed and floating rate debts. The
Company uses derivative financial instruments such as interest rate swaps contracts to hedge certain exposure.
Credit risk
Credit risk arises when derivative instruments are used or sales made on deferred credit terms. The Group seeks to invest cash
assets safely and profitably. It also seeks to control credit risk by setting counterparty limits and ensuring that sales of products
and services are made to customers with an appropriate credit history. The Group considers the risk of material loss in the event
of non-performance by a financial counterparty to be unlikely.
STAR PUBLICATIONS
(MALAYSIA) BERHAD
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