Al-`Aqar Healthcare REIT Annual Report 2024

FINANCIAL STATEMENT & OTHER INFORMATION SECTION 5 181 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 Al-`Aqar Healthcare REIT | Annual Report 2024 11. INVESTMENT IN SUBSIDIARIES Fund 2024 RM 2023 RM Unquoted shares, at cost 42,492,186 42,492,186 Less: Accumulated impairment losses (42,492,183) (42,492,183) Net carrying amount 3 3 The movement in the accumulated impairment losses is as follows: 2024 RM 2023 RM At 1 January 42,492,183 39,952,545 Allowance for impairment losses - 2,539,638 At 31 December 42,492,183 42,492,183 During the financial year, the Fund conducted a review of the recoverable amount of its investment in a subsidiary and the review led to recognition of an impairment loss of RMNil (2023: RM2,539,638), as the recoverable amount was higher than the carrying value. The recoverable amount was determined based on the Fund’s share of net assets in its subsidiary, which represents the Fund’s estimation of fair value less cost to sell of its subsidiary. Details of the subsidiaries are as follows: Name of subsidiaries Country of incorporation Principal activities Proportion of ownership interest and voting power held by the Group 2024 % 2023 % AL-`Aqar Capital Sdn Bhd (i) Malaysia Special purpose company for the purpose of raising Islamic Financing for the Fund 100 100 AL-`Aqar Australia Pty Ltd (ii) Australia Special purpose company for the purpose of acquisition of Australian property for the Fund 100 100 (i) Audited by Ernst & Young PLT (ii) Audited by a firm other than Ernst & Young PLT

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