FINANCIAL STATEMENT & OTHER INFORMATION SECTION 5 193 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 Al-`Aqar Healthcare REIT | Annual Report 2024 22. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D) (b) Liquidity risk Analysis of financial instruments by remaining contractual maturities On demand or within one year RM One to five years RM More than five years RM Total RM Fund As at 31 December 2024 Financial liabilities Other payables 8,911,581 1,116,129 12,381,954 22,409,664 Islamic financing 143,038,713 697,609,436 - 840,648,149 151,950,294 698,725,565 12,381,954 863,057,813 As at 31 December 2023 Financial liabilities Other payables 9,277,427 1,869,586 12,381,954 23,528,967 Islamic financing 116,478,003 760,143,749 - 876,621,752 125,755,430 762,013,335 12,381,954 900,150,719 (c) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of the Group’s and of the Fund’s financial instruments will fluctuate because of changes in the market interest rates. The Group and the Fund manage their financing rate exposure by maintaining a prudent mix of fixed and floating rate of borrowings. The Group and the Fund place cash deposits on short-term basis and therefore this allows the Group and the Fund to respond to significant changes of financing rate promptly. The interest rate mentioned below will have an impact on the management of the Group and the Fund, regardless of whether it is an Islamic fund or otherwise. It does not in any way suggest that the Group and the Fund will invest in conventional financial instruments. All the investments and placements carried out for the Group and the Fund are in accordance with Shariah requirements.
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