22. Financial risk management objectives and policies (Cont’d) (b) Liquidity risk (Cont’d) Maturity analysis (Cont’d) The table below summarises the maturity profile of the Group’s and the Fund’s financial liabilities as at the reporting date based on undiscounted contractual payments (Cont’d): Weighted average On demand effective Carrying Contractual or within Within profit rate amount cash flows 1 year 2 to 5 years % RM RM RM RM Group 31 December 2024 Non-profit bearing financial liabilities: Other payables and accrued expenses - 25,348,506 25,348,506 19,745,664 5,602,842 Profit bearing financial liabilities: Variable profit rate instruments - Islamic financing 5.97 639,615,399 747,843,300 124,265,800 623,577,500 Fund 31 December 2024 Non-profit bearing financial liabilities: Other payables and accrued expenses - 22,491,609 22,491,609 16,888,767 5,602,842 Profit bearing financial liabilities: Variable profit rate instruments - Islamic financing 5.37 187,455,666 333,483,600 124,265,800 209,217,800 Amount owing to a subsidiary 6.11 448,837,893 538,401,500 - 538,401,500 (c) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of the Group’s and the Fund’s financial instruments will fluctuate because of changes in the market interest rates. The Group and the Fund manage their interest rate exposure by maintaining matching their cash flows from rental income and fixed rate profit bearing deposits with the Group’s and the Fund’s variable rate profit bearing Islamic financing. The Group and the Fund place cash deposits on a short-term basis and therefore allows the Group and the Fund to respond to significant changes of interest rate promptly. Notes to the Financial Statements - 31 December 2024 234 AL-SALĀM REIT ANNUAL REPORT 2024
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