1. Corporate information (cont'd.) The Fund has entered into several service agreements in relation to the management of the Fund and its property operations. The fees structure of these services is as follows: (a) Property manager's fees Under a Property Management Agreement dated between the Fund, the Manager and Exastrata Solution Sdn Bhd (the “Property Manager”), the Property Manager is entitled to receive property manager’s fees. The property manager’s fee for the current financial year is RM467,400 (2020: RM483,915). (b) Manager's fees Pursuant to the Deed dated 25 November 2019, the Manager is entitled to receive the following fees from the Fund: (i) A base management fee of up to 1% per annum of total asset value (excluding cash and bank balances) of the Fund calculated on a monthly accrual basis. The Manager’s base management fee for the current financial year is RM2,477,759 (2020: RM2,323,291). (ii) An acquisition fee of 1% of the transaction value (being the total purchase price) of any investment property directly or indirectly acquired from time to time by the Trustee for and on behalf of the Fund pro-rated, if applicable, to the proportion of the Fund’s interest and payable to the Manager upon completion of the acquisition of the investment property. The Manager’s acquisition fee for the current financial year is RMNil (2020: RM283,200). (iii) A disposal fee of 0.5% of the transaction value (being the total sales price) of any investment property directly or indirectly sold from time to time by the Trustees for and on behalf of the Fund pro-rated, if applicable, to the proportion of the Fund’s interest and payable to the Manager upon completion of the disposal of the investment property. The Manager did not earn any disposal fee for the current and previous financial year. (c) Trustee's fees Pursuant to the Deed dated 25 November 2019, the Trustee is entitled to receive a fee of up to 0.02% per annum of the net asset value of the Fund, calculated based on the monthly accrual basis and payable monthly in arrears. The Trustee’s fees for the current financial year is RM119,566 (2020: RM124,660). The financial statements of the Group and of the Fund were authorised by the Board of Directors of the Manager for issuance on 24 February 2022. 2. Significant accounting policies 2.1 Basis of preparation The financial statements of the Group and of the Fund have been prepared in accordance with the applicable provisions of the Restated Trust Deed dated 25 November 2019, Malaysian Financial Reporting Standards (“MFRS”) and International Financial Reporting Standards. These financial statements also comply with the applicable disclosure provisions of the Listing Requirements of Bursa Malaysia Securities Berhad. The financial statements of the Group and the Fund are prepared under the historical cost basis except for investment properties and applicable financial instruments that have been measured at their fair values. The financial statements are presented in Ringgit Malaysia ("RM") except when otherwise stated. A L - S A L Ā M R E I T A N N U A L R E P O R T 2 0 2 1 142 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2021 (CONT’D)
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