166 AL-SALAM REIT 1. Corporate information (cont’d.) (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 RM2,461,404 (2021: RM2,477,759). (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 did not earn any acquisition fee for the current and previous financial year. (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 RM117,207 (2021: RM119,566). 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 2023. 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. As of 31 December 2022, the current liabilities of the Group and the Fund have exceeded the current assets by RM392,967,724 and RM394,162,719 respectively. The net current liabilities position are mainly derived from the Sukuk Ijarah of RM451,000,000 which will be due for repayment in August 2023 as disclosed in Note 17. The Manager believes that the Group will meet their short term obligation as and when they fall due on the basis that the Group will be able to refinance their borrowings when it matures. As at the reporting date, the Group received proposal fron financial institutions on the refinancing plan. As at the date of the financial statements, the Group is assessing the indicative issue term sheet and will finalise the refinancing plan by the maturity date in August 2023. Taking into consideration the viability of the refinancing plan, the Group is confident in materialising its refinancing plan before the maturity date. Accordingly, the Manager is of the opinion going concern basis used in the preparation of financial statements is appropriate. NOTES TO THE FINANCIAL STATEMENTS 31 December 2022 (cont’d.)
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