284 SECTION 09 AL-`AQAR HEALTHCARE REIT NOTES TO THE FINANCIAL STATEMENTS 31 December 2025 22. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D) (c) Interest rate risk (cont’d) Sensitivity analysis for profit rate risk At the end of the reporting period, a change of 25 basis points (“bp”) in financing rates would have increased/ (decreased) profit before tax by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. Group Fund 2025 RM 2024 RM 2025 RM 2024 RM Financing rate - 25 bp decrease 2,522,641 1,764,307 2,522,641 1,760,929 - 25 bp increase (2,522,641) (1,764,307) (2,522,641) (1,760,929) (d) Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. It is not the Group’s policy to hedge foreign currency translation risk. The Group and the Fund also maintain bank accounts denominated in foreign currencies, primarily in AUD, as a natural hedge against foreign currency risk. The Group’s and the Fund’s exposure to foreign currency risk, based on carrying amounts of assets and liabilities as at the end of the reporting period was: Group Fund 2025 RM 2024 RM 2025 RM 2024 RM Denominated in AUD Trade receivables 30,576,882 30,715,412 - - Cash and cash equivalents 11,664,081 12,424,228 1,029,766 1,055,687 Net exposure in the statements of financial position 42,240,963 43,139,640 1,029,766 1,055,687
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