Al-`Aqar Healthcare REIT Annual Report 2019

06 FINANCIAL STATEMENT 156 Amount due from a subsidiary The Fund provides unsecured advances to the subsidiary. The Fund monitors the results of the subsidiary regularly. As at the end of the reporting period, the maximum exposure to credit risk was represented by their carrying amounts in the statements of financial position. (b) Liquidity Risk Liquidity risk is the risk that the Group and the Fund will encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s and the Fund’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group’s and the Fund’s objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities. The Group and the Fund manage their operating cash flows and the availability of funding so as to ensure that refinancing, repayment and funding needs are met. As part of their overall liquidity management, the Group and the Fund maintain sufficient levels of cash and bank balances to meet their working capital requirements. The Murabahah Tawarruq will be due in May 2020 as disclosed in Note 17. The Manager believes that the Group and the Fund will meet their short term obligation as and when they fall due based on the assumption that the Group and the Fund will be able to refinance the Murabahah Tawarruq when it matures. The Manager is currently planning to undertake a private placement in May 2020 to redeem the said facility. Notes To The Financial Statements For The Financial Year Ended 31 December 2019 (Continued) 23. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIESS (CONTINUED) (a) Credit Risk (Continued) Impairment of financial assets (Continued)