NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 20. Significant related party transactions Parties are considered to be related to the Group if the parties have the ability, directly or indirectly, to control the Group or exercise significant influence over the Group in making financial and operation decisions, or vice versa, or where the Group and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. The Group and the Fund derive all their rental income as disclosed in Note 4 from related parties. Significant related party charges/(credits) other than those disclosed in Note 4 are as follows: Group Fund 2022 2021 2022 2021 RM RM RM RM Manager’s fee 1,851,471 1,845,342 1,851,471 1,845,342 Maintenance fee 1,098,480 1,010,176 1,098,480 1,010,176 Other income (532,000) (532,000) (532,000) (532,000) Other income relates to the compensation received from Selangor Medical Centre Sdn Bhd for loss of opportunity and annual loss of potential income due to the deferment for the transfer of a Physician Consultant Building to the Fund. The related party transactions described above were entered into in the normal course of business and are based on negotiated and mutually agreed terms. 21. Operating leases - Group as lessor The Group and the Fund lease out their investment properties under operating leases. The future minimum lease receivable under non-cancellable leases are as follows: Group Fund 2022 2021 2022 2021 RM RM RM RM Less than one year 112,168,484 115,451,639 106,440,368 109,723,524 Between one and five years 348,147,381 446,089,551 317,741,852 422,480,505 460,315,865 561,541,190 424,182,220 532,204,029 22. Financial risk management objectives and policies The Group and the Fund are exposed to financial risks arising from their operations and the use of financial instruments. The key financial risks include credit risk, liquidity risk, financing rate risk and foreign currency risk. The Group and the Fund have taken measures to minimise their exposure to risks associated with their financing, investing and operating activities and operate within clearly defined guidelines as set out in the SC Guidelines. AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2022 184
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