Page 240 - EXIM-Bank_Annual-Report-2023

EXIM BANk MALAySIA
238 A Vision to Serve Empowering Growth Management Discussion and Analysis
ANNUAL REPORT 2023
Notes to the fiNaNcial statemeNts

45. ISLAMIC BuSINESS FuNDS (cont’d)
Notes to the financial statements for Islamic business fund and Takaful fund for the financial year ended 31 December 2023
(cont’d)
(k) Takaful participants fund (cont’d)
The deficit in the Takaful participant fund is covered by the Qard from Shareholders’ funds. Qard represents a benevolent
financing to the Takaful participants fund to make good any underwriting deficit experienced during a financial period.
The amount is unsecured, not subject to any profit elements and has no fixed terms of repayment. The management
expects to recover the balance from future profits of Takaful participants fund.

Measurement and impairment of Qard
Any deficit in the Takaful fund is made good via a benevolent financing, or Qard, granted by the Islamic business fund.
Qard is stated at cost less any accumulated impairment losses in the Islamic business fund. In the Takaful fund, Qard is
stated at cost. The Qard shall be repaid from future surpluses of the Takaful fund.
Qard is tested for impairment on an annual basis via an assessment of the estimated surpluses or cash flows from
the Takaful fund to determine whether there is objective evidence of impairment. If the Qard is impaired, an amount
comprising the difference between its carrying amount and its recoverable amount, less any impairment loss previously
recognised, is recognised in the statements of profit or loss.

Impairment losses are subsequently reversed in the statements of profit or loss if objective evidence exists that the Qard
is no longer impaired.

2023 2022
rM’000 rM’000
(i) Accumulated surplus/(deficit)
At beginning of the year (6,667) (5,835)
Net surplus/(loss) of the Takaful fund 10,818 (832)
At end of the year 4,151 (6,667)

(ii) Qard
At beginning of the year 6,667 5,835
(Decrease)/increase in Qard (6,667) 832
At end of the year - 6,667