Wah Seong Corporation Berhad Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 FINANCIAL STATEMENTS WAH SEONG CORPORATION BERHAD ANNUAL REPORT 2017 157 20 AMOUNTS OWING BY/(TO) JOINT VENTURES (a) Amounts owing by joint ventures Group Company 2017 RM'000 2016 RM'000 2017 RM'000 2016 RM'000 Trade accounts 1,678 6,081 - - Interest bearing loan 51,872 59,921 - - Advances 2,292 6,384 23 12 55,842 72,386 23 12 Less: Allowance for impairment loss (425) (454) - - 55,417 71,932 23 12 The Group’s effective interest rate of interest bearing loans as at 31 December 2017 is between 3.26% and 3.75% (2016: 3.26% and 3.75%) per annum. The loans and advances are repayable on demand. The movements in the allowance for impairment loss on the Group’s amounts owing by joint ventures during the financial year are as follows: Group 2017 RM'000 2016 RM'000 At 1 January 454 454 Effect of exchange rate changes (29) - At 31 December 425 454 The Group’s amounts owing by joint ventures exposure to foreign currency (a currency which is other than the functional currency of the Group entities) risk, based on carrying amounts as at the end of the financial year, were: Group 2017 RM'000 2016 RM'000 - United States Dollar 33,380 44,677 - Euro Dollar - 6,081 - China Renminbi 1,080 1,117 34,460 51,875