Wah Seong Corporation Berhad Annual Report 2018

19 AMOUNTS OWING BY/(TO) SUBSIDIARIES (a) Amounts owing by subsidiaries Company 2018 2017 RM’000 RM’000 Interest bearing loans (unsecured) 202,702 183,191 Interest free advances (unsecured) 4,255 9,786 206,957 192,977 Less: Allowance for impairment loss (43,106) (43,106) 163,851 149,871 The effective interest rate of interest bearing loans as at 31 December 2018 ranges between 4.80% to 8.85% (2017: 2.00% to 6.25%) per annum. The loans and advances are recoverable on demand. The movements in the allowance for impairment loss of amounts owing by subsidiaries during the financial year are as follows: Company 2018 2017 RM’000 RM’000 At 1 January 43,106 43,661 Impairment loss reversed - (555) At 31 December 43,106 43,106 There is no impairment of amounts owing by subsidiaries as the rate of default and expected loss rate is low. The Company’s amounts owing by subsidiaries exposure to foreign currency (a currency which is other than the functional currency of the Company) risk, based on carrying amounts as at the end of the financial year, were: Company 2018 2017 RM’000 RM’000 - United States Dollar 72,515 89,348 (b) Amounts owing to subsidiaries Company 2018 2017 RM’000 RM’000 Non-trade account 6,797 1,291 The Company’s amounts owing to subsidiaries are denominated in Ringgit Malaysia, unsecured, interest free and repayable on demand. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 ANNUAL REPORT 2018 147