Wah Seong Corporation Berhad Annual Report 2020

155 ANNUAL REPORT 2020 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 17 AMOUNTS OWING BY/(TO) SUBSIDIARIES (CONTINUED) (a) Amounts owing by subsidiaries (continued) The movements in the Company’s allowance for impairment loss of amount owing by subsidiaries during the financial year are as follows: Company 2020 2019 RM’000 RM’000 At 1 January 43,106 43,106 Impairment loss recognised 69,208 - Bad debts written off (110,752) - Effect of exchange rate changes (1,562) - At 31 December - 43,106 The amounts owing by subsidiaries are considered performing except for certain interest bearing loans and interest free advances owing by a subsidiary of RM110,752,000 (2019: nil), which is deemed not performing, of which RM41,544,000 was impaired in prior years and was further impaired by RM69,208,000 during the financial year due to the negative impact of Covid-19 pandemic. Hence, the total amount of RM110,752,000 was subsequently written off during the financial year. The Company’s amounts owing by subsidiaries exposure to foreign currency (a currency which is other than the functional currency of the Company) risk were: Company 2020 2019 RM’000 RM’000 - United States Dollar - 52,745 (b) Amounts owing to subsidiaries Company 2020 2019 RM’000 RM’000 Interest bearing loans (unsecured) 14,258 16,963 Non-trade accounts 2,958 3,629 17,216 20,592 The effective interest rate of interest bearing loans as at 31 December 2020 ranges between 4.08% to 4.46% (2019: 4.75% to 4.77%) per annum. The loans are denominated in Ringgit Malaysia and are repayable on demand. Non-trade accounts are denominated in Ringgit Malaysia, unsecured, interest free and repayable on demand.