Wah Seong Corporation Berhad Annual Report 2019

155 ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 18 AMOUNTS OWING BY/(TO) SUBSIDIARIES (CONTINUED) (b) Amounts owing to subsidiaries Company 2019 2018 RM’000 RM’000 Interest bearing loans (unsecured) 16,963 3,853 Non-trade accounts 3,629 2,944 20,592 6,797 The effective interest rate of interest bearing loans as at 31 December 2019 ranges between 4.75% to 4.77% (2018: 4.75%) 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. 19 AMOUNTS OWING BY/(TO) ASSOCIATES (a) Amounts owing by associates Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Trade accounts 16,848 7,396 - - Advances 3,538 4,221 26 20 20,386 11,617 26 20 Trade accounts are unsecured, interest free and recoverable within the normal credit period. The advances are unsecured, interest free and recoverable on demand. There is no impairment of amounts owing by associates as the rate of default and expected loss rate is low. The Group has no significant exposure to foreign currency risk for the amounts owing by associates. The Company’s amounts owing by associates is non-trade in nature, unsecured, interest free and recoverable on demand. As at 31 December 2019 and 31 December 2018, the Company has no exposure to foreign currency risk for the amounts owing by associates. (b) Amounts owing to associates The Group’s amounts owing to associates is non-trade in nature, unsecured, interest free and repayable on demand. The Group has no significant exposure to foreign currency risk for the amounts owing to associates.