Wah Seong Corporation Berhad Annual Report 2019

156 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 20 AMOUNTS OWING BY/(TO) JOINT VENTURES (a) Amounts owing by joint ventures Group 2019 2018 RM’000 RM’000 Trade accounts 1,990 1,784 Interest bearing loans 46,074 53,082 Advances 1,939 605 50,003 55,471 Less: Allowance for impairment loss (2,200) - 47,803 55,471 The amounts owing by joint ventures are considered performing except of certain interest bearing loan owing by a joint venture of RM31,439,000 which is deemed underperforming and hence an ECL allowance of RM2,200,000 was made during the financial year. Trade accounts are unsecured, interest free and recoverable within 30 days. The Group’s effective interest rate of interest bearing loans as at 31 December 2019 is between 3.26% to 3.75% (2018: 3.26% to 3.75%) per annum. The loans and advances are unsecured and recoverable 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 2019 2018 RM’000 RM’000 At 1 January - 425 Impairment loss recognised 2,200 - Written off - (421) Effect of exchange rate changes - (4) At 31 December 2,200 - The Group has no significant exposure to foreign currency risk for the amounts owing by joint ventures except for an amount of RM33,131,000 (2018: RM32,496,000) denominated in United States Dollar. (b) Amounts owing to joint ventures Group 2019 2018 RM’000 RM’000 Trade accounts 5,311 3,757 Non-trade accounts 235 202 5,546 3,959 Trade accounts are unsecured, interest free and repayable within 30 to 90 days. Non-trade accounts are unsecured, interest free and repayable on demand.