Wah Seong Corporation Berhad Annual Report 2021 167 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 19 AMOUNTS OWING BY/(TO) JOINT VENTURES (a) Amounts owing by joint ventures Group 2021 2020 RM’000 RM’000 Current Advances 180 186 Non-current Trade accounts 2,239 1,268 Interest bearing loans 47,308 45,431 Advances 6,060 4,282 55,607 50,981 Less: Allowance for impairment loss (26,697) (24,741) 28,910 26,240 In the financial year ended 31 December 2021, the amounts owing by joint ventures are considered performing. Hence, no ECL allowance was made in the current financial year. In the financial year ended 31 December 2020, the amounts owing by joint ventures are considered performing except for certain trade account, interest bearing loans and advances owing by joint ventures of RM50,981,000 which is deemed underperforming and hence an ECL allowance of RM23,314,000 was made in the previous financial year. Trade accounts are unsecured and interest free. The Group’s effective interest rate of interest bearing loans as at 31 December 2021 is between 3.26% to 3.75% (2020: 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 2021 2020 RM’000 RM’000 At 1 January 24,741 2,200 Impairment loss recognised - 23,314 Effect of exchange rate changes 1,956 (773) At 31 December 26,697 24,741 The Group has no significant exposure to foreign currency risk for the amounts owing by joint ventures except for an amount of RM16,878,000 (2020: RM16,433,000) denominated in United States Dollar.
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