NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 16 AMOUNTS OWING BY/(TO) SUBSIDIARIES (a) Amounts owing by subsidiaries Company 2022 2021 RM’000 RM’000 Interest bearing loans (unsecured) 9,668 21,274 Interest free advances (unsecured) 11,621 4,636 21,289 25,910 Less: Allowance for impairment loss (2,792) (232) 18,497 25,678 The effective interest rate of interest bearing loans as at 31 December 2022 ranges between 3.94% to 6.15% (2021: 2.42% to 5.58%) per annum. The loans and advances are denominated in Ringgit Malaysia and are recoverable on demand. The movements in the Company’s allowance for impairment loss of amount owing by subsidiaries during the financial year are as follows: Company 2022 2021 RM’000 RM’000 At 1 January 232 - Impairment loss recognised 2,560 232 At 31 December 2,792 232 During the financial year ended 31 December 2022, the amounts owing by subsidiaries are considered performing except for certain interest bearing loans and interest free advances owing by subsidiaries of RM2,560,000 (2021: RM232,000) which are deemed not performing. Hence, RM2,560,000 (2021: RM232,000) was impaired during the financial year. (b) Amounts owing to subsidiaries Company 2022 2021 RM’000 RM’000 Interest bearing loans (unsecured) 22,400 24,258 Non-trade accounts 10 4,890 22,410 29,148 The effective interest rate of interest bearing loans as at 31 December 2022 ranges between 2.11% to 4.55% (2021: 2.11% to 4.08%) 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. Annual Report 2022 Wah Seong Corporation Berhad 169
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