NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 18 AMOUNTS OWING BY/(TO) JOINT VENTURES (a) Amounts owing by joint ventures Group 2022 2021 RM’000 RM’000 Current Advances 205 180 Non-current Trade accounts 2,369 2,239 Interest bearing loans 54,837 47,308 Advances 1,690 6,060 58,896 55,607 Less: Allowance for impairment loss (27,290) (26,697) 31,606 28,910 During the financial year ended 31 December 2022, the amounts owing by joint ventures are considered performing. Hence, no ECL allowance was made in the current financial year. Trade accounts are unsecured and interest free. The Group’s effective interest rate of interest bearing loans as at 31 December 2022 is between 3.26% to 3.75% (2021: 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 2022 2021 RM’000 RM’000 At 1 January 26,697 24,741 Effect of exchange rate changes 593 1,956 At 31 December 27,290 26,697 The Group has no significant exposure to foreign currency risk for the amounts owing by joint ventures except for an amount of RM18,876,000 (2021: RM16,878,000) denominated in United States Dollar. Annual Report 2022 Wah Seong Corporation Berhad 171
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