Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 17 AMOUNTS OWING BY/(TO) JOINT VENTURES (a) Amounts owing by joint ventures Group 2023 2022 RM’000 RM’000 Current Advances 146 205 Non-current Trade accounts 5,525 2,369 Interest bearing loans 52,843 54,837 Advances 1,989 1,690 60,357 58,896 Less: Allowance for impairment loss (36,508) (27,290) 23,849 31,606 During the financial year ended 31 December 2023, the amounts owing by joint ventures are considered performing except for certain interest bearing loans owing by a joint venture of RM8,065,000 (2022: RM Nil) which are deemed not performing. Hence, RM8,065,000 (2022: RM Nil) was impaired during the financial year. Trade accounts are unsecured and interest free. The Group’s effective interest rate of interest bearing loans as at 31 December 2023 is between 3.26% to 3.75% (2022: 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 2023 2022 RM’000 RM’000 At 1 January 27,290 26,697 Impairment loss recognised 8,065 - Effect of exchange rate changes 1,153 593 At 31 December 36,508 27,290 The Group has no significant exposure to foreign currency risk for the amounts owing by joint ventures except for an amount of RM20,811,000 (2022: RM18,876,000) denominated in United States Dollar. Integrated Annual Report 2023 240
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