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Notes to the Financial Statements (cont’d)
For the financial year ended 31 December 2011
36. Contingent liabilities (unsecured) (cont’d)
150
Company
At 31 December 2011, the Company has the following contingent liabilities:
- On 9 February 2011, the Penang High Court delivered a decision that the Company has to pay RM121,200, interest at
the rate of 4% per annum from the date of claim to the date of judgment and further interest at 8% per annum after date
of judgment to date of payment. This is in respect of a statement of claim received by the Company on 7 February 2006
from a party for RM1.28 million with interest at 8% p.a. from the date of summons to the date of settlement plus costs
for an alleged cost overrun for the implementation of an Enterprise Resource Planning System. The party filed an appeal
to the Court of Appeal against the judgement of Penang High Court allowing only part of its claim. No hearing date has
been fixed for the appeal.
37. Related party disclosures
(a) Related party transactions
In addition to the transactions detailed elsewhere in the financial statements, the Group and the Company had the
following transactions with related parties during the financial year.
Group 2011 2010
Note RM’000 RM’000
Related companies *:
- Management fee charged – 348
Associates/jointly controlled entity:
- Sales of products (i) 52,705 53,917
- Interest income (iii) 1,772 108
Consulting fees paid to a director of a subsidiary 60 60
Secretarial fees payable to a foreign subsidiary’s director 46 28
Company
Subsidiaries:
- Purchase of products (ii) 650,482 520,031
- Interest income (iii) 3,784 3,426
- Management fee received 1,993 2,160
- Advances (iv) 3,173 3,136
- Rental paid 1,796 1,801
- Interest expense 41 42
- Dividend 41,382 5,445
Associates/jointly controlled entity:
- Sales of products (i) 52,705 53,917
- Interest income (iii) 1,772 108
- Dividend 28 28
* The related companies are companies within The Straits Trading Company Limited group.
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