Eng - IOI Group

38 CONTINGENT LIABILITIES - UNSECUREDIn RM’000GroupCompany2003 2002 2003 2002Litigations involving claims for damagesand compensation 3,007 3,909 - -Guarantees for credit facilities of subsidiaries - - 40,669 78,684Guarantees issued to third parties 8,225 7,474 2,232 349Counter indemnities to banks forbank guarantees issued 18,749 18,358 6,859 6,73929,981 29,741 49,760 85,772Material Litigations - SubsidiariesThe Directors are of the opinion that the possibility of any outflow in settlement arising from the followinglitigations are remote based on legal opinion obtained. Nevertheless, disclosures are made in view of theirmateriality.iUnipamol Malaysia Sdn Bhd ("Unipamol"), a subsidiary of Palmco Holdings Berhad (“Palmco”), has obtainedsummary judgement against Unitangkob (Malaysia) Berhad (“Unitangkob”) in 2001 for the principal sum ofapproximately RM5 million. The defendant has filed an appeal against the summary judgement and otherapplications including an application to amend their Defence and include a Counter Claim against Unipamolfor a sum of RM208 million for special and general damages.iiThe legal suit instituted by the shareholders of Unitangkob against Unipamol, Pamol Plantations Sdn Bhd,Unilever plc and its subsidiary Pamol (Sabah) Ltd in which the Plaintiffs claimed for inter-alia specialdamages of RM43.47 million, general damages of RM136.85 million or such amount as may be assessed bythe court.The relevant subsidiaries have obtained favourable legal opinions on the merits of their respective cases whichwere existing prior to them becoming Palmco’s subsidiaries.The full details of these litigations have been disclosed in the Group’s Quarterly Report.201IOI Corporation BerhadAnnual Report 2003