Annual Report 2022 155 ABOUT US LEADERSHIP PERSPECTIVE SUSTAINABILITY GOVERNANCE FINANCIAL STATEMENTS Other Information Notes to the Financial Statements for the Financial Year Ended 31 March 2022 (Cont’d) 42. CONTINGENT LIABILITIES The following items are disclosed as contingent liabilities as it is not probable that a future sacrifice of economic benefits will be required or the amounts are not capable of reliable measurement:- (a) Performance guarantees Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 Performance guarantees extended to customers 19,833 17,174 19,833 17,174 Performance guarantees extended to a supplier 20 20 - - 19,853 17,194 19,833 17,174 (b) Corporate guarantees Corporate guarantees for banking facilities granted to the subsidiaries - - 29,311 54,988 (c) Material litigation On 1 August 2018, a wholly-owned subsidiary, DTSB, has received a writ of summons together with the statement of claim dated 30 July 2018 ("Suit") filed by Percetakan Keselamatan Nasional Sdn Bhd ("PKN") against DTSB. The Suit is in relation to a disagreement between DTSB and PKN over the price of 1,500,000 Malaysian Passport booklets supplied by PKN to DTSB as DTSB's sub-contractor for the interim period of 6 months from 1 December 2016 to 31 May 2017, before the Malaysian Passport booklets were fully printed and supplied by DTSB to the Government of Malaysia. On 13 October 2021, the High Court had delivered its judgement for the Defendant i.e. DTSB to pay a total sum of RM15,000,000 to the PKN. The High Court also dismissed PKN's claim for GST and prejudgement interest calculated from the date of the PKN's invoices. Instead, the High Court had only awarded a post judgment interest rate of 4% per annum. Cost of RM30,000 was awarded and to be paid to DTSB. On 2 November 2021, DTSB had been served with a Notice of Appeal filled by PKN at the Court of Appeal on 29 October 2021. On 24 December 2021, the Court of Appeal had fixed the date of hearing on 15 June 2022 and had further directed the parties to file written submissions on/before 31 May 2022. The pre-hearing case management is on 2 June 2022 to update the Court on the status of filing of the written submission. The Management estimates that the potential financial impact arising from the appeal by PKN against the High Court's judgement, if any, is up to RM10 million.
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