176 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2023 (CONT’D) DATASONIC GROUP BERHAD FINANCIAL STATEMENT 06 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 2023 2022 2023 2022 RM’000 RM’000 RM’000 RM’000 Performance guarantees extended to customers 17,052 19,833 17,052 19,833 Performance guarantees extended to a supplier - 20 - - 17,052 19,853 17,052 19,833 (b) Corporate guarantees Corporate guarantees for banking facilities granted to the subsidiaries - - 56,133 29,311 (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 15 June 2022, the appeal filed by PKN against DTSB was heard by the Court of Appeal. After having heard the arguments by Counsels of both parties, the Court of Appeal has fixed the date for decision on 18 August 2022. On 18 August 2022, the Court of Appeal has been vacated by the Court and a new Case Management to set new decision date is fixed on 30 August 2022. On 1 September 2022, the Court of Appeal has fixed the date for decision on 26 October 2022. On 26 October 2022, Court of Appeal had allowed part of PKN’s appeal, that is only with regards to the judgment interest and cost awarded by the High Court.
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