Annual Report 2023 177 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2023 (CONT’D) 42. CONTINGENT LIABILITIES (CONT’D) 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 (Cont’d):- (c) Material litigation (Cont’d) The Court of Appeal agreed with the findings of the High Court. The sum to be paid for the passport booklet is RM10.00 per passport booklet and PKN is not entitled to the Goods and Services Tax. The Court of Appeal found that the learned trial judge has erred in deciding that the post judgment interest rate of 4% per annum and awarding the cost of RM30,000 to DTSB. The Court of Appeal ordered that PKN is entitled to the interest of 5% per annum. Therefore, the Court of Appeal ordered DTSB to refund the cost of RM30,000 to PKN and further awarded the cost of RM5,000 to PKN for the appeal. No Notice of Appeal has been filed by PKN and the time limit for PKN to file their appeal has lapsed on 26 November 2022. 43. RELATED PARTY DISCLOSURES The transactions of the Company with its related parties are as follows:- Company 2023 2022 RM’000 RM’000 Subsidiaries Management services fees 19,908 15,048 Consultancy fee 510 464 Dividend income 56,000 2,000 Equipment transferred from - 12 Equipment transferred to 2 5 Rental income 1,486 1,477 Rental expense - 75 Waiver of debts - 135 44. OPERATING SEGMENTS Operating segments are prepared in a manner consistent with the internal reporting provided to the chief operating decision makers in order to allocate resources to segments and to assess their performance. For management purposes, the Group is organised into business units based on the products and services provided. The Group is organised into three main reportable segments as follows:- Customised smart card solutions (“CSCS”) - provision of large scale customised software and hardware systems for secure ID, total smart card solutions and ICT project management. Manufacturing (“MA”) - manufacturing of cards and booklets.
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