Notes to Fina - 星島新聞集團

Notes to Fina
Notes to Financial Statements
31 December 2002
38. CONTINGENT LIABILITIES (continued)
38.
(d)
(continued)
(d)
The applicable limitation period with respect to the
mortgagee’s ability to assert a claim would be six years
from the date of disposal of the property, which ended
in December 2002. The Group has not received any
claims from the mortgagee during the aforesaid
limitation period and up to the date of approval of
these financial statements. Based on a legal advice,
the directors consider that the limitation period has
run and that a claim would not be likely to succeed
27,447,000
against the Group. Accordingly, the Group reversed the
provision in respect of its proportionate share of
mortgage liability of approximately HK$27,447,000
under the guarantee and the directors are of the opinion
that the contingent liability in respect of the remaining
excess mortgage liability no longer existed as at 31
December 2002.
39. PENDING LITIGATION
39.
The Group has received claims made against certain
subsidiaries for damages in respect of alleged
defamation. Based on legal opinion, the directors are
of the opinion that adequate provision has been made
in the financial statements to cover any potential
liabilities arising from the litigation.
156
Global China Group Holdings Limited Annual Report 2002