KOTRA INDUSTRIES BERHAD - Kotra Pharma

KOTRA INDUSTRIES BERHAD
(Incorporated in Malaysia)
Company No. : 497632 – P
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007
39. CONTINGENT LIABILITIES
(a)
(b)
Corporate guarantee given to a licensed bank for credit facilities granted to the
subsidiary amounted to RM72,500,000 (2006 – RM9,630,000).
In the year 2000, a third party (“the plaintiff”) initiated legal action against the
subsidiary for alleged infringement of trade marks on two products sold by the
subsidiary. As at the date of this report, the suits are at the end of trial stage and
both parties had filed their final submission and pending judgment from the
Court. Should the plaintiff succeed in this legal suit, the subsidiary is liable to
court costs and legal fees of approximately RM350,000 and to pay the plaintiff
for damages, the quantum of which cannot be determined at the date of this
report. However, since there is a counterclaim by the subsidiary, the subsidiary
should be able to recover a minimum of 25% of the legal fees and
disbursements expended if the subsidiary is successful. The directors are of the
opinion that the claims are without basis and hence no provision has been made
for in the financial statements.
40. FOREIGN EXCHANGE RATES
The applicable closing foreign exchange rates used (expressed on the basis of one unit
of foreign currency to Ringgit Malaysia equivalent) for the translation of foreign currency
balances at the balance sheet date are as follows:-
THE GROUP
2007 2006
RM
RM
Euro 4.690 4.701
United States Dollar 3.422 3.642
Hong Kong Dollar 0.453 0.461
Indonesian Rupiah (100 unit) 0.040 0.041
Singapore Dollar 2.231 2.286
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