Full Annual Report 2005 - MAA Group

Notes To The Financial Statements - 31 December 2005 (continued)41 CONTINGENT LIABILITIES(a) During the financial year, unsecured contingent liabilities in respect of guarantees issued to banks for bankingfacilities extended to subsidiary companies amounted to RM26 million (2004: Nil). At 31 December 2005, theunsecured contingent liabilities in respect of guarantees issued to banks drawndown by subsidiary companiesamounted to RM3.0 million (2004: Nil). It is anticipated that no material liabilities will arise as a result of theseguarantees.(b) During the financial year, two clients of Meridian Asset Management Sdn Bhd (“MAMS”), a 51% ownedsubsidiary company of MAA Corporation Sdn Bhd which is in turn a wholly owned subsidiary company of theCompany, had suffered a RM27.6 million loss of investment moneys arising from the negligence of Am TrusteeBerhad (“Am Trustee”), the appointed trustee, in the provision of custodian services. MAMS has instituted legalproceedings on behalf of the clients against Am Trustee and other parties to recover the losses.The directors of MAMS, supported by legal advice, are of the opinion that MAMS has a strong case against AmTrustee in the legal actions mentioned above. However, for prudence purposes, a provision amounting of RM19.6million has been made in the financial statements for the financial year ended 31 December 2005.42 NON-CANCELLABLE OPERATING LEASE COMMITMENTS2005GROUPGeneral and_______________________Shareholders’ fund _______________________ Life fundFuture Future Future Futureminimum minimum minimum minimumlease sublease lease subleasepayments receipts payments receiptsRM'000 RM'000 RM'000 RM'000Not later than 1 year 1,553 875 5,247 2,228Later than 1 year and not later than 5 years 3,106 1,750 10,494 4,4564,659 2,625 15,741 6,684141financialstatements20052004Not later than 1 year 1,553 875 5,247 2,228Later than 1 year and not later than 5 years 4,659 2,625 15,741 6,6846,212 3,500 20,988 8,912