Annual Report 2012, PDF - Axiata Group Berhad - Investor Relations

Axiata Group Berhad (242188-H) Annual Report 201237. CONTINGENCIES AND COMMITMENTS (CONTINUED)(d) List of contingent liabilities as at 31 December of the Group are as follows:Description 2012RM’millionPotential exposure2011RM’million1 Celcom Trading Sdn Bhd [formerly known as Rego Multi-TradesSdn Bhd] (“Celcom Trading”) vs Aras Capital Sdn Bhd (“ArasCapital”) and Tan Sri Dato’ Tajudin Ramli (“TSDTR”)100.0 100.0In 2005, Celcom Trading, a wholly-owned subsidiary of Celcom,commenced proceedings against Aras Capital and TSDTR foramounts due to Celcom Trading pursuant to an investment agreementwith Aras Capital and an indemnity letter given by TSDTR. TSDTRfiled its defence and instituted a counterclaim against CelcomTrading, Celcom Resources Berhad [formerly known as TechnologyResources Industries Berhad] (“Celcom Resources”) and its directorsto void and rescind the indemnity letter and claim damages.The Board of Directors, based on legal advice received, are of theview that it has good prospects of succeeding on the claim andsuccessfully defending the counterclaim if the same were to proceedto trial.2 VIP Engineering and Marketing Limited (“VIPEM”) vs CelcomResources on TRI Telecommunications Tanzania Limited(“Tritel”)63.7 63.7In December 2001, vide Civil Case No. 427 of 2001, VIPEM claimeda sum of USD18.6 million from Celcom Resources as its share of lossof profits for the mismanagement of Tritel, a joint venture companybetween Celcom Resources and VIPEM. In light of the winding-uporder made against Tritel, Celcom Resources filed its claims ofRM123.4 million with the liquidator of Tritel in July 2003.The Board of Directors, based on legal opinion received, are of theview that the allegations of mismanagement, are rhetorical andunsubstantiated. In view of the winding up proceedings, there is alsoa possibility that VIPEM will not pursue its claim.279