Notes to the Financial Statements - Cahaya Mata Sarawak Bhd

40. Contingencies (contd.)
(b) Other contingency
Notes to the Financial Statements
For the fi nancial year ended 31 December 2011
An amount of RM5,466,968 included in trade receivables is in dispute and in the process of arbitration.
Within the same claim on the receivable, a counterclaim of RM2,240,930 was fi led by the debtor. A
further claim of RM2,265,422 was made by the subsidiary against the debtor for loss of profi ts and other
general damages. Both counterclaims by the debtor and the further claim made by the subsidiary have
not been accounted for in the fi nancial statements.
On 6 January 2012, the Arbitrator awarded in favour of a subsidiary various amount due for work done
for debtor as invoiced (RM5,466,968), damages for wrongful termination of the software development
agreement (RM1,106,784), damages for loss of maintenance (RM701,347), and interest at 2.9% on
each amount on invoices computed from date of invoice, reasonable costs including fees for preparing
and presenting the arbitration. The debtor’s counterclaim was dismissed.
A settlement was reached with the debtor whereby the debtor agrees to pay RM8,558,117 in full and
fi nal settlement of the Arbitrator’s Award. On 29 March 2012, the Court recorded consent judgment for
the payment of the settlement sum of RM8,558,117 by the debtor on or before 6 April 2012.
41. Related party transactions
During the fi nancial year, the Group and the Company had, in the normal course of business transacted on
normal commercial terms the following transactions:
(a) Sales and purchases of goods and services
Group Company
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Interest income received from:
- Associates (1,015 ) (1,936 ) (1,015 ) (1,936 )
- Subsidiaries - - (1,689 ) (614 )
Interest expense paid to subsidiaries - - 9,782 5,847
Fee received from subsidiaries - - (4,513 ) (3,219 )
Management fees received from:
- Subsidiaries - - (265 ) (202 )
- COPE-KPF Opportunities 1 Sdn. Bhd. (1,892 ) (1,578 ) - -
Rental received from a subsidiary - - (600 ) (600 )
Sale of materials to associates (11 ) (28 ) - -
Purchase of materials from an associate 5,737 5,047 - -
Payment for services to:
- Associates 3,965 3,641 41 267
- Achi Jaya Communications Sdn. Bhd. 19 32 2 3
- Centigrade Resources Sdn. Bhd. 683 688 608 604
- Satria Realty Sdn. Bhd. 908 920 824 824
- KTA (Sarawak) Sdn. Bhd. 6 394 - -
- Borneo Isthmus Development Sdn. Bhd. 121 41 46 36
- AGI Asset Management Ltd. - 227 - -
- Opus Asset Management Sdn. Bhd. 161 161 161 155
- Opus Capital Sdn. Bhd. 127 42 - -
Annual Report 2011 155