continued - The Lion Group
continued - The Lion Group
continued - The Lion Group
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37. COMMITMENTS<br />
Capital Commitments<br />
As at end of the financial year, the <strong>Group</strong> has the following capital commitments:<br />
109<br />
<strong>Group</strong><br />
2010 2009<br />
RM’000 RM’000<br />
Capital expenditure for property, plant and equipment:<br />
- approved and contracted for 20,038 56,480<br />
- approved but not contracted for 47,926 48,174<br />
38. CONTINGENT LIABILITIES<br />
67,964 104,654<br />
Company<br />
2010 2009<br />
RM’000 RM’000<br />
(a) Guarantees in respect of loans and credit facilities<br />
granted to subsidiaries<br />
- unsecured 62,722 62,981<br />
(b) On 22 April 2010, a Writ of Summons was filed against Megasteel and Mr Lai Chin Yang, a marketing<br />
general manager of Megasteel, in respect of a claim for RM20 million by Eonmetall Industries Sdn Bhd for<br />
defamation. <strong>The</strong> High Court has yet to fix a date to hear the claim.<br />
<strong>The</strong> Directors of the Company, after consultation with the lawyers, are of the opinion that there is a good<br />
defence for the above litigation claim. No material financial loss or operational impact on the <strong>Group</strong> is<br />
expected as a result of the claim.<br />
<strong>Group</strong><br />
2010 2009<br />
RM’000 RM’000<br />
(c) Offtake deposit pledge to banks for credit facilities<br />
granted to a related party (Note 21) 45,000 45,000
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