to download - Boustead Holdings Berhad

30. COMMITMENTS
Group Company
2004 2003 2004 2003
RM’000 RM’000 RM’000 RM’000
Acquisition of investment in Subsidiaries 364,000 1,722 50,000 1,722
Subscription to a Subsidiary’s Rights Issue — — — 109,000
Capital expenditure contracted 166,000 265,000 — —
Capital expenditure authorised but not contracted 86,000 90,000 11,500 6,600
616,000 356,722 61,500 117,322
31. CONTINGENT ASSET
A Subsidiary has lodged appeals against the valuations adopted by the Government on the compulsory
acquisitions of 1,996 hectares of estate land. The disputes on the quantum of any additional compensation
have not been settled and the potential benefit if any, has not been included in these financial statements.
32. CONTINGENT LIABILITIES
(i) There is a pending claim against a Subsidiary for goods sold, delivered and invoiced together with
costs and interest. The Subsidiary had denied the claim and filed a counterclaim together with further
cost and interests. The Directors, in consultation with legal counsel, are of the opinion that the claim
is without merit and no provision is required.
(ii) Pursuant to a claim initiated by the Company against a debtor for the recovery of debts, a
counterclaim was subsequently filed by the debtor seeking specific damages for a sum of RM50
million, cost and interest, and that several agreements and debentures entered into previously be
declared null and void. The Directors, in consultation with legal counsel, are of the opinion that the
counterclaim is without merit and has no likelihood of success.
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