170 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 54 SIGNIFICANT RELATED PARTY TRANSACTIONS (CONTINUED) (e) Loans due from subsidiaries Terms and conditions of the loans are disclosed in Note 34 to the financial statements. Company 2021 2020 RM’000 RM’000 At 1 January 368,886 62,600 Addition 446,539 434,437 Repayment (598,595) (128,151) At 31 December 216,830 368,886 55 CAPITAL COMMITMENTS Group 2021 2020 RM’000 RM’000 Capital expenditure approved and contracted for: – Property, plant and equipment 124,368 201,853 124,368 201,853 56 CONTINGENT LIABILITIES Other than those disclosed in Note 57, there are no significant contingent liabilities as at the financial year end. 57 MATERIAL LITIGATION (i) On 18 May 2021, FGV Prodata System Sdn Bhd (“Prodata” or “the 1st Defendant”) an indirect subsidiary of the Company, was served with a sealed Writ of Summons dated 12 May 2021 (“the Writ”) by VDSL Technology Sdn Bhd (“VDSL” or “the Plaintiff”). The Plaintiff claimed for compensation and damages amounting RM170,707,600 due to the 1st Defendant and FELDA’s (“2nd Defendant”) alleged breaches on various arrangements agreed upon by the parties with regard to the Felda Broadband Initiative Project. On 1 November 2021, VDSL has filed amended statement of claim and case management was held on the same day for the main suit, Prodata’s application for security cost and VDSL’s application for protective order. Pursuant to the hearing on 19 January 2022, the Judge directed the case be fixed for mediation for parties to explore and discuss a possible amicable settlement; while the court proceedings to continue to run its course. The Court has fixed the mediation on 11 March 2022. However, upon the application by VDSL to adjourn the mediation, the Court has fixed new date for mediation on 11 May 2022. The Court has fixed 2 June 2022 for hearing of all the interlocutory applications. Based on legal opinion, there is a fair chance of Prodata succeeding in resisting the claim from VDSL.
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