UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 305 304 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 41. SEGMENT INFORMATION (CONTD.) Geographical information (contd.) Revenue and non-current assets information based on the geographical location of customers and assets respectively are as follows: (contd.) Non-current assets 2021 RM’000 2020 RM’000 Malaysia 596,734 608,049 United Arab Emirates 1,141 243 India 37,223 31,582 Indonesia 213 677 Singapore 442,153 459,439 Taiwan 6,848 6,527 Consolidated 1,084,312 1,106,517 Non-current assets information presented above consist of the followings items as presented in the consolidated statement of financial position: 2021 RM’000 2020 RM’000 Property, plant and equipment 166,502 193,678 Right-of-use assets 37,281 40,827 Land held for property development 477 477 Intangible assets 699,204 718,349 Investment in associates 102,922 85,203 Other investments 232 232 Contract assets 75,078 60,957 Contract fulfillment asset 2,616 6,794 1,084,312 1,106,517 Information about major customers Revenue from two (2020: two) major customers amounted to RM455.7 million and RM532.6 million (2020: RM412.9 million and RM367.8 million) respectively, arising from services rendered in the Infrastructure Services and Healthcare Support segment. 42. SIGNIFICANT CONTINGENT LIABILITIES There is no significant contingent liabilities other than those disclosed in the note below: (a) Ahmad Zaki Sdn. Bhd. (“AZSB”) vs Edgenta PROPEL Berhad (“EPB”) AZSB has commenced an action against the Company on the claim that EPB has breached the terms of contract, mainly due to the EPB’s failure to meet completion date. Thus, AZSB had to engage third parties to complete some of the works under the contract. AZSB is therefore seeking reliefs amounting to RM30.9 million from EPB. The trial date has not yet been set and therefore it is not practicable to state the timing of any potential outflow, if any. EPB has been advised by its legal counsel that it has a good defence against the claim. Accordingly, no provision for any liability has been made in these financial statements. (b) Magna Meditech Sdn. Bhd. (“MMSB”) vs Edgenta Mediserve Sdn Bhd (“EMS”) MMSB has commenced an action against EMS on the claim that EMS has breached the terms of contract, by prematurely and unlawfully terminating the contract. MMSB seeks reinstatement of the contract by way of a new term of 3 years with an extension of further 2 years damages amounting to RM22.0 million. The trial date has not yet been set and therefore it is not practicable to state the timing of any potential outflow, if any. EMS has been advised by its legal counsel that it has a good defence against the claim. Accordingly, no provision for any liability has been made in these financial statements. (c) Director General of Inland Revenue Board of Malaysia (“DGIR”) had served UEM Edgenta Berhad (“UEM Edgenta” or “the Company”) with additional tax assessment for the years of assessment 2015, 2016, 2017 and 2018 for additional income taxes of RM18.7 million. The additional income tax was imposed by DGIR mainly pursuant to the dispute on the status of the Company as a Management Service Company and shall be taxes as an Investment Holding Company under Section 60FA of the Income Tax Act, 1967. The trial date has not yet been set and therefore it is not practicable to state the timing of any potential outflow, if any. The Company has been advised by its legal counsel that it has a valid legal claim to challenge the basis of assessment. Accordingly, no provision for any liability has been made in these financial statements. (d) DGIR had served EPB with additional tax assessment for the years of assessment 2016 to 2018 for additional income taxes of RM9.4 million. The additional income taxes are consequent to the DGIR’s view that EPB ought to not have deducted the adjusted losses surrendered to it by UEM Edgenta Berhad, flowing from DGIR’s position that UEM Edgenta is not a management services company as described in Note 42(c). The trial date has not yet been set and therefore it is not practicable to state the timing of any potential outflow, if any. The Company has been advised by its legal counsel that it has a valid legal claim to challenge the basis of assessment. Accordingly, no provision for any liability has been made in these financial statements.
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