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MMC Corporation Berhad

Annual Report 2017

208
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017

34 SEGMENTAL INFORMATION (CONTINUED)


The Group's operations are principally based in Malaysia. The foreign-based entities' revenue, results, assets and liabilities in
comparison to the Group's figures are not significant. Accordingly, no segmental information based on geographical segment is
disclosed.

The following are major customers with revenue equal or more than 10% of the Group's total revenue:

2017 2016
Customer Segment RM'000 RM'000

Customer A Ports and logistics 667,723 618,278


Customer B Engineering and construction 597,108 914,229

Total 1,264,831 1,532,507

35 SIGNIFICANT CONTINGENT LIABILITIES


(a) A jointly-controlled entity of the Company, MMC Gamuda KVMRT (PDP) Sdn. Bhd. ("KVMRT PDP") was served with a Writ
and Statement of Claim by Accolade Land Sdn. Bhd. ("Accolade") on 24 June 2016.

The suit is premised on a purported breach of an alleged contract between Accolade and Mass Rapid Transit Corporation
Sdn. Bhd. ("MRT Corp") relating to the acquisition of Accolade's land by MRT Corp for the Klang Valley Mass Rapid Transit
project, in which KVMRT PDP was the Project Delivery Partner. In the suit, Accolade claims, jointly and severally against the
four Defendants, damages in the sum of RM303,534,216, interest and costs.

On 20 April 2017, the High Court allowed the striking out applications by KVMRT PDP and the other Defendants against
Accolade's claims, with costs. Accolade has filed an appeal to the Court of Appeal against the High Court decision, which
hearing is fixed on 24 April 2018.

(b) At 31 December 2017, the contingent liabilities in respect of guarantees issued are as follows:

Group Company
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000

Bank guarantees issued to third parties for


performance (secured/unsecured) 220,369 194,533 – –

Bank guarantees issued to third parties mainly comprise customers and utilities suppliers. These are mainly in respect of
performance bonds and payment guarantee for utilities facilities.

There are no other material contingent liabilities, litigations or guarantees other than those arising in the ordinary course of the
business of the Group and the Company and the Directors are of the opinion that their outcome will not have a material adverse
effect on the financial positions of the Group and the Company.

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