control of the Group and of the Company. The Group and the Company do not recognise contingent assets but disclose its existence where inflows of economic benefits are probable, but not certain. Determination of the treatment of contingent liabilities is based on the Group’s and the Company’s view of the expected outcome of the contingencies after consulting legal counsel for litigation cases and internal and external experts to the Group and the Company for matters in the ordinary course of business. Contingent liabilities Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Claims by third parties: - Contractors 82.1 154.7 82.1 154.7 - Customers 14.5 13.9 14.5 13.9 - Others 185.7 173.7 21.2 9.2 282.3 342.3 117.8 177.8 Trade guarantees and performance bonds 0 51.0 0 0 282.3393.3 117.8 177.8 NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 298 42 CONTINGENT LIABILITIES AND MATERIAL LITIGATIONS (CONTINUED) Contingent liabilities (continued) All third party claims are being resolved and the Directors are of the opinion that their outcomes will not have a material adverse effect on the financial positions of both the Group and the Company. Claims by third parties include claims by contractors, consumers and statutory body. These claims are being addressed and the Directors are of the opinion that their ultimate resolution will not have a material effect on the financial position of the Group and the Company. Trade guarantees and performance bonds provided to third parties for the benefit of the Group and the Company are for normal and ongoing business requirements consistent with generally acceptable and recognised industry practices. The liability would only trigger upon the default of the Group’s and the Company’s obligations under the guarantees and bonds. At the reporting date, the likelihood of the guarantees and bonds being called upon is remote. Material litigations (a) Reinvestment allowance (‘RIA’) On 7 December 2016, the