165 / 174
financiAL STATEMENTs
Annual Report 2017
163
NOTES TO THE FINANCIAL STATEMENTS
37. SUBSEQUENT EVENTS
(i)
Hak Guna Usaha No. 01/Nunukan Utara
On 23 August 2016, the Company’s subsidiary, PT Nunukan Jaya Lestari (“PTNJL”), received an order issued by the
Menteri Agraria dan Tata Ruang/Kepala Badan Pertanahan Nasional (“Ministerial Order”) dated 25 July 2016 to revoke
PTNJL’s land title Hak Guna Usaha (“HGU”) for the cultivation of oil palm in Kalimantan Utara with immediate effect.
The Ministerial Order was on the basis that the HGU was improperly issued due to administrative irregularities performed
by certain officers of the Badan Pertanahan Nasional Provinsi Kalimantan Timur at the time of the issuance of the HGU in
2003, resulting in parts of the area within the HGU to overlap with forestry areas.
On 21 October 2016, PTNJL filed an application in the Pengadilan Tata Usaha (“PTUN”) in Jakarta, Indonesia seeking an
order to annul the Ministerial Order. Simultaneously, in the said application, PTNJL has also sought an order from PTUN
to postpone the enforcement of the Ministerial Order pending full and final determination of the matter by the Indonesian
courts.
On 13 June 2017, the State Administrative Court delivered an oral judgment and dismissed the application filed PTNJL to
annul the Ministerial Order. On 21 June 2017, PTNJL had filed an application to the Court of Appeal to appeal against the
decision of the State Administrative Court.
The assets affected by the Ministerial Order had been impaired, resulting in gross impairment loss totalling RM44,735,000.
(ii) Acquisition of remaining equity in Next Oasis Sdn Bhd
On 29 May 2017, subsidiary, FCB Plantation Holdings Sdn Bhd acquired 110 ordinary shares representing the remaining
11% of the equity interest in Next Oasis Sdn. Bhd. from London Nusantara Plantations PLC for a cash consideration of
RM173,000.
38. AUTHORISATION OF FINANCIAL STATEMENTS FOR ISSUE
The financial statements for the year ended 31 March 2017 were authorised for issue in accordance with a resolution of the
directors on 22 June 2017.