30 / 204
*The Board is pleased
to recommend for
shareholders’ approval
a final single-tier
dividend of
7.5 sen
per
share for the financial
year ended 31 March
2019.
The detailed analysis of the results
for the year is presented on pages
30 to 35 of this Annual Report.
In August 2018, we announced
that Mahkamah Agung Republik
Indonesia, the country’s apex
court, has allowed our subsidiary
PT Nunukan Jaya Lestari’s
(“PTNJL”) appeal and ruled that
the Ministerial Order revoking
PTNJL’s Hak Guna Usaha be
annulled. Accordingly, the reversal
of impairment loss of RM23.63
million referred to above were
recognised during the year.
Subsequently in February 2019,
we had also announced that the
defendant, i.e. the Menteri Agraria
dan Tata Ruang/Kepala Badan
Pertahanan Nasional Republik
Indonesia had filed an application
and memorandum to the supreme
court seeking judicial review of
the Mahkamah Agung’s decision;
on grounds that the court had
among others misapplied the law
to the relevant facts in arriving at
the decision. In response, PTNJL
filed its counter-memorandum
on 18 March 2019. Our Indonesian
solicitors have advised that
based on normal timelines for
judicial review, we could expect
the decision to be made in six
to twelve months from the date
the counter-memorandum was
filed. Commencement of the
judicial review proceedings
does not, however, prevent the
implementation of the Mahkamah
Agung’s written decision as
aforesaid.
An important focus area during
FYE2019 for our plantation
division has been the planting
and development of the Group’s
greenfield assets, currently at
different stages of development,
following acquisitions made
by the Group in prior years.
Regrettably, there had been several
more incidences of elephant
encroachments at our estates
resulting in damage to quite a
number of our young palms which
have to be replaced and this in turn
will cause delays before the new
palms can be harvested. Attention
was also given to improve yields
and agronomic standards of our
estates and establishing permanent
and comfortable housing for estate
workers. On a separate note, I
am happy to report that all our
estates have been recommended
to receive Malaysian Sustainability
Palm Oil accreditations.
Manufacturing division’s revenue
declined by 4.3% to RM134.78
million due to volume contraction
* An interim dividend of 5.0 sen per share
was paid to the company’s shareholders
on the 28 December 2018.
Fima CORPORATION Berhad
(21185-P)
Annual Report 2019
26