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Annual Report 2017

29

reported consolidated

revenue of RM

547.21

million,

1.1%

or RM6.10 million higher

compared to last year.

CHAIRMAN’S

STATEMENT

Order”) on the basis that the HGU was

improperly issued due to administrative

irregularities performed by certain

officers of the Badan Pertanahan

Nasional Provinsi Kalimatan 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.

PTNJL has since filed an application in

the Pengadilan Tata Usaha Negara in

Jakarta, Indonesia (“State Administrative

Court”) seeking an order to annul the

Ministerial Order. PTNJL’s application in

the State Administrative Court to annul

the Ministerial Order was dismissed

by the State Administrative Court on

13 June 2017. Subsequently on 21 June

2017, PTNJL filed an application to the

Pengadilan Tinggi Tata Usaha Negara

Jakarta to appeal against the State

Administrative Court’s decision.

Notwithstanding the Ministerial Order,

the local government in Kabupaten

Nunukan has given its undertaking and

allowed PTNJL to continue to lawfully

operate its plantation operations until

the final determination of the suit by

the Indonesian courts. The suit is still

ongoing to date but rest assured, PTNJL

will defend their position vigorously

through available legal avenues.

DIVIDEND

Reflecting on the Group’s cashflow,

strong balance sheet and growth outlook,

the Board of Directors is pleased to

recommend for shareholders’ approval

a final single-tier dividend of 9% for the

financial year ended 31 March 2017 at the

forthcoming Annual General Meeting.

The Group will continue to pursue a

dividend practice that recognises the

need to achieve a balance between

providing

reasonable

returns

to

shareholders whilst conserving funds for

new investment opportunities critical to

long term growth.

GOVERNANCE & SUSTAINABILITY

Board evaluation for FYE2017 was

externally facilitated by consultants from

Boardroom Corporate Services (KL) Sdn

Bhd and this provided both positive

and constructive feedback. The Board

evaluation process and summary are

described on page 79 of this Report.

Further,

the

Nomination

and

Remuneration Committees have been

combined into a single Nomination

and Remuneration Committee (“NRC”)

and the scope of the new NRC have

been enlarged to include (i) reviewing

and recommending the appropriate

remuneration policies applicable to

directors of subsidiaries and senior

management, and (ii) the recruitment,

appointment and evaluation of the

performance of directors of subsidiaries

and senior management. This exercise

is part of the Board’s commitment to

continuously strengthen the Group’s

governance process and the appropriate

succession arrangements for its senior

leadership team which in turn is a vital

element in ensuring the future of our

company.

During the year we had also

strengthened the Group’s sustainability

governance structure. We now have an

internal Sustainability Committee that

will oversee monitor the progress of our

sustainability endeavours. On the same

token, the Group has during the year

initiated analysis and tracking of the

environmental impact of our operations. It

is an honest self-reflection on the Group’s

position and performance against the

key issues facing our businesses. So in

this year’s Sustainability Report you will

find more comprehensive reporting on,

among others, the Group’s energy use,

CO2 emissions and the various efforts

being undertaken to reduce the Group’s

carbon footprint. It is my hope, as well

as that of my fellow Board members,

that you will find value in the information

we have compiled and as always, we

welcome your feedback.