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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.