KUMPULAN FIMA BERHAD ANNUAL REPORT 2020

Annual Report 2020

216

Notes to the Financial Statements

As at 31 March 2020

kumpulan Fima Berhad

(197201000167)(11817-V)

45. Associates and activities

Details of associates are as follows:

Proportion of

ownership interest

Name of associates

2020

2019 Principal activities

Marushin Canneries (Malaysia) Sdn. Bhd.*

38.0

Manufacturer and sale of canned fish

Held through subsidiary:

Giesecke & Devrient Malaysia Sdn. Bhd.*

20.0

Printing and production of bank notes

* Associates audited by firms of auditors other than Ernst & Young PLT.

46. Material litigation

Hak Guna Usaha No. 01/Nunukan Utara

(a)

On 13 May 2003, the National Land Body of Indonesia (“NLB”) issued a certificate, Hak Guna Usaha (“HGU”)

providing the Company's subsidiary, PT Nunukan Jaya Lestari (“PTNJL”) a right to use a land covering a total size

of 19,974 hectares (“Total Parcel”) identifiable as No. 1/Nunukan Barat for the purposes of plantation. The HGU is

set to expire on 12 May 2038.

Notwithstanding the HGU, the Minister of Agrarian Affairs and Spatial Planning (“Minister”) vide letter dated 25

July 2016 (“Revocation Letter”) informed the PTNJL among others, of the following:

There were administrative irregularities performed by officer(s) of the Regional Land Body of East Kalimantan

in respect of the HGU. Due to these irregularities, it was identified that 17,165 hectares (“Irregular Parcel”) of

the Total Parcel is delineated for forestry.

A third party situated adjacent to the Total Parcel (“Third Party”) has requested to revise/amend the HGU

as there are overlaps between the Total Parcel with the Third Party’s interests on the land pursuant to their

operating permits (approximately 3,500 hectares) (“Overlapping Parcel”).

Following the above, the Minister vide the Revocation Letter has provided the following decisions:

the HGU is revoked effectively immediately (“Revocation”);

PTNJL to apply for a new certificate for the remaining 2,809 hectares of land located at Land Allocated for

Other Purposes (“APL”); and

The Irregular Parcel is to be surrendered to the Minister of Environmental Affairs and Forestry of Republic of

Indonesia.