MKH Annual Report 2017

36. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (continued) (d) On 2 December 2016, MKH Plantation Sdn. Bhd. (“MPSB”), received approval from the Investment Coordination Board of Indonesia (Badan Koordinasi Penanaman Modal) for the transfer of sale shares in respect of the acquisition of PT Sawit Prima Sakti (“PTSPS”) from the vendor to MPSB. MPSB has on 9 December 2016 completed the acquisition of 75% equity interest in PTSPS. (e) On 4 July 2017, the Company acquired 2 ordinary shares representing 100% of the equity interest in MKH IHS Precast Sdn Bhd (“MIPSB”), for a cash consideration of RM2. As a result, MIPSB became a 100% owned subsidiary of the Company. 37. SIGNIFICANT EVENT SUBSEQUENT TO THE FINANCIAL YEAR END On 30 October 2017, Kajang Resources Corporation Sdn Bhd, a wholly owned subsidiary of the Company has agreed to donate three pieces of lands totalling approximately 4.83 acres located along Persiaran Hillpark, 43500 Semenyih, Selangor Darul Ehsan to Lembaga Pengurus SMJK Yu Hua Kajang (2) (upon the lembaga duly instituted) for the purpose of building and establishing Sekolah Menengah Jenis Kebangsaan Yu Hua Kajang (2). 38. OPERATING LEASE ARRANGEMENTS - THE GROUP AS LESSOR The Group has entered into property leases on its investment properties, which comprise freehold and leasehold land and buildings, with non-cancellable lease terms ranging from 12 to 30 years. The lease contracts contain fixed upward revision of the rental charges over the lease period. Future minimum rental receivables under non-cancellable operating leases at the reporting date but not recognised as receivables, are as follows: The Group 2017 2016 RM RM Not later than 1 year 3,968,019 3,862,630 Later than 1 year but not later than 5 years 17,176,433 16,723,873 Later than 5 years 44,933,116 49,322,226 66,077,568 69,908,729 Notes to the Financial Statements For the Financial Year ended 30 September 2017 192 MKH Berhad • Annual Report 2017