218 Annual Report 2021 40. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR AND SUBSEQUENT EVENTS (CONT’D) (ii) In Indonesia, on 31 March 2020, the Indonesian Government declared the COVID-19 pandemic as a national public health emergency, where the government imposed largescale social restrictions (“PSBB” - Pembatasan Sosial Berskala Besar) to curb the spread of the COVID-19 outbreak in Indonesia. Subsequently, Indonesia implements Restriction on Public Activities in the Micro Scale (“PPKM Mikro” – Pemberlakuan Pembatasan Kegiatan Masyarakat berskala mikro) for selective regions. On 6 December 2021, the Indonesia Government has introduced PPKM Level 3, Level 2 and Level 1 in accordance with the criteria for the level of the COVID-19 pandemic situation. T he disruption in the Group’s operations in Indonesia was minimal as the Group’s mills and estates operation internally were not affected by the PPKM. The mills and estates were allowed to continue its normal business operation during the PPKM. A t the reporting date, the Group is in a net asset position of RM1,706,069,002 with an amount of RM427,546,675 cash, bank balances, terms deposits and fixed income funds. T he Group performed an assessments on the overall impact of the situation on the Group’s operations and financial implications, including the recoverability of the carrying amount of assets and subsequent measurement of assets and liabilities, and concluded that there is no material adverse effect on the financial statements for the financial year ended 30 September 2021, after considering key source of estimation uncertainties as disclosed in Note 2(c). A s the COVID-19 situation is evolving, the Group will monitor the situation closely and take the necessary actions to minimise the impact of the COVID-19 on the Group’s operations and financial performances. The Group is of the view that the impact of COVID-19 is short term and expects that the business operations will return to normal when the COVID-19 vaccination program is being rolled out progressively nationwide and lockdowns are fully relaxed. 41. 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 2021 2020 RM RM Not later than 1 year 4,492,119 4,535,319 Later than 1 year but not later than 5 years 16,833,196 18,314,260 Later than 5 years 28,312,265 31,327,730 49,637,580 54,177,309 Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2021
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