FGV Annual Report 2015

340 Notes to the Financial Statements For The Financial Year Ended 31 December 2015 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 54 COMMITMENTS (CONTINUED) (b) Capital commitments Group 2015 2014 RM’000 RM’000 Capital expenditure approved and contracted for: - Property, plant and equipment 640,522 477,451 - Biological assets 65,377 22,351 - Intangible assets 114 - Capital expenditure approved but not contracted for: - Property, plant and equipment 1,242,182 508,144 - Biological assets 32,384 114,269 Investment in subsidiaries 1,265,750 - 3,246,329 1,122,215 55 CONTINGENT LIABILITIES (i) On 3 September 2010, FPISB and FELDA were sued by 514 settlers of Felda Serting Scheme and 252 settlers of Felda Gugusan Raja Alias Scheme in Jempol, Negeri Sembilan for alleged fraud and manipulation of the extraction rate for palm oil. The claim amounted to RM15.4 million for the year 2008 only. The learned Seremban High Court Judge on 26 June 2015 has dismissed the Plaintiffs’ claim with costs. The Court awarded costs of the sum of RM1,000 per Plaintiff, to be paid to the Defendants. There are 370 remaining Plaintiffs, from the original 766 Plaintiffs, as a portion of them have duly withdrawn and passed away. Therefore, costs awarded to the Defendants amounting to RM370,000. The learned Judge delivered her brief grounds of judgment, the Court found that the Plaintiffs have failed to prove their claim for fraud, conspiracy to defraud and breach of trust. On 22 July 2015, Defendants filed an appeal to Court of Appeal against the whole decision of the Seremban High Court. Plaintiffs’ Appeal was part heard on 19 February 2016. This matter now is fixed for continued hearing on Plaintiffs’ appeal on 13 and 14 April 2016. (ii) On 12 July 2011, FPISB and FELDA were sued by 711 settlers of Felda Jengka 1 to 25 and Felda Sg. Tekam in Temerloh, Pahang (Jengka A) for alleged fraud and manipulation of the extraction rate of palm oil. The claim amounted to RM22.9 million for year the 2008 only. This case was called for mention on 18 September 2013 and the Judge has ordered the Plaintiffs to determine who actually has the locus standi to sue in this suit and to determine which Plaintiffs have signed agreements with Felda. Trial of this case is now completed and both parties to submit written submission on or before 11 March 2016. The matter now is fixed for clarification on 29 April 2016.