Directors - Boustead Holdings Berhad

37. SALE AND LEASEBACK OF PLANTATION ASSETS (cont’d.)
The non-cancellable operating lease commitments arising from the above Ijarah arrangements are as
follows:
Group Company
2006 2005 2006 2005
RM’000 RM’000 RM’000 RM’000
Within 1 year 101,066 68,909 3,658 3,853
Later than 1 year and not later than 5 years 376,876 249,818 10,647 14,305
Later than 5 years 920,556 101,231 –– ––
1,398,498 419,958 14,305 18,158
38. CONTINGENT ASSET
A Subsidiary has lodged appeals against the valuations adopted by the Government on the compulsory
acquisition of 750 hectares of estate land. The dispute on the quantum of any additional compensation
has not been settled and the potential benefit if any, has not been included in these financial statements.
39. CONTINGENT LIABILITIES
(a) There is a pending claim against a Subsidiary for goods sold, delivered and invoiced together with
costs and interest. The Subsidiary had denied the claim and filed a counterclaim together with further
cost and interests. The Directors, in consultation with legal counsel, are of the opinion that the claim
is without merit and no provision is required.
(b) A Subsidiary has an obligation to settle a bank loan totaling RM30 million which was assigned to a
fellow Subsidiary that was subsequently disposed in the previous financial year. Subsequent to year
end, the obligation has lapsed as the bank loan was fully settled on 31 January 2007.
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