3.
DEPOSITORY RECEIPT PROGRAMME
Axiata did not sponsor any depository receipt program for the FY15.
[Disclosed in accordance with Appendix 9C, Part A item 16, Main LR]
4.
SANCTION AND/OR PENALTY
Throughout 2015, MCMC has issued several compounds (fines) to
mobile operators including Celcom for non-compliance to its strict
mandatory standards on prepaid SIM card registration and dropped
calls. In March 2015, Celcom has been imposed a compound amounting
to RM130,000 on cases involving dropped calls and RM200,000 on
cases related to prepaid SIM card registration. Further, in September
2015, total compound of RM300,000 was imposed upon Celcom for
SIM card registration related offence. In December 2015, Celcom was
served five compounds amounting to RM230,000 for the offence of
false registration of prepaid SIM cards. Celcom is taking necessarily steps
to prevent future false prepaid registration via its agents and dealers.
On 18 June 2008, the Business Competition Supervisory Commission
(KPPU) has ruled to penalise XL, PT Telkom, PT Telkomsel, Bakrie
Telekom, Mobile-8 Telecom and Smart Telecom on SMS cartel case.
KPPU has instructed XL to pay a fine of IDR25 billion. XL has appealed
to the South Jakarta District Court on 9 July 2008. The Central
Jakarta District Court heard the case and has ruled in operators’
favour. Nevertheless, following the resolution, KPPU presented the
cassation to the Supreme Court. On 1 March 2016, the Supreme Court
upheld KPPU’s verdict. XL is allowed to exhaust every available legal
avenues in pursuing a favourable outcome. At the point of writing, XL
is considering its legal options.
[Disclosed in accordance with Appendix 9C, Part A item 17, Main LR]
5.
NON-AUDIT FEES
The amount of non-audit fees incurred for the services rendered
to Axiata and the Group by its external auditors, Messrs
PricewaterhouseCoopers and its affiliated companies for the FY15 are
RM3,947,735 and RM11,767,978 respectively.
Services rendered by PricewaterhouseCoopers are not prohibited
by regulatory and other professional requirements, and are
based on globally practiced guidelines on auditors independence.
PricewaterhouseCoopers was engaged in these services when their
expertise and experience of Axiata are important. It is also the Group’s
policy to use the auditors in cases where their knowledge of the Group
means it is neither efficient nor cost effective to employ another firm of
accountants.
[Disclosed in accordance with Appendix 9C, Part A item 18, Main LR]
6. VARIATION IN RESULTS
There were no profit estimates, forecasts or projections made or
released by Axiata for FY15.
[Disclosed in accordance with Appendix 9C, Part A item 19, Main LR]
7.
PROFIT GUARANTEE
There were no profit guarantees given by Axiata for the FY15.
[Disclosed in accordance with Appendix 9C, Part A item 20, Main LR]
8.
MATERIAL CONTRACTS INVOLVING DIRECTORS’/MAJOR
SHAREHOLDERS’ INTEREST
There were no material contracts of Axiata and/or its subsidiaries
involving directors’ and major shareholders’ interests either subsisting
as at 31 December 2015 or entered into since the end of FY14.
[Disclosed in accordance with Appendix 9C, Part A item 21, Main LR]
9.
UTILISATION OF PROCEEDS
USD500 million MTN Sukuk was issued on 19 November 2015, and
the utilisation of the proceeds is to fund Merger and Acquisition and
working capital requirement.
[Disclosed in accordance with Appendix 9C, Part A item 13, Main LR]
10. RECURRENT RELATED PARTY TRANSACTIONS OF REVENUE IN
NATURE (RRPT)
At the last AGM held on 20 May 2015, Axiata has obtained a general
mandate from its shareholders for the Group to enter into RRPT with
related parties as set out in the Circular to Shareholders dated 28 April
2015 (RRPT Mandate). This RRPT Mandate is valid until the conclusion
of Axiata’s forthcoming 24th AGM to be held on 25 May 2016 (24th
AGM).
Axiata proposes to seek a new RRPT Mandate at its forthcoming 24th
AGM (Proposed Shareholders’ Mandate). The Proposed Shareholders’
Mandate, details as provided in the Circular to Shareholders dated 26
April 2016 sent together with the Annual Report, if approved by the
shareholders, would be valid until the conclusion of Axiata’s next AGM.
Pursuant to paragraph 10.09 (2) (b) and paragraph 3.1.5 of Practice
Note 12 of the Main LR, details of RRPT entered into during FY15 under
the RRPT Mandate are as follows:-
axiata group berhad | annual report 2015
090
ADDITIONAL COMPLIANCE
INFORMATION
