112 / 284
Axiata Group Berhad | Annual Report 2016
GOVERNANCE
110
5. Recurrent Related Party Transactions of Revenue in Nature (RRPT)
[Disclosed in accordance with paragraph 10.09 (1) (b) and paragraph 3.1.5
of Practice Note 12, Main LR]
At the last AGM held on 25 May 2016, 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 26 April 2016 (RRPT Mandate). This RRPT Mandate is valid until the conclusion of Axiata’s
forthcoming 25th AGM to be held on 26 May 2017 (25th AGM).
Axiata proposes to seek a new RRPT Mandate at its forthcoming 25th AGM (Proposed Shareholders’ Mandate). The Proposed Shareholders’ Mandate,
details as provided in the Circular to Shareholders dated 27 April 2017 sent together with the Annual Report, if approved by the shareholders, would
be valid until the conclusion of Axiata’s next AGM.
Details of RRPT entered into during FY16 under the RRPT Mandate are as follows:-
Transacting
Companies
Transacting
Related
Parties
Interested
Major
Shareholder/
Director
Nature of Transaction
Value of
Transactions
RM’000
Axiata Group Telekom
Malaysia
Berhad and/or
its subsidiaries
(TM Group)
- Khazanah,
- Tan Sri Dato’
Azman Hj
Mokhtar
- Kenneth Shen
REVENUE
Telecommunication and Related Services
- Interconnect payment from TM Group
20,441
- Leased-line payment from TM Group
6,465
- Voice Over Internet Protocol related services revenue from TM Group
5,445
- Dark fibre and leased line from Celcom Group to Fibrecomm Network (M) Sdn Bhd
712
- Leased-line from Celcom Group to Fiberail Sdn Bhd
477
- Transmission revenue on the services by Axiata Group to TM
3,523
- Site rental payable for telecommunication infrastructure, equipment and related
charges by TM Group to Axiata Group
6,896
COSTS
Telecommunication and Related Services
- Interconnect cost to TM Group
17,295
- Voice Over Internet Protocol related services by TM Group to Axiata Group
12,594
- Leased-line costs to TM Group
10,052
- Provision of data and bandwidth related services by TM Group to Axiata Group
35,813
- Internet access and broadband charges by TM Group to Celcom Group
0
- Provision of contact centre and business process outsourcing services by VADS
Berhad to Axiata Group
67,024
- Leasing of fibre optic core and provision of bandwidth services from Fiberail Sdn Bhd
to Celcom Group
1,927
- Purchase of dark fibre, bandwidth, space and facility from Fibrecomm Network (M)
Sdn Bhd to Celcom Group
1,996
Non-telecommunications Services
- Site rental for telecommunication infrastructure, equipment and related charges by TM
Group to Celcom
93,821
- Rental of office premises payable monthly by Axiata Group to TM Group
13,978
TOTAL
298,459
6.
Status of Legalisation of Outdoor Structures
[Disclosed in accordance with letter from SC dated 12 February 2014]
Pursuant to the approval from Securities Commission Malaysia (SC) in 2008 in relation to, amongst others, TM Group’s demerger and the listing of
Axiata, Axiata is required to obtain the relevant approvals for the transmission towers and rooftop sites (Outdoor Structures) of Celcom Group within
two years from the date of the SC’s approval letter (Timing Conditions).
SC had, in 2010 and 2012, granted an extension of time for Axiata to comply with the Timing Conditions until 29 January 2012 and 29 January 2014
respectively.
Following the application submitted by CIMB Investment Bank Berhad, on behalf of Axiata, for further extension of time for the legalisation of the
remaining 28 Outdoor Structures, SC had, via their letter dated 12 February 2014, granted an exemption to Axiata from complying with the Timing
Conditions, subject to, amongst others, Axiata disclosing the status of the legalisation in its annual report until such time the necessary approvals are
obtained.
As at 31 March 2016, 21 Outdoor Structures remained to be legalised. Applications for nine sites are pending approval from local authorities with
one application in the process of finalisation for submission. Based on current regulations, the application for the remaining 11 sites could not be
submitted at this juncture to the local authorities.
ADDITIONAL COMPLIANCE INFORMATION