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FINANCIAL STATEMENTS
Axiata Group Berhad | Annual Report 2016
217
29. ASSOCIATES (CONTINUED)
The details of carrying amount of the associates of the Group are as follows:
2016
2015
Idea
RM’000
M1
RM’000
Others
RM’000
Total
RM’000
Idea
RM’000
M1
RM’000
Others
RM’000
Total
RM’000
Group's share of net assets
3,809,167 356,790
148,735 4,314,692
3,689,194
354,591
105,656 4,149,441
Goodwill
3,929,683 1,142,521
40,511 5,112,715
3,929,181 1,134,190
688 5,064,059
Accumulated impairment
losses (net of currency
translation differences)
(1,027,255)
-
- (1,027,255)
(1,005,014)
-
- (1,005,014)
At 31 December
6,711,595 1,499,311
189,246 8,400,152
6,613,361 1,488,781
106,344 8,208,486
List of contingent liabilities of an associate, Idea as at 31 December are as follows:
Description
Potential exposure
2016
RM’million
2015
RM’million
1.
One-off excess spectrum charges
On 8 January 2013, the local regulator, the Department of Telecommunications (“DoT”) had issued
demand notices towards one time spectrum charges:
(a) for spectrum beyond 6.2 MHz in respective service areas for retrospective period from
1 July 2008 to 31 December 2012, amounting to INR3,691.3 million, and
(b) for spectrum beyond 4.4 MHz in respective service areas effective 1 January 2013 till expiry of
the period as per respective licenses amounting to INR17,443.7 million.
In the opinion of the Directors, inter-alia, the above demand amounts to alteration of financial terms
of the licenses issued in the past. The Directors believe, based on independent legal opinion and its
evaluation, it is not probable that the claim will materialise and therefore, pending outcome of this
matter, no provision has been recognised.
1,396.2
1,365.3
2.
Tax notice
The Income Tax Department (‘‘Tax Department’’) had issued a INR15.0 billion and INR24.0 billion notice
on an associate. The Tax Department alleged that the licenses, assets and liabilities transferred in
between the companies in 2009 resulted in taxable capital gains which Idea and its subsidiary did not
treat as taxable.
On 19 October 2016, the Income Tax Appellate Tribunal has given its verdict in favour of ABTL which
there is no INR24.0 billion capital gain tax arising from the transfer of licenses, assets and liabilities. The
INR15.0 billion claim from the Tax Department remains outstanding as at year end.
In the opinion of the Directors, based on independent legal opinion and its evaluation, it is not probable
that the claim will materialise and therefore, pending outcome of this matter, no provision has been
recognised.
990.9
2,519.4