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FINANCIAL STATEMENTS
Axiata Group Berhad | Annual Report 2016
245
42. LIST OF JOINT VENTURES
The investments in joint ventures are as follows:
Name of company
Group’s effective ownership
interest
Principal activities
Country
and place of
incorporation
2016
2015
(%)
(%)
Joint ventures held through Celcom Axiata Berhad
PLDT Malaysia Sdn Bhd
49.00
49.00
Mobile virtual network
operator
Malaysia
Digital Milestone Sdn Bhd
1
51.00
51.00
Special purpose investment
company
Malaysia
Tune Talk Sdn Bhd
35.00
35.00
Mobile communication
services
Malaysia
Merchantrade Asia Sdn Bhd
20.00
20.00
Provision of money service
business, i.e. remittance
and money changing and
operator of mobile virtual
network
Malaysia
Joint ventures held through PT XL Axiata Tbk
PT XL Planet Digital
33.18
33.21
e-commerce
Indonesia
PT One Indonesia Synergy Tbk
33.18
-
Consultancy services
in future network
collaboration
Indonesia
Joint venture held through Axiata Digital Services
Sdn Bhd
Yonder Music Inc
27.03
27.03
Mobile-only digital music
download service
United States Of
America
1
On 20 April 2015, Digital Milestone commenced members’ voluntary winding-up pursuant to Section 254(1)(b) of the Companies Act, 1965. The
Winding-Up of Digital Milestone is expected to be completed upon obtaining the tax clearance from Inland Revenue Board of Malaysia.
43. RELATED PARTY TRANSACTIONS
All related party transactions were entered into in the normal course of business and at prices available at negotiated terms. The names of these
related parties, nature of these transactions and their total value have been set out in accordance with the provisions of MFRS 124: “Related Party
Disclosure”.
The Government of Malaysia and bodies controlled or jointly controlled by the Government of Malaysia are related parties of the Group. The
Government of Malaysia has significant influence over the Group. The Group enters into transactions with many of these bodies, which includes but
is not limited to:
– receiving telecommunications services, including interconnection revenue/charges
– purchasing of goods, including use of public utilities and amenities, and
– placing of bank deposits
The Group has established its procurement policies and approval processes for purchases of products and services, which do not depend on
whether the counterparties are government-related entities or not.
The Group provides telecommunications services as part of its ordinary operations. The Group has collectively, but not individually significant
transactions with Government-related entities. These telecommunication services are carried out on commercial terms that are negotiated and
agreed upon between the parties.