Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 126 7 PROFIT FROM OPERATIONS (CONTINUED) The following items have been charged/(credited) in arriving at the profit from operations: (continued) Group Company Note 2012 2011 2012 2011 RM’000 RM’000 RM’000 RM’000 Government grant (20,707) (7,129) – – Interconnect expenses 856,419 752,481 – – Licenses and spectrum related fees under the Communications and Multimedia Act, 1998 143,011 138,011 – – Loss on disposal of property, plant and equipment – 1,761 – – Management fees charged by a subsidiary – – 12,742 11,743 Property, plant and equipment written off 132,835 40,647 – – Provision for: - network construction costs and settlements 28 4,100 – – – - site rectification and decommissioning works 28 – 901 – – - staff incentive scheme 28 50,092 49,314 – – Rental income from network cell sites (15,935) – – – Rental of land and buildings 52,566 56,120 – – Rental of equipment 18,068 20,012 – – Rental of network cell sites 248,962 246,765 – – Reversal of allowance for: - impairment of receivables, deposits and prepayments (20,072) (12,335) – – - inventories obsolescence (6,578) (1,165) – – Roaming expense 165,843 194,869 – – Service tax on mobile prepaid services 218,344 222,288 – – Staff cost: - Directors’ fees 8 2,768 2,760 2,768 2,760 - staff cost (including Executive Director’s salaries and other short-term employee benefits) 10 469,432 440,618 – – Universal Service Provision contributions 441,837 436,618 – – Write-back of provision for: - site rectification and decommissioning works 28 (1,440) – – – - staff incentive scheme 28 (9,017) (166) – – The Audit Committee, in ensuring the independence of the Group’s external auditors is consistently maintained, has set out clear policies and guidelines as to the type of non-audit services that can be offered as well as a structured approval process that has to be adhered to before any such non-audit services are commissioned. Under these policies and guidelines, non- audit services can be offered by the Group’s external auditors if the Group can realise efficiencies and value-added benefits from such services. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2012 Continued