Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 249 FINANCIAL STATEMENTS CORPORATE GOVERNANCE ANALYSIS OF SHAREHOLDINGS OTHER INFORMATION ANNUAL GENERAL MEETING ADDITIONAL DISCLOSURES TRANSACTIONS THROUGH MEDIA AGENCIES Some of the media airtimes, publications and programme sponsorship arrangements ("Media Arrangements") of the Maxis group are concluded on normal commercial terms with independent media-buying agencies whose role is to secure advertising or promotional packages for their clients. These Media Arrangements may involve companies in the Astro group which are licensed to operate satellite Direct-to-Home television and FM radio services, and undertake a number of other multimedia services in Malaysia. The transactions between the media-buying agencies and the Astro group are based on terms consistent with prevailing rates within the media industry. For the financial year ended 2012 the value of such transactions, which are not related party transactions entered into by the Maxis Group and the Astro group and excluded from the related party transactions disclosed elsewhere in this Annual Report, amounted to RM15,589,000. STATUS OF UTILISATION OF CORPORATE PROPOSALS On 24 February 2012, the Company made its first issuance under the Sukuk Programme of RM2.45 billion nominal value with a tenure of 10 years from the date of issue (“First Issuance”). From the proceeds from the First Issuance, RM1.45 billion was used for refinancing of the outstanding loans which were fully repaid on the same date, and RM1.00 billion was used for capital expenditure and working capital. IMPOSITION OF SANCTIONS/PENALTIES Malaysian Communications and Multimedia Commission (SKMM) has issued the following compounds on the respective subsidiaries of the Company:- (i) RM30,000 compounds on Maxis Mobile Services Sdn. Bhd. (“MMS”) for dropped calls on 4 March 2013; and (ii) RM150,000 and RM10,000 compounds on MMS and Maxis Broadband Sdn. Bhd. on 7 February and 8 March 2013 respectively for non-compliance with the prepaid registration guidelines. Save as disclosed above, there are no public sanction and penalties imposed on the Company or its subsidiaries, Directors or Management by the relevant regulatory bodies. EMPLOYEE SHARE OPTION SCHEME (ESOS) Please refer to the Directors’ Report (pages 87 and 88) and Note 31(b) (pages 159 and 161) of the Audited Financial Statements of this Annual Report. The ESOS implemented on 17 September 2009 is the Company’s only employee share option scheme currently in existence during the financial year ended 31 December 2012.