Overview Our Business
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175
Notes to the Financial Statements
31 December 2015
37 CONTINGENT LIABILITIES
In the normal course of business, there are contingent liabilities arising from legal recourse sought by the Group’s and the Company’s customers or
vendors, indemnities given to financial institutions on bank guarantees and claims from the authorities. There were no material losses anticipated
as a result of these transactions.
38 SIGNIFICANT EVENT DURING THE FINANCIAL YEAR
On 2 December 2015, the Company announced a proposed internal reorganisation involving its subsidiaries which will result in the consolidation
and integration of the business and undertakings of the Company’s wholly-owned subsidiaries, namely Maxis Collections Sdn. Bhd., Maxis
International Sdn. Bhd., Maxis Mobile Sdn. Bhd. and Maxis Mobile Services Sdn. Bhd., under Maxis Broadband Sdn. Bhd. (“MBSB”) (“Proposed
Internal Reorganisation”). In order to effect the Proposed Internal Reorganisation, MBSB on the same day, entered into separate sale and purchase
agreements with the respective entities to purchase their businesses and undertakings including relevant assets and liabilities.
The Proposed Internal Reorganisation is another important step of the Group’s transformation. The objective is to deliver operational efficiency
and provide the Group with greater operational agility and flexibility to respond quickly in a fast evolving telecommunications market.
Barring unforeseen circumstances, and subject to the fulfilment of applicable conditions precedent, the Company expects to complete the Proposed
Internal Reorganisation within the first half of year 2016.
39 EVENT AFTER THE FINANCIAL YEAR
On 1 February 2016, the Group received a notice of spectrum reallocation of 900 MHz and 1800 MHz bands from Malaysian Communications and
Multimedia Commission (“MCMC”), which would reduce the spectrum available to the Group. The Group noted MCMC’s decision to convert the
annual Apparatus Assignment fee to an upfront Spectrum Assignment fee with long-term certainty for the spectrum and that MCMC recognises
this fee needs to be seen in the perspective of the continuous high investment level the industry will need to reach national goals.
The Group will consider the impact of the above changes once a detailed review is carried out with better clarity on the matter.
40 APPROVAL OF FINANCIAL STATEMENTS
The financial statements have been approved for issue in accordance with a resolution of the Board of Directors on 4 February 2016.
