AC220 - BACHELOR IN ACCOUNTANCY

CRG650 - BUSINESS ETHICS AND CORPORATE GOVERNANCE

ANNUAL REPORT ANALYSIS

GROUP: NACAB7B

NAME STUDENT ID

ALIAA BINTI RAHMATULLAH 2020779795

HANINA BINTI HASHIM 2020442496

NURAFIQAH BINTI AFFANDI 2021654652

NURUL AMIRAH BINTI MOHD YUNUS 2019813232

PREPARED FOR:

PN AZNIZAI BINTI MOHAMAD

Information to analyze (25 marks) Answer (Arial 11, Font Colour: Black). Indicate page

1
Total marks will be converted to
15%.
Name of the company’s annual
report (1m)
State the financial accounting period
year end (1m)
Cover Page Rationale (if any) (1m)
Search the info at the back of the
cover page. Is there any detailed
explanation on what the cover page
symbolizes?
Mission/Vision Statement (if any)
(1m)
Analyze the Auditor’s Report
▪
Name the external auditor (1m)
Reminder: Please specify N/A if the information is not provided in number in the
Annual
the Annual Report chosen. A zero mark for spaces left blank. Report (AR)
Sust R (SR)
Telekom Malaysia Berhad 2022 Integrated Annual Report
Corporate Overview (IAR) and Financial Statement (FS)
31 December 2022
Explanation on cover page rationale: (if any) Please use your own
word to explain:
TM is entering its next phase as a technology company that prioritizes
humanity, building upon its strong foundation and rich history. Our goal
is to shape a Digital Malaysia that empowers all, including communities,
businesses, and the government. While we have already made
significant strides, our journey is far from over and is just beginning. Our
utilization of technology aims to create a better future for everyone. As
Future Shapers, we strive to connect our stakeholders with
opportunities through innovative solutions to help them achieve their
goals. This annual report showcases images that illustrate our
dedication. For communities, we offer integrated lifestyle solutions to
enhance everyday experiences. For businesses, we foster growth
through strategic collaborations and comprehensive solutions that drive
business transformation. And for the government, we accelerate the
realization of a Digital Malaysia by providing holistic connectivity,
platforms, and digital solutions. Inspired by our futuristic vision, our
combination of real-life photos and illustrations represents both the
present and the future, showcasing our range of digital solutions that not
only accelerate a Digital Malaysia but also prioritize the sustainability of
our planet.
If available, does the Mission/Vision Statement relate to: (IAR)
PAGE 6
Theory of (If Yes, which sentence from the
Governance Mission/Vision statement evidences
this?)
Shareholder Theory? • The statements offered do not heavily stress
(Indicate by the importance of shareholder value or give
highlighting the word precedence to the needs of shareholders above
Mission and/or Vision other stakeholders. Therefore, there is not a
strong presence of Shareholder Theory.
Statement to show
where this theory is
applicable)
Stakeholder Theory? • The inclusion of the phrase
(Indicate by "technology that empowers communities,
highlighting the word businesses & Government" in the Vision
Mission and/or Vision statement demonstrates a dedication to various
stakeholders.
Statement to show • Within the Mission statement, the
where this theory is phrases "Humanizing technology and making it
applicable) accessible to all Malaysians" and "For
communities, we enrich everyday moments"
highlight a stakeholder-oriented approach.
The external auditor is: Ernst & Young PLT (EY) (FS)
PAGE 156
2

▪ Name the partner that signs the
audit report (1m)
▪ The type of auditor’s opinion:
Unqualified or Qualified audit
report? (1m)
▪ The sentences that justify the
type of auditor’s opinion as
stated above (1m)
Study the Audit Committee
Is the composition of Audit
Committee of the company follows
as what is stated in MCCG2021?
(1m)
The Audit Committee should comprise
solely of Independent Directors (MCCG
2021)
State the composition of executive &
independent non-executive directors
that make up the Audit Committee.
(2m)
Identify the qualifications of audit
committee members (1m)
List other BOD
Committees/Management
Committees in the company (3m)
Study the CSR Disclosure
Identify & explain any one CSR
activity /Sustainability disclosure
reported by the company.
(3m)
Go to the Section on Statement on Corporate Governance or the Chairman’s Statement or any available
pages & study the following information about the BOD:
The name of partner who signs the audit report is: (FS)
Ahmad Zahirudin Bin Abdul Rahim PAGE 156
02607/12/2024 J
Chartered Accountant
Type of audit opinion given by the external auditor: FS
Unqualified audit report (PAGE
156)
Extract the sentences from the Auditor’s Report to reflect the type (FS)
of auditor’s opinion as you have stated above: Page 153
“In our opinion, the accompanying financial statements give a true and
fair view of the financial position of the Group and of the Company as at
31 December 2022, and of their financial performance and their cash
flows for the year then ended in accordance with Malaysian Financial
Reporting Standards, International Financial Reporting Standards and
the requirements of the Companies Act 2016 in Malaysia.”
(IAR)
Underline your answer: Yes or No Page 4
No
Composition of Audit Committee: (IAR)
Number of Executive Director: 1 Page 164
Number of Independent Non-Executive Director: 4
State the type/s of academic/professional qualification the (IAR)
members of audit committee: Page 164
1. Tunku Afwida Tunku Dato’ A.Malek (MIA, ICAEW)
2. Rossana Annizah Ahmad Rashid (CPA)
BOD Committee/s other than the Audit Committee: (IAR)
1. Nomination and Remuneration Committee Page 151
2. Board Tender Committee
3. Board Risk Committee
CSR done by Telekom Malaysia is building Yayasan Telekom (FS)
Malaysia (YTM) where YTM has created value through Future PAGE 134
Leaders Scholarships Programme. Through this programme, 230 &
new scholarships were awarded with 100% of YTM scholars PAGE 138
employed within 6 months of graduating. Another contribution is
through Humanitarian Aid during big floods 2022 in Kelantan and
Terengganu by providing Preparedness Training to NGO that are
arranged to be on duty during floods.
3

● BOD’s size (total number of
BOD) (1m)
● the BOD composition (number of
executive directors & number
non-executive directors) (1m)
● is there any declaration on
conflict of interest made by the
BOD? (Is there any statement
made by BOD stating that they
are free from conflict of
interest?) (0.5m)
● how much is the remuneration of
the BOD (If it is disclosed, write
the one amount which is the
highest) (0.5m)
● the attendance to board meeting
(minimum 50%-Bursa Malaysia
Listing Requirements & at least
75%- Bank Negara Malaysia
guideline). (2m)
● is there any BOD who is a ‘kaki
ponteng’ ? if any) (1m)
● Is the duality role applicable?
(Applicable when one person
holding two different roles; the
(IAR)
Total number of BOD: 12 PAGE 226
(IAR)
Composition of BOD: PAGE 226
Number of Executive Director: 1
Number of Non-Executive Director: 11
Is this an ideal composition? Underline your answer: Yes or No
and Justify your Yes or No.
I personally think that the composition is not ideal as there are only one
executive director that is involved in day to day management.
Availability of BOD Declaration on Conflict of Interest: Yes or No? (IAR)
PAGE 186
If Yes, provide one statement as example.
Yes, “save as disclosed, none of the directors has any conflict of
interests with telekom malaysia”
TOTAL REMUNERATION + BENEFITS RECEIVED (WRITE THE (IAR)
NAME OF THE BOD) =RM PAGE 161
RM 3,687,215 + RM 282,556.83 (Dato’ Shazril Imri Mokhtar) = RM
3,969,771.83
Do you like the pay? If you like, you must also love the responsibilities!
(IAR)
Any 2 BOD that have recorded full attendance to board meeting: PAGE 151
2 Names Total attendance
recorded
Tan Sri Mohammed Azlan Hashim 100%
Dato’ Imri Mokhtar 100%
Is there any BOD who is a ‘Kaki Ponteng’? (fail to attend all or (IAR)
attending less than half to board meeting). Before you finalize your PAGE 153
decision, recheck the reasons/rationales (if any) for inability to
record good attendance. Write the reasons/rationales in a bracket
after the BOD’s name.
Name (reasons/rationales for inability to Total attendance
record good attendance - if any) recorded
Hisham Zainal Mokhtar (No reason specified) 17/18
Saheran Suhendran (No reason specified) 17/18
Datuk Siti Zauyah Md Desa (No reason 17/18
specified)
Duality Role: Underline your answer: Yes or No (IAR)
PAGE 226
Name of Chairman: Tan Sri Mohammed Azlan Hashim
Name of CEO: Dato’ Imri Mokhtar
4
Chairman is also the CEO). (1m)