Page 56 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
50
Corporate Governance Report
PricewaterhouseCoopers Zhong Tian LLP) as the auditors of
the Company for the financial year ending 31 December
2013 for Hong Kong financial reporting and U.S. financial
reporting purposes, respectively.
The Company has received a written confirmation from
KPMG that there are no matters that need to be brought to
the attention of the shareholders of the Company in
connection with the above change. The Board confirms that
there are no other matters that need to be brought to the
attention of the shareholders of the Company in connection
with the above change.
During the term of the appointment of KPMG as the
Company’s auditor, there were no disagreements or
unresolved matter between the Company and KPMG on any
matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure.
Other Stakeholders
Good corporate governance practices require due attention
to the impact of our business decisions on our shareholders
as well as other relevant stakeholders such as customers,
local communities, industry peers and regulatory authorities.
Our sustainability report for the year of 2012 (the “Sustainability
Report”), which is issued together with this annual report,
highlights our philosophy of corporate social responsibility
and our performance in the areas of social and
environmental management in 2012. This annual report and
the Sustainability Report illustrate our efforts and
development in the areas of industry development,
community advancement and environmental protection and
also explain how we have fulfilled our obligations to our
employees, customers, environment, local communities and
other stakeholders.
In 2012, we were recognized on the DJSI for the fifth
consecutive year, still the only company from Mainland
China listed on the DJSI.
The following table sets forth the types of, and fees for, the
principal audit services and non-audit services provided by
KPMG to the Group (please refer to note 5 to financial
statements for details):
2012 2011
RMB million RMB million
Audit fees1 87 84
Non-audit services fees2 14 12
1 Including the fees rendered for the audit of internal control over
financial reporting as required by section 404 of the SOX Act.
2 Including the fees for tax services, section 404 of the SOX Act
advisory services, risk assessment and other IT related advisory
services.
CMCC, our ultimate controlling shareholder, is a state-
owned enterprise regulated by the State-owned Assets
Supervision and Administration Commission ("SASAC") of
the State Council of China. Under the relevant requirements
by the Ministry of Finance and SASAC of China, there are
certain limits to the number of years for which an auditor
may continuously undertake financial auditing work in
respect of a state-owned enterprise and its subsidiaries (the
"SASAC Auditor Requirements"). In view of the SASAC
Auditor Requirements, the Company has reached a mutual
understanding with KPMG on the non-renewal of the
appointment of KPMG, the transitional arrangements and
other related matters, and agreed that after KPMG has
completed the audit work in respect of the Company for the
financial year ended 31 December 2012, the Company will
not re-appoint KPMG as its auditor for the financial year
ending 31 December 2013.
As recommended by the Audit Committee of the Company,
the Board has resolved to put forward an ordinary
resolution at our 2013 annual general meeting to appoint
PricewaterhouseCoopers and PricewaterhouseCoopers
Zhong Tian CPAs Limited Company (to be renamed as