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CORDLIFE GROUP LIMITED
| ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
11.
INVESTMENT IN ASSOCIATE
(CONTINUED)
Summarised financial information
The summarised financial information in respect of StemLife, based on its FRS financial statements and a
reconciliation with the carrying amount of the investment in the consolidated financial statements are as
follows:
StemLife
2015
2014
$’000
$’000
Summarised statement of financial position
Current assets
27,498
28,976
Non-current assets
5,976
6,001
Current liabilities
(24,946)
(2,362)
Non-current liabilities
–
(22,292)
Net assets
8,528
10,323
Proportion of the Group’s ownership
31.81%
31.81%
Group’s share of net assets
2,713
3,284
Goodwill on acquisition, net of impairment loss
8,483
10,603
Intangible assets on acquisition, net of amortisation
2,559
3,250
Unrealised share of other income from associate
(212)
(318)
Carrying amount of the investment
13,543
16,819
Summarised statement of comprehensive income
Revenue
2,192
1,324
(Loss)/profit for the year
(296)
58
Other comprehensive loss for the year
(310)
(1)
Total comprehensive (loss)/income for the year
(606)
57
Deferred tax on undistributed earnings of associate
Foreign-sourced dividends received or deemed received in Singapore by companies resident in Singapore is
exempt from tax in Singapore if the conditions under Section 13(8) of the Singapore Income Tax Act are met.
The earnings of StemLife are exempted from tax in Malaysia as StemLife is granted bionexus status by the
Malaysian Biotechnology Corporation Sdn. Bhd., where the business income is tax exempted for a period of
ten years beginning 2007.
As a concession under Section 13(8), the IRAS “subject to tax” condition is considered met if the specified
foreign income was not subject to tax in the foreign jurisdiction due to a tax incentive granted by the foreign
jurisdiction for carrying out substantive activities in that jurisdiction.
As of 30 June 2015, the Group has determined that it has met the conditions under Section 13(8), and hence
has not provided for deferred tax on the undistributed earnings of StemLife.
