Cordlife Group Limited
Annual Report 2016
109
Notes to
The Financial Statements
for the financial year ended 30 June 2016
36. Related party transactions
(a)
In addition to the related party information disclosed elsewhere in the financial statements, the following
significant transactions between the Group and related parties took place at terms agreed between the
parties during the financial year:
Group
2016
2015
$’000
$’000
Fees for providing training and technical know-how transfer to associate
Royalty income from associate
44
48
106
101
(b)
Compensation of key management personnel
2016
$’000
Group
2015
$’000
Salaries and bonuses
4,041
1,792
Defined contribution plans
128
86
Other short-term benefits
314
162
Share-based compensation
102
108
Directors’ fees
1,493
532
6,078
2,680
Comprise amounts paid to:
Directors of the Company
3,792
1,530
Other key management personnel
2,286
1,150
6,078
2,680
37. Financial risk management
The Group and the Company is exposed to financial risks arising from its operations and the use of financial
instruments. The key financial risks include credit risk, interest rate risk, liquidity risk and market price risk.
There has been no change to the Group’s exposure to these financial risks or the manner in which it manages
and measures the risks as summarised below:
Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default
on its obligations. The Group’s exposure to credit risk arises primarily from trade and other receivables. For
other financial assets (including cash and cash equivalents and fixed deposits), the Group minimises credit risk
by dealing with high credit rating counterparties. Other receivables that are neither past due nor impaired are
with credit-worthy debtors with good payment record with the Group. The Group’s maximum exposure to credit
risk is represented by the carrying amount of these financial assets.
Trade receivables comprise amounts due from parents and therefore the individuals cannot be subject to the
types of credit assessments that could be otherwise undertaken if dealing with a corporate entity. To mitigate
credit risk, receivable balances are monitored on a regular basis with the result that the Group’s exposure to
bad debts to date has not been significant. The nature of the cord blood banking business whereby the child’s
umbilical cord stem cells are stored with the Group reduces the likelihood of default in payment.
