Notes to the Financial Statements
(Cont’d)
For the year ended 30 April 2015
(In Singapore Dollars)
ANNUAL REPORT 2015
68
BUILDING ON OUR EXTENSIVE NETWORK
10. Taxation (cont’d)
Relationship between tax expense and accounting profit
The reconciliation between tax expense and the product of accounting profit multiplied by the applicable
corporate tax rate for the years ended 30 April 2015 and 2014 are as follows:
Group
2015
2014
$’000
$’000
Profit before taxation
3,480
10,573
Less: Share of results of joint ventures*
(89)
718
3,391
11,291
Taxation at statutory tax rate of 17% (2014: 17%)
576
1,919
Adjustments:
- Expenses not deductible for income tax purposes
631
123
- Effects of different tax rates in other countries
(114)
93
- Deferred tax assets not recognised in the current year
972
654
- Partial tax exemption and tax relief
(52)
(52)
- Write-back of deferred tax liabilities in relation to plant and equipment
–
(2,174)
- Withholding tax
263
–
- Others
(16)
(53)
- (Over)/under-provision of tax in respect of prior years
(483)
47
Taxation
1,777
557
* These are presented net of tax in profit or loss.
As at 30 April 2015, the Group, primarily through its subsidiary companies, has unutilised tax losses of
approximately $22,021,000 (2014: $16,821,000) which may, subject to the agreement with the relevant tax
authorities, be carried forward and utilised to set-off against future taxable profits. Except for an amount
of $4,257,000 (2014: $3,286,000) which would expire in between 2016 and 2023 (2014: between 2015
and 2022), there is no time limit imposed on the utilisation of the remaining tax losses. The potential tax
benefit of approximately $6,331,000 (2014: $4,957,000) arising from the unutilised tax losses has not been
recognised in the financial statements due to the uncertainty of its recoverability.
