KUALA LUMPUR (Sept 22): StemLife Bhd said independent auditor Ernst and Young's qualified opinion on the group's financial statements was in reference to its investment in its associate, Thai StemLife Co Ltd."We wish to clarify that the qualified opinion expressed by Ernst & Young was only in respect of items relating to StemLife's investment in its associate, Thai StemLife," it said in a bourse filing today. The company's investment in Thai StemLife is carried at RM Nil (RM945,000 on Dec 31, 2014 and Jan 1, 2014) in the statement of financial position as at June 30, 2016. "During the current financial period, the group and company have recognised an impairment loss in the income statements of RM1.17 million and RM945,000, respectively," Ernst & Young said. "(And) we were unable to assess the reasonableness of the cash flow projection of the associate for impairment assessment in view of the limitations on the reliability of the historical financial information of the associate," Ernst & Young said. Except for the possible effects of the matters described above, the financial statements give a true and fair view of the financial position of the group and company as at June 30, 2016.

Source: The Edge Markets September 22, 2016 15:22 UTC