JSX suspends trading of Gresik shares<\/p>\n
Rendi A. Witular, Jakarta<\/p>\n
The Jakarta Stock Exchange (JSX) suspended trading in shares
\nof state-controlled PT Semen Gresik (SG), the country's largest
\nintegrated cement producer, after the firm's auditor issued
\ndisclaimers for its 2002 and 2003 financial accounts.<\/p>\n
JSX listing director Harry Wiguna said the suspension came
\nafter SG auditor PricewaterhouseCoopers (PwC) refused to give an
\nopinion on the firm's financial accounts due to unaudited
\nfinancial figures from the company's subsidiary, PT Semen Padang.<\/p>\n
"We have decided to suspend trading until shareholders receive
\nadequate clarification from SG regarding the audit problems,"
\nHarry said on Monday.<\/p>\n
Gresik shares were last traded at Rp 8,000 before the JSX
\nhalted trading during the morning session.<\/p>\n
Harry said the shares would be suspended until SG's annual
\nshareholders meeting on June 30 or until SG received a
\nsatisfactory opinion from PwC after completing the audit of Semen
\nPadang.<\/p>\n
In SG's financial accounts, PwC said that "because we were not
\nable to express an opinion on the consolidated financial
\nstatement of Semen Padang, the scope of our audit on SG was not
\nsufficient to enable us to express, and we do not express, an
\nopinion on SG consolidated financial statement for 2002 nor for
\n2003".<\/p>\n
SG president director Satriyo said the current financial
\naccounts submitted to the JSX were still preliminary as it was
\nstill waiting for the completion of the audit of Semen Padang,
\nwhich is expected to be completed in September or October.<\/p>\n
"The disclaimer opinion is not because of a deficiency on our
\npart, but because of continuing delays in the completion of Semen
\nPadang's special audit," Satriyo said on Monday.<\/p>\n
SG has been facing difficulties in finalizing its 2002
\nfinancial report, which in turn affected the completion of its
\n2003 report, due to problems with the rebellious West Sumatra-
\nbased Semen Padang, which has demanded that it be separated from
\nthe parent company.<\/p>\n
Satriyo said that due to the delay, the government was
\nplanning to change the composition of the company's current
\nmanagement.<\/p>\n
The government controls 51 percent of SG shares, 25.5 percent
\nis owned by Mexico cement giant Cemex SA and 23.5 percent by the
\npublic.<\/p>\n
The JSX has given until the end of this month for SG, along
\nwith state-owned telecommunications firm PT Telkom, to submit
\ntheir audited 2003 financial reports or risk being suspended from
\nthe index.<\/p>\n
Listed companies were meant to submit their 2003 audited
\nfinancial reports to the JSX by March 31, but some firms failed
\nto meet this deadline for various reasons.<\/p>\n
The JSX has issued several warnings to the companies that they
\nrisk being suspended or delisted if they do not submit the
\nreports.<\/p>\n
However, not all of the companies have been treated the same
\nby the JSX. Only SG and Telkom have received a dispensation to
\nsubmit their accounts by this month due to their large market
\ncapitalization in the bourse.<\/p>\n
Analysts have said the JSX's decision to extend the deadline
\nfor SG and Telkom meant other companies would be free to commit
\nviolations without fear of punishment.<\/p>\n
Harry said the JSX had decided not to delist SG because it
\nwould cause huge losses not only for the state but also
\ninvestors.<\/p>\n
"Delisting SG is not an option right now. The public should
\nconsider that delisting the company result in more losses than
\nbenefits," Harry said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-suspends-trading-of-gresik-shares-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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