Jurong Cement share premium overstated

Jurong Cement share premium overstated
Published: 02 June 2004

An incorrect accounting treatment made in the 1997/1998 accounts has resulted in an overstatement of Sin$13.35 million in Jurong Cement’s share premium in associated companies. Calling it ’an innocent and isolated oversight’, a company spokesman told local reporters.  In a statement dated May 31 and posted on Masnet yesterday, Jurong Cement said: ’During the current year’s audit, the auditor informed the company that a consolidation adjustment passed through in the 1997 and 1998 accounts
resulted in an overstatement in Jurong Cement group’s share premium account by Sin$13,353,120.’

The overstatement arose through an audit adjustment of Sin$8.09 million and Sin$5.26 million in 1997 and 1998 respectively to recognise the group’s share of an associated company’s share premium account. The associated company involved is Sin Chang An Holding Pte Ltd, which has three plants in
Zhejiang, China.

For the year ended March 31, 2004, Jurong Cement narrowed its loss to Sin$2.86 million from Sin$5.1 million despite higher raw material prices and revenue falling from Sin$63.9 million to sin$61.6 million. The narrowing in loss came amid a steady increase in the selling prices of cement and specialised cement products.