Indonesia’s Semen Gresik delays audit report

Indonesia’s Semen Gresik delays audit report
Published: 26 March 2004

PT Semen Gresik said it will delay releasing its 2002 and 2003 consolidated financial reports by six months to after this September due to a request to widen the scope of a special audit at subsidiary PT Semen Padang.  In a statement to the Jakarta Stock Exchange, Indonesia’s largest cement firm said the delay will put it about seven months behind the bourse’s deadline on March 31.  "The extension of the audit as requested by the commissioners representing CAHL (Cemex Asia Holdings Ltd) will cause the completion of the general audit to be delayed until after September," the statement said.  Mexican firm Cemex SA owns a 25 per cent stake in Semen Gresik through Cemex Asia Holdings.  Semen Gresik has appointed PricewaterhouseCoopers to audit its 2002/2003 consolidated report.  The company obtained a disclaimer for its 2002 results report as it did not include the audit of West Sumatra-based unit Semen Padang.

Workers protesting the reshuffling of top management have blocked access to Semen Padang, whose board of directors and commissioners opposed a government plan to sell a 51 pct stake in Semen Gresik to Cemex.  However, the reshuffle also came amid reports of Semen Padang’s reckless spending, which forced the company seek assistance from parent Semen Gresik.Auditors regained access to Semen Padang in Sept 2003 after a court ruling threatened to impose sanctions against the old management if it refuse to step down.  The government then ordered Semen Padang to undergo a special audit.  Semen Gresik said its Cemex commissioners have now asked the special audit to also include Semen Padang’s entire operation and transactions with other affiliated firms.