Century Textiles announces Q3 net profit of Rs.33.93 Crores, manufacturing stopped at Worli plant

Century Textiles & Industries Ltd has announced the following Unaudited results for the quarter ended December 31, 2006:

The Company has posted a net profit of Rs 339.30 million for the quarter ended December 31, 2006 where as the same was at Rs 303.30 million for the quarter ended December 31, 2005. Total Income (net of excise) is Rs 8133.30 million for the quarter ended December 31, 2006 where as the same was at Rs 6994.80 million for the quarter ended December 31, 2005.

1. Under the accounting treatment permitted by the revised Accounting Standard - 15 on Employee Benefits, payments under the VRS will be charged to expenditure over the four accounting years ending March 31, 2010. On this basis, the amount to be charged in the accounts for the year ending March 31, 2007 is Rs 713.10 million of which the proportionate amount upto December 31, 2006, Rs 534.80 million has been charged in the current quarter and Rs 178.30 million will be charged in the quarter ending March 31, 2007. In addition an amount of Rs 34.40 million has been charged in previous quarters in respect of a prior VRS.

2. Consequent on the acceptance of the VRS, certain gratuity and other exits payments have been made, amounting in total to Rs 612.60 million. Since this liability crystallised in November — December 2006, the Company has charged half the amount viz. Rs 306.30 million to the accounts for the current quarter and the balance of Rs 306.30 million will be charged in the succeeding quarter.

As a result of the virtual cessation of manufacturing operations at the Textile Mill at Worli and the charges mentioned in 1 and 2 above, the results for the quarter ended December 31, 2006 are not comparable with those of prior corresponding periods.

Source : Equity Bulls

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