Spentex Industries Limited |
Regd. Off : A-60, OKHLA INDUSTRIAL AREA, PHASE - II, NEW DELHI - 110020. |
| UNAUDITED FINANCIAL RESULTS |
FOR THE QUARTER ENDED DECEMBER 31, 2007 |
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( Rs. in Lacs) |
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| PARTICULARS |
3 months ended (31/12/2007) |
Corresponding 3 months ended in the previous year (31/12/2006) |
Year to date figures for the current period ended (31/12/2007) |
Year to date figures for the previous period ended (31/12/2006) |
Previous accounting year ended (31/03/2007) |
| (Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
| 1 |
Net Sales/ Income from Operations |
19,527.83 |
19,711.65 |
55,847.36 |
53,495.10 |
75,241.00 |
| 2 |
Other Income |
441.53 |
523.34 |
3,074.57 |
2,028.75 |
3,549.57 |
| 3 |
Total Income (1+2) |
19,969.36 |
20,234.99 |
58,921.93 |
55,523.85 |
78,790.57 |
| 4 |
Expenditure |
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| a) |
(Increase) / decrease in stock in trade and work in progress |
(1,344.79) |
(740.67) |
(3,392.45) |
(3,139.45) |
(1,465.58) |
| b) |
Consumption of raw materials |
12,561.69 |
9,348.79 |
35,227.79 |
26,391.80 |
35,730.13 |
| c) |
Purchase of traded goods |
1,486.60 |
5,280.53 |
4,236.78 |
12,622.09 |
16,495.90 |
| d) |
Employees cost |
1,472.89 |
1,160.07 |
4,167.73 |
3,210.97 |
4,436.33 |
| e) |
Depreciation (including amortisation) |
1,055.23 |
921.47 |
3,173.96 |
2,719.71 |
3,569.74 |
| f) |
Power and fuel cost |
2,023.56 |
1,743.04 |
6,045.50 |
4,910.52 |
6,913.64 |
| g) |
Other expenditure |
2,409.75 |
1,170.00 |
6,801.81 |
5,027.39 |
7,873.69 |
| h) |
Total |
19,664.93 |
18,883.23 |
56,261.12 |
51,743.03 |
73,553.85 |
| 5 |
Interest |
1,611.47 |
1,146.04 |
4,897.65 |
3,113.50 |
4,618.71 |
| 6 |
Exceptional Items |
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- |
- |
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-- |
| 7 |
Profit(+)/Loss(-) from Ordinary Activities before tax (3)-(4+5+6) |
(1,307.04) |
205.72 |
(2,236.84) |
667.32 |
618.01 |
| 8 |
Tax expense |
(442.23) |
49.99 |
(709.11) |
144.52 |
198.12 |
| 9 |
Profit (+)/Loss(-) from Ordinary Activities after tax (7-8) |
(864.81) |
155.73 |
(1,527.73) |
522.80 |
419.89 |
| 10 |
Extraordinary Items (net of tax expense) |
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- |
- |
- |
-- |
| 11 |
Net Profit(+)/ Loss(-) for the period (9-10) |
(864.81) |
155.73 |
(1,527.73) |
522.80 |
419.89 |
| 12 |
Paid up Equity Share Capital (Face Value Rs. 10/-each) |
7,147.20 |
6,670.92 |
7,147.20 |
6,670.92 |
7,119.70 |
| 13 |
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year |
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-- |
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- |
11,268.87 |
| 14 |
Earning Per Share (EPS) (not annualized) (Rs.) |
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| a) |
Basic EPS before Extraordinary items for the period, for the year to date and for the previous year |
(1.21) |
0.23 |
(2.14) |
0.84 |
0.62 |
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Diluted EPS before Extraordinary items for the period, for the year to date and for the previous year |
(1.21) |
0.22 |
(2.14) |
0.78 |
0.62 |
| b) |
Basic EPS after Extraordinary items for the period, for the year to date and for the previous year |
(1.21) |
0.23 |
(2.14) |
0.84 |
0.62 |
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Diluted EPS after Extraordinary items for the period, for the year to date and for the previous year |
(1.21) |
0.22 |
(2.14) |
0.78 |
0.62 |
| 15 |
Public Shareholding |
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Number of Shares |
39,569,103 |
36,154,643 |
39,569,103 |
36,154,643 |
40,590,433 |
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Percentage of Shareholding |
55.36% |
54.20% |
55.36% |
54.20% |
57.01% |
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| 1 |
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The above results for the quarter ended December 31, 2007 were taken on record at the meeting of the Board of Directors held on January 31, 2008. The auditors of the Company have carried out a limited review of these unaudited results. |
| 2 |
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'Accounting Standard 15 (Revised 2005) on 'Employee benefits' issued by the Institute of Chartered Accountants of India is applicable to the Company with effect from April 1, 2007. The Company has provided for its liabilities on employee benefits based on its best estimates. As required under the standard, the Company is in the process of aggregating necessary information required to estimate the short term compensated absences. Accordingly, this standard will be adopted by the year end. Management does not expect the impact to be material as and when the standard is adopted. |
| 3 |
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'In accordance with the Accounting Standard 17 on Segment Reporting issued by The Institute of Chartered Accountants of India, the Company has identified three Business Segments viz., Textile Manufacturing , Textile Trading and Other Trading. Accordingly, Segment disclosure has been done. |
| 4 |
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Sales Tax Exemption for the Butibori unit of the Company had expired on December 31, 2005. The Company has applied for an extension of 3 years w.e.f. January 1, 2006 to the Development Commissioner (Industries), Government of Maharashtra and also filed a petition before the Hon’ble High Court, Nagpur to grant relief on the said matter. Based on the legal opinion obtained, the Company has accrued VAT receivable amounting to Rs.422.76 lacs for the period January 1, 2006 to December 31, 2007.On the basis that the sale tax exemption will be extended for a further period of 3 years w.e.f. January 1, 2006, Company has not made provision for sales tax (including interest) amounting to Rs.833.83 lacs payable on sales made during the above period including Rs.56.09 lacs for the quarter and Rs. 281.39 lacs for nine months ended December 31, 2007. This matter has been qualified in the auditor's review report for the quarter ended December 31, 2007. The management is hopeful of obtaining the exemption. |
| 5 |
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'There were no investor complaints pending at the beginning of the quarter, 20 complaints were received during the quarter and properly redressed and there were no complaints pending at the end of the quarter. |
| 6 |
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Net Sales / Income from Operations include:
i) income earned on 'Contract manufacturing' carried out for Bombay Dying and Manufacturing Company ('BDMC') amounting to Rs. 670.03 lacs for the quarter and Rs. 1,762.06 lacs for the nine months ended December 31, 2007 (corresponding previous quarter Rs. 317.38 lacs and Rs. 736.33 lacs for the nine months then ended)
ii) Duty drawback amounting to Rs.1,049.79 lacs for the quarter and Rs. 1,388.07 lacs for the nine months ended December 31, 2007 (corresponding previous quarter Rs. 209.47 lacs and Rs. 307.42 lacs for the nine months then ended) |
| 7 |
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During the quarter, the Company has terminated the contract manufacturing agreement with BDMC and purchased the assets from BDMC as on December 31, 2007 for Rs. 1,879.42 lacs (including VAT of Rs. 208.83 lacs), payable over a period of three years in 4 installments of Rs. 135.67 lacs, 562.50 lacs, Rs. 562.50 lacs and Rs. 618.75 lacs. |
| 8 |
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Spentex Tashkent Toytepa, LLC (subsidiary of the Company) has recorded Rs. 210 lacs as VAT refundable on cotton purchase as at December 31, 2007. These amounts have been recorded in respect of purchases where supplier invoices have not been received and is based on an estimate made by management of the historic ratio of input VAT in proportion to the total contract price of cotton purchased by the subsidiary.
The auditors have expressed their inability to comment on the recoverability of the above amount and accordingly qualified the matter in their consolidated review report for the quarter ended December 31, 2007. The Company is confident that the amounts are recoverable on the basis of estimates made by the management. |
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Consolidated figures for the corresponding quarter and nine months ended December 31, 2006 do not include results of Schoeller Litvinov, k.s. and its related entities. Accordingly, these results are not comparable with the current periods. |
| 10 |
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The Standalone financial results of the Company for the quarter and nine months ended December 31, 2007 will be available on the Company's Website and on the Website of BSE and NSE. |
| 11 |
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'Previous period figures have been regrouped wherever necessary, to conform to the current period presentation. |
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| BY ORDER OF THE BOARD OF DIRECTORS, |
| For SPENTEX INDUSTRIES LIMITED, |
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| MUKUND CHOUDHARY |
| MANAGING DIRECTOR |
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| Place : New Delhi |
| Date : January 31, 2008 |
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