New Delhi, Delhi, India
Goetze India Ltd. (GIL) Board of Directors have announced the audited financial results for the year ending March 31, 2006 with a net loss of Rs. 42.45 crores before tax and a net loss of Rs. 50.56 crores after tax. The total turnover in the year ending March 31, 2006 was Rs 528.93 crores as against Rs511.70 crores in the previous year, registering a growth of 3 percent.
GIL's management expects continued growth in the business, both from domestic as well as export demand. However, steadily increasing and currently high volatile commodity prices are a cause of concern for the company. Goetze India Ltd. intends to further invest in its manufacturing and engineering capabilities, enabling the development and manufacture of products using state-of-the-art technology.
"In order to finance the expected growth, as well as the ongoing move toward state-of-the-art technology, GIL is considering a rights-issue in the scope of up to Rs.100 crores," said Arun Anand, GIL's Managing Director and Chief Executive Officer. "Our Board of Directors and Federal-Mogul Corporation's senior managers have entrusted GIL's management to allow for an equity infusion during the second half of 2006."
Further commenting on the audited results, Anand said, "These results include a large element of one-time accounting adjustments, which won't reoccur in future years. It is important to note that these changes do not affect GIL's cash flow or operational earnings."
Another change is in the area of miscellaneous expenditure, which mainly includes voluntary retirement schemes, etc. In previous years, these items were written off over a period of 60 months. From this point going forward, these items will be written off at the time of the expense. Accordingly, the opening balance under this heading had been totally written off during the year.
During the year, a provision has also been made for the impairment of certain assets, investments and inventories to bring down their carrying values. Similarly, a charge has been taken on account of a deficit in the superannuation fund which pertains to the previous years.
Goetze India Ltd.
Goetze India Limited (GIL) was established in 1954. Federal-Mogul Corporation, a $6.3 billion (U.S.) company and one of the largest manufacturers of automotive components in the world, owns 50.1 percent of share in GIL.
GIL is the largest manufacturer of pistons and piston rings in India, with an annual production capacity of 53 million piston rings and 11 million pistons, respectively.
Arun Anand , Goetze (India) Limited, +91 (011) 41497600 info@goetzeindia.net
Rakesh Thukral, Comma Consulting, +91 (011) 41354402 / 9811039574 rthukral@comma.in
Source: Goetze (India) Limited (Business Wire India)
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