Seamless intimate apparel producer Tefron Ltd has restated its 2003 financial statements to correct amounts previously reported for the amortisation of government grants.

The company's cost of sales will subsequently increase by around $1.3 million, and net loss for the year ended 31 December will increase by approximately $1.0m to about $4.5m.

Cost of sales between 1996 and 2000 will decrease in the aggregate by around $1.3m, with net income for that period increasing in the aggregate by approximately $1.9m.

The company has said that it doesn't expect this to influence its financial results recorded after 31 December, 2003.

Tefron makes seamless intimate apparel for Victoria's Secret, Target, Warnaco/Calvin Klein, The Gap, Nike and Adidas.