The question I would ask is why is umask being set in the /etc/profile file?
The umask setting in /etc/security/user will define the initial umask setting for that user when he logs in. Should the umask command then be run, this will supercede the current setting.
By calling umask in /etc/profile , the users umask setting is being overrided by that in /etc/profile for any user using a shell which makes use of it.
I would suggest taking it out of /etc/profile altogether
Dave