The Hindu Business Line : Jute Corpn likely to show robust growth

According to official sources, efforts that started during 2004-05 had already been reflected in last year's balance sheet that showed a marginal net profit of Rs 52.38 lakh.

"But this year would be much better because the company has been able to reduce overheads and the support extended by the Central Government through a tailor-made revival package at the beginning of the financial year," sources said.

For 2004-05, debts stood at Rs 6.28 crore and current liabilities were Rs 112.49 crore.

In the beginning of fiscal 2005-06, the Cabinet Committee on Economic Affairs approved the financial and functional restructuring of the company.

"This package had been critical for the company's revival which acts as the nodal agency for procurement and distribution of raw jute in the country," sources said.

The package included writing off the entire outstanding loan of Rs 195.68 crore, interest of Rs 313.97 crore and accumulated losses of Rs 144.17 crore.

Subsidy of Rs 301.88 crore that was receivable from the Government had also been settled during the year.

The financial restructuring of JCI through cleaning of its balance sheet and further strengthening its financial strengths has also been reflected through the fact that the company has reached a position to pay the dearness allowance to the employees from its own resources.

It is also playing a more effective role in maintaining the minimum support price for jute and also in stabilising prices through large-scale buffer stock operations during the year, sources said.