Not by Higher Prices Alone

Not by Higher Prices Alone Hansavivek NATIONAL NEWSPRINT AND PAPER (NEPA MILLS) has once again shown disappointing results for the year ended March last, with a lower gross profit despite higher sales. Production of newsprint was a little higher at 40,770 tonnes against 40,040 tonnes in the previous year, although it was far below the installed capacity of 67,500 tonnes. The surplus of Rs 2 lakhs was utilised to reduce the accumulated loss to Rs 80 lakhs. Equity dividend, last paid at a meagre rate of 4 per cent for 1967-68, is being once again skipped. Lower despatches notwithstanding, revenue from sale of newsprint increased because of the full year's effect of the increase in the selling price, revised from September 1971. The selling price has been further revised from October 1973 to Rs 1,500 per tonne for despatches up to the previous year's level and Rs 1,800 per tonne on increased despatches. The company is entitled to development rebate aggregating about Rs 147 lakhs, but no allocation has been made apart from Rs 23 lakhs set aside in 1968-69. There is a contingent liability of Rs 74 lakhs for higher payment of replacement cost to the forest department of MP on account of salai extracted from government forests from 1961 onwards. Also, the terms and conditions in respect of 46 additional bamboo felling areas allotted to the company for extraction of pulp wood have not been settled as yet and the additional liability, if any, has not been provided for. No provision has been made, moreover, in respect of future liability for gratuity estimated at Rs 34 lakhs.