ANDHRA PAPER-Raw Material Shortage

previous year following decline in turnover from Rs 96.42 crore to Rs 84.22 crore. Net profit is Rs 1.03 crore against Rs 2.23 crore and dividend is reduced from 17 per cent to 15 per cent. It may, however, be mentioned that the company has recalculated custom duty payable for 1984-85 and 1985-86 and the resultant claims for refund of excess duty of Rs 298.34 lakh has been credited to profit and loss account. Moreover, excess depreciation of Rs 50.15 lakh provided earlier has been written back. But for these adjustments in the accounts, there would have been a loss for 1986-87. The company has revalued plant and machinery on the tapis of market value as on April 1, 1986 and net surplus of Rs 10 crore arising on revaluation has been credited to revaluation reserve. The directors say that the availability of steel hot rolled coils was difficult and production of water and gas tubes was lower by 18 per cent and their turnover by 15 per cent compared to the previous year. The precision tubes division made a breakthrough in the development of business with two-wheeler manufacturers having Japanese collaboration, but the availability of necessary raw materials proved a constraint. The output of the division slipped by 7 per cent, although its turnover increased by 2 per cent compared to the previous year.