Despite a sluggish year for paper, SPB managed to declare zero stocks and increase volumes. The actual sales in 1998-99 was 59,873 tonnes against 50,263 tonnes the previous year. These two factors helped SPB declare higher profits despite lower sales realisation. The other income was higher at Rs 11.81 crore compared to Rs 9.78 crore in the previous year.

Interest was marginally higher at Rs 7.37 crore (Rs 6.29 crore) as also depreciation at Rs 12.46 crore for 1998-99 (Rs 11.92 crore). Cash generation was higher at Rs 15.72 crore compared to Rs 13.05 crore in the previous year.

A term loan of Rs 146 crore was sanctioned by IDBI and othercommercial banks for the expansion and modernisation project out of which a sum of Rs 81.19 crore was drawn as of March 31, 1999. The total expenditure net of Modvat credit was Rs 80.44 crore, of which a sum of Rs 8.08 crore relating to modernisation was capitalised and the balance amount of Rs 72.36 crore was carried under capital work in progress. The working capital limits sanctioned by banks was used in full.

The company's expansion plans are progressing as on schedule. The expansion is from 60,000 tonnes per annum to 115,000 tonnes and it would be commissioned in December. It was to have been commissioned ahead of schedule, but the latest Exim policy announcement has put restrictions on import of second-hand capital goods. The project cost is likely to increase by Rs 20 crore on account of the weakening of the rupee by 20 per cent, the imposition of surcharge of 10 per cent on all imports, increase in rate of excise duty on indigenous capital goods from 13 per cent to 16 per cent, as also specialadditional duty at 8 per cent.