Total income during the year was Rs 2,470.15 crore, up from Rs 2,363.23 crore in the previous year. Total income includes other income to the tune of Rs 48.31 crore, as against Rs 102.92 crore in the previous year.

Interest and finance charges have increased substantially by 32 per cent, from Rs 414 crore to Rs 546 crore in the current year.

Interest burden in the fourth quarter has shot up by 164 per cent and stood at Rs 264 crore up from Rs 101 crore in the corresponding quarter of the previous year.

According to Essar sources some ancillary plants were commissioned during the fourth quarter as a result of which the interest cost on funds raised to establish them had to be debited to the revenue account which was capitalised earlier. Also Essar has the policy of charging interest cost on six monthly loans taken by them in the fourth quarter and it does not apportion it throughout the period of the loan.

The company has achieved significant improvement in working capital management by reducing both inventory and receivables. The working capital borrowings at the end of the year stood at Rs 497 crore as compared to Rs 727 crore at the end of the previous year.

The plant capacity has been enhanced from 2 to 2.4 mmtpa and the production plan of 2.2 mmtpa has been set for the year 2000-2001. This would mean a 44 per cent increase in the production over the year 1999-2000 with further modifications under way, a company press release said. "The company expects to turn around in this year and seeks to generate cash profit to the tune of Rs 350 crore. Also, it proposes to reduce the cost of debt by repaying debt to the extent of Rs 1,000 crore through disinvestment in its assets and investments which will be used for repayment of high cost loans" , a senior Essar official said.