According to the management, the loss was mainly due to the illegal strike resulting in lock out (which was lifted from January 22, 1999) at the factories of pulp and paper division with effect from November 15, 1998, the annual turnover of which constitutes about 16 per cent of the total turnover of the company. The working was also adversely affected due to adverse market conditions in respect of all the products.

The net sales/income from operations during the nine month amounted to Rs 1437.58 crore. It has suffered a gross loss of Rs 10.94 crore during the third quarter but earned a gross profit of Rs 22.69 crore during thenine month period.