Jute Corporation of India (JCI) is expected to announce substantial profits and present a debt free balance sheet for fiscal 2005-06.
It had been a loss-making unit for several years, and two years back, efforts were initiated for its revival.
The turnaround had already been reflected in last year's balance sheet which showed a marginal net profit of Rs 52.38 lakh, official sources said.
This year, due to support of Central Government through a tailor-made revival package, the company was able to reduce overheads, sources said.
Debts stood at Rs 6.28 crore in 2004-05 and current liabilities remained close to Rs 112.49 crore.
Cabinet Committee on Economic Affairs approved financial and functional restructuring of the company in beginning of fiscal 2005-06.
The package included writing off entire outstanding loan of Rs 195.68 crore, interest of Rs 313.97 crore and accumulated losses to the tune of Rs 144.17 crore.
Subsidy of Rs 301.88 crore to be received from Government had also been settled during the year.
The financial restructuring of JCI has strengthened company finances and is now able to pay dearness allowance to its employees from its internal accruals.
It is also able to maintain minimum support price for jute and stabilising prices through buffer stock operations during the year, sources said.
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