The  company  is  in  forestry  and  woodworking  business. In 1997 tax

arrears  to state budget were capitalized at total amount of 64,272 Ls,

and  penalty  charges to the tune of 33,339 Ls were canceled (following

Cabinet regulations #265 of 16.07.1996 with regard to capitalization of

tax arrears to principal state budget. Company capital was increased by

the  capitalized  amount 64,272 Ls - there were shares issued in closed

issue.  They were sold on December 10, 1997, pursuant to the Management

Board resolution. In 1998

its is planned to invest 240

thousand  lats  in  production.  It  is  envisaged  to modernize timber

processing,  and  to  install  technological  equipment in the building

under  construction  "Angārs". 55 thousand lats will be spent in forest

planting  and  tending.  1997  profits  will be distributed as follows:

52,198  Ls  will  go  to  offset the losses made during previous years;

19,046  Ls  will  be  reserved  for working capital.; 30,000 Ls will be

reserved for investment purposes. In 1997

324 thousand lats were invested in production, which has resulted in an

increase in net turnover, and also an increase in profits.

A  profit  of  30,000  Ls  was generated from disposal of the old fixed

assets.