Cement- Predictable Tactics


weakened the mill companies (see 'Self-Made Crisis', May 21, pp 818- 819). Having turned the mills into sick units to be nursed by banks and other institutions dabbling in public funds, the controlling blocks are making hay in new industries. An earlier Reserve Bank study had pointed out how arrears of preference dividend had been allowed to snowball. This too has been a method of diverting funds. These facts are being mentioned to indicate that the volume of new capital raised by itself is not an adequate indicator of growth. Financing of new industries today has taken diverse forms, including straightforward fudging of accounts, In a different context, ICICI chairman, H T Parekh, says as much in his annual statement for 1975-76: "It is well known that a part of the working capital was met through funds which were generally not recorded in the books of account".