ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Soviet Union and the Third World

ing for the company's sales, debtors, creditors, production, stocks, excise duty, sales tax, costing and consumption of materials, and that "these figures have been reconstructed on the basis of certain other available records and on various assumptions" (emphasis added), have this to add: "However, it has not been possible to reconcile the consumption of raw materials, rejections and scrap with the reconstructed figures for production and stocks owing to the absence of reliable records .. . We are unable to state whether the profit and loss account gives a true and fair view of the results for the year ended on August 31, 1975, owing to the absence of reliable records," Assumptions, reconstruction and non- reconciliation notwithstanding, for 1974- 75 a dividend of 6 per cent and a bonus issue of three for ten (far less bountiful than had been expected by- subscribers to the Tri-Sure issue a year ago) have been proposed. (It should be noted that 90 per cent of the dividend distribution for 1974-75 would accrue to Tri-Sure's parent, American Flange.) On the capital as expanded by the proposed bonus issue, the company would have to pay in future a dividend of not less than 6 per cent That at any rate is what the management is promising. Do these proposals square with the assumptions, reconstruction and non-reconciliation? According to the present management, there has been a dislocation of business and expenditure caused "by the discovery of inflated figures in the company's account" (emphasis added). This had temporarily affected the cash flow. The temporary dislocation is sought to be set right by raising, according to the directors, the company's borrowing limit from Rs 50 lakhs "upto a continuous limit of Rs 125 lakhs". A nationalised bank. Bank of India, is Tri-Sure's banker.

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