Hello
I tend to avoid these very extreme observations. A recent high court called people arrested by police with small quantities of narcotics as ” termites ” to whom no mercy should be shown.
In India we have come a long way since the 70s and 80s when almost all projects were bank or institution funded .
Today long term lending by institutional funding is almost dried up. . Industries where debt funding is needed where working capital or fixed capital needed yes. in such cases ROCE should be used to understand efficiency of capital used Other capital light industries … we need to use ROE.
This is a standard interview question I used to ask fresh Chartered accountants looking for first jobs. They would just repeat the formula and expect that be a right answer !!
Malolan
| Subscribe To Our Free Newsletter |
