Hiding the cash stack

Listed companies often like to flaunt the cash on their balance sheets. Not if you are a public sector enterprise, whose managers are trying to hide their cash from the owners. Recently, the government announced it plans to ask the companies it owns to dole out higher dividends to help meet the fiscal deficit target. Soon after, a senior official of one of the largest government-owned companies was asked about the cash on the books. His reply said it all: "Please don't highlight our cash position, otherwise we will be forced to give special dividends. We really need that cash for the huge capex we have lined up!"