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as the Gem of Tanzania, into the company accounts by exchanging it for
the shares.
The exchange of the Gem of Tanzania (£11 million) was for interest
bearing preference shares. Until that point David Unwin had held a
minority share in Wrekin.
Diagram 3
Normally, it would be advisable to check that increases in assets and
liabilities are consistent with the business's growth. If the company is
reporting profits quarter after quarter, but total assets are shrinking,
something is wrong. As can be seen in the case of Wrekin Construction
and Tamar, asset growth (Diagram 3) is not consistent with the expected
growth of either business prior to the introduction of the gemstone and
share exchange. Why had this occurred?
