The move is part of the group's plan to clean up Ceat's balance sheet, following qualifications from its auditors last year. Group sources said: "The reduction of cross-holdings is an on-going process and bringing about transparency in intra-group holdings is the primary agenda of the group."

Ceat, during the 1997-98 fiscal, has reduced its investments in unquoted scrips substantially, while its investments in listed companies have increased.

The company had sold around Rs 80 crore of investments in unlisted group firms to two investment subsidiaries, Jubilee Investments and Hilltop Holdings. Proceeds from the sale are believed to have gone into the purchase of these shares from different group finance firms.

The fresh purchase of stake in group firms during 1997-98 include shares worth Rs 8.36 crore in CESC, Rs 8.17 crore in Phillips Carbon Black, Rs 8.67 crore in RPG Transmission, Rs 5.54 crore in KEC International, Rs 2.98 crore in Searle India, Rs 1.78 crore in Spencer & Co and Rs 63 lakh in Gramaphone Co of India.

RPG official sources said the group would continue to transfer its holdings in group firms to Ceat in the current financial year also. However, the extent of investment that would be required could not be ascertained.

These investment could be funded through funds inflow from the South Asia Tyres and Sulzer India stake sale. Ceat is expected to rake in around Rs 85 crore from the 50 per cent stake sale in South Asia Tyres, the 50:50 joint venture with Goodyear Tires of USA, and around Rs 30 crore from the sale of its holding in Sulzer India to the Swiss partner.

RPG group officials said cleaning up of the annual report was part of the move to increase investor confidence. The group is at present recasting its operations through mergers, divestments and acquisitions.

While three group cable firms have been merged last year, the two transmission firms are expected to be amalgamated soon, once all the necessary clearances are through.

The group has already decided to get out of several non-core businesses, like RPG-BTP, Benninger India, Sulzer India, and basic telecom services, among others.

The RPG group is believed to be mulling the possibility of consolidating its core businesses of power generation and transmission, cellular operations, entertainment, retail, tyres and allied businesses through acquisitions at a later stage.

Ceat, in the meanwhile, despite a bad year, has consolidated its two- and three-wheeler tyres business. During the last fiscal, it has acquired a controlling stake in the Kerala-based Rado Tyres, one of the largest two- and three-wheeler tyre manufacturers in the country.