As per schedule VI:
Cash and cash equivalents
(i) Classification shall be made as:
(a) Bank balances;
(b) Cheques, drafts on hand;
(c) Cash balance;
(d) Cash equivalents – short-term, highly liquid investments
that are readily convertible into known amounts of cash
and which are subject to an insignificant risk of changes in
(e) Others (specify nature).
(ii) Earmarked bank balances (e.g. unpaid dividend) shall be
(iii) Balance with banks to the extent held as security against the
borrowings, guarantees, other commitments shall be disclosed
(iv) Repatriation restrictions, if any, in respect of cash and bank
balances shall be separately stated.
(v) Bank deposits with more than 12 months maturity shall be