Fdr = cash & cash equivalent ???
This query is : Resolved
pratik upadhyay
(Querist)
14 December 2013
Dear Experts,
Please let me know whether FDR would be under group " Cash & Cash Equivalents" as per Revised Schedule VI.
Does it make any difference if such FDR are kept as marigin money or any other type of security against borrowings from BANKs
Please let me know whether FDR would be under group " Cash & Cash Equivalents" as per Revised Schedule VI.
Does it make any difference if such FDR are kept as marigin money or any other type of security against borrowings from BANKs
CA Kedar Sakhardande
(Expert)
16 December 2013
A Free Deposit receipt can be taken as a cash and cash equivalent
the reason being you can readily convert it to cash at a short notice of say 24 hous or less
however, if it is retained as a security or a as a margin,you cannot readily convert it to cash unless and untill the loan or liability is liquidated. so it has to be other than cash and cash equivalent
the reason being you can readily convert it to cash at a short notice of say 24 hous or less
however, if it is retained as a security or a as a margin,you cannot readily convert it to cash unless and untill the loan or liability is liquidated. so it has to be other than cash and cash equivalent
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