Fds, margin money on bgs/lcs

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mahender (Querist)
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02 August 2013 1) where we have to disclose Fixed Deposits in the Balance Sheet?

2) We are opening Fixed Deposits for the Margin Money on BGs/ LCs, where we have to disclose these FDs in the Balance Sheet?

Kumar

Kumar (Expert)
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02 August 2013 Both Under Cash and bank balances itself

Margin money deposit nomenclature needs to be used under C&B balance

Since this is a restricted bank balance and if it will be subject to lien for more than 3 months do not consider this for cash flow statement as it is not a cash and cash equivalent. In such case consider it in Increase / decrease in loans and advances

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