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Much cash balance in balance sheet

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Querist : Anonymous

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Querist : Anonymous (Querist)
04 May 2015 Dear Members,

I would like to know that "What are the effects when there is huge cash balance in Balance Sheet.

Please clarify ..

Regards.
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CA AnKiT BoHrA (AB)

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CA AnKiT BoHrA (AB) (Expert)
04 May 2015 there are no ill effects.. depending on the size and requirement of companies, cash balance is allowed... only u had to show that it all comes from a legal source... nothing else...

but yes reasons should b there to prove the genuine nature of transactions for having huge cash
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