reduce cash balance of PVT LTD co

This query is : Resolved

CA Vishal Harsora (Querist)
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05 December 2009 SIR I HAVE AUDIT ONE PVT LTD CO IT HAVE HUGE CASH BALANCE AROUND RS 6,50,000/- .
IN LAST YEAR ONLY RS 99,258/- HOW TO REDUCE CASH ???????

this position arises after providing genereal expenses

GIVE SOME ADVISE ON ABOUT MATTER TO REDUCE BAL

Aditya Maheshwari

Aditya Maheshwari (Expert)
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05 December 2009 sHOW GENERAL EXPENSES AS conveyance printing & stationery exp, office general exp, etc.

CA Vishal Harsora

CA Vishal Harsora (Querist)
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05 December 2009 this situation arises after providing all genereal expenses

CA. SUDHARSAN K G

CA. SUDHARSAN K G (Expert)
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05 December 2009 ..................................................................................................................................

CA Vishal Harsora

CA Vishal Harsora (Querist)
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07 December 2009 u r saying that i have to create fictitous loan but i have too cash bal and if this done then section 40A(2) attracted exceeding Rs 20,000/- i dont have too bal and i have to reduce it to Rs 1 lakh around
this position aries if i have name of the client or borrower

suggest other measures

Rasesh

Rasesh (Expert)
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07 December 2009 I do not agree with the suggestions given by other experts. There are cleaner and more legal way of reducting the cash balances.

The Company may purchase depreciable assets which are required by the Company For Example: car for company purposes.

The company may also make investments thereby keeping the money safe.

Rasesh

Rasesh (Expert)
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07 December 2009 If you are having a query for the previous year, then I suggest you show the actual balance.

CA. SUDHARSAN K G

CA. SUDHARSAN K G (Expert)
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11 December 2009 ...................................................................................................................................................................

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