CARO reporting

Can anyone tell me how do we ensure that the Short term funds are not used for long term purposes when we report for CARO 2003

what is the logic behind ensuring it?

Replies (1)

U can use the fund flow statement. Compare the ratios of long term and short term funds with the long term and short term assets.

The logic behind this reporting  is to analyse the impact on short term liquidity.

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