how reserves can be utilised for financing ???

Hi Abishek :)

Earning after equity dividend are called Retained earning and this is after transfer to general reserve as per company act. As for me these are in the form of cash and are available for Investment and cost of retained earning are Ke

Regards,

Harie

Dear Abhishek

Yes, dr you are right that the Retanied Earnings are the part of Profit, & it is different from cash...

but  both are not opposite things, we can say that the profit earn during the year in relation to some extent cash. which means that the part of profit we transfered to retained earning has to be, cash in nature, which indicate that the cash or cash equlivaent balance in your balance sheet has some part of cash as retanied earning...