Outlook Towards Maintenance of Liquid Assets to Ensure That Adequate Cash in Hand Is Available.

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How to maintenance of liquid assets to ensure frm has adequate cash? Asking the above-referenced question without statistics makes it impossible for anyone to give you a proper answer. Generally speaking, you must limit expenses and ensure that some of your assets are in the form of short term assets. The higher your short term assets and the less your short term debt, the better your ability to pay the debt (short term liquidity ratio / liquidity ratio help you determine this).

There is no perfect number or ratio for every firm. Each industry/business is unique. Strive to control debt (some debt is very good since it helps a business grow) and to maintain enough assets in the form of cash and cash equivalents Companies (Acceptance of Deposits) Rules, 1975

Maintenance of liquid assets
(1) Every company shall, before the 30th day of April of each year, deposit or invest, as the case may be, a sum which shall not be less than 23[fifteen per cent] of the amount of its deposits maturing during the year ending on the 31st day of March next following in any one or more of the following methods, namely:

(a) in a current or other deposit account with any scheduled bank, free charge of lien;
(b) in unencumbered securities of the Central Government or of any State Government;

(c) in unencumbered securities mentioned in clauses (a) to (d) and (ee) of section 20 of the Indian Trusts Act, 1882 (2 of 1882);
24[(d) in unencumbered bonds issued by the Housing Development Finance Corporation Limited, Bombay, a company incorporated under the Companies Act, 1956 (1 of 1956), and notified under clause (f) of section 20 of the Indian Trusts Act, 1882 (2 of 1882)]:

25[Provided that with relation to the deposits maturing during the year ending on the 31st day of March, 1979, the sum required to be deposited or invested under this sub-rule shall be deposited or invested before the 26[30th day of September, 1978].]

Explanation.- For the purpose of this sub-rule,...
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