Outlook Towards Maintenance of Liquid Assets to Ensure

How to aliment of still assets to ensure frm has adequate currency? Asking the above-referenced question without statistics makes it impossible for whateverone to kick downstairs you a proper answer. Generally speaking, you moldiness limit expenses and ensure that somewhat of your assets argon in the form of short terminal assets. The higher your short term assets and the less(prenominal) your short term debt, the better your exponent to comport the debt (short term liquidity balance / liquidity ratio help you find this). There is no perfect occur or ratio for ein truth truehearted. all(prenominal) industry/business is unique.Strive to control debt (some debt is very sober since it helps a business grow) and to conserve giant assets in the form of specie and cash equivalents Companies (Acceptance of Deposits) Rules, 1975 Maintenance of liquid assets (1) every(prenominal) fraternity shall, before the 30th sidereal day of April of separately year, deposit or inve st, as the result may be, a keep down of cash which shall not be less than 23fifteen per cent of the add together of its deposits maturing during the year destination on the thirty-first day of March next side by side(p) in any one or more of the following methods, namely a) in a current or some otherwise(a) deposit account with any plan 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 federation Limited, Bombay, a play along incorporated nether the Companies Act, 1956 (1 of 1956), and notified to a lower place clause (f) of section 20 of the Indian Trusts Act, 1882 (2 of 1882) 5Provided that with relation to the deposits maturing during the year ending on the 31st day of March, 1979, the resume required to be de posited or invested under this sub-rule shall be deposited or invested before the 2630th day of September, 1978. Explanation. For the purpose of this sub-rule, the securities referred to in clause (b) or clause (c) shall be reckoned at their commercialise value. 2) The sum of money deposited or invested, as the reference may be, under sub-rule (1), shall not be utilized for any purpose other than for the repayment of deposits maturing during the year referred to in that sub-rule, provided that the amount remaining deposited or invested, as the case may be, shall not at any time fall below 23fifteen per cent of the amount of deposits maturing until the 31st day of March of that year. Maintainence of liquidness in Business One of the genius aims of a music director is the maintenance of liquid assets.Maintenance of liquid assets connotes that the firm always has enough cash in hand to pay for 1. Recurring Expenses 2. To make unexpected large purchases 3. To meet emergencies at all measure The outflank way to maintain a cash flow is to prevent delinquent accounts and avert a blockage in the inflow of income. The ideal way to do this would be avoiding doing business with customers who have swordplay out bad reference work histories however, on the other hand rigid customer policies trammel the firms business with companies having only irreproachable credit records would deplete the firms pool of potential customers.With the heed looking at expanding the business it becomes prerequisite to do business with most bulk who want to do business with you. The honesty of a growing business is that the biggest and best clients also want sufficient charge period and then ask for cardinal months time for making payments. Here is where the Manager is caught between two horns. While the firm does not want to lose clients or destroy any potential or established business relationships by set down harsh payment terms, it is also necessary for the Manager to take some control of accounts receivable to avoid cause chaos with the cash flow.Expansion of business requires annex of credit and when a firm extends credit, it is in effect loaning customers money, which in turn affects liquidity as any company wants to be reasonably sure that the money will be paid back. The base step towards maintenance of liquid assets whence commences with verification of customer credit honor. Certain steps can be taken to check whether the customer is good enough on his payments- 1. Check each companys credit recital before extending credit. 2. Check how long the company has been in business. 3. Obtain Credit Reports as they show historical payment entropy bankruptcy records any