Understanding cash on hand in statement

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Deepak (Querist)
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27 January 2017 Hi, I am trying to understand meaning of cash in hand as shown in Balance sheet of a small company. It says Cash at bank Rs. 4 crores and Cash in hand Rs. 3 crores as at 31st March. Is it possible to have so much cash on hand for a company? Can a co. Keep this much cash on any date?
Appreciate your professional views.
Thx

Deepak

Deepak (Querist)
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27 January 2017 Isn't cash in hand of Rs. 3 crores on a very high side and seems mysterious?

Sandeep Dharar

Sandeep Dharar (Expert)
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30 January 2017 There is no issue if u can define the source of that much cash. If there is large cash transactions in the business then it is obvious for the company to keep that much cash in hand. But without any such reason, the company is just blocking the investment opportunity which results in less income to the company.

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Deepak

Deepak (Querist)
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31 January 2017 Many thanks Sandeep ji

Sandeep Dharar

Sandeep Dharar (Expert)
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31 January 2017 U r welcome Deepak. U may hit the like button if u like my reply, to show ur appreciation.

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Deepak

Deepak (Querist)
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02 February 2017 MD of this co. arrested yesterday by UP STF in charges of financial fraud running in more than 3700 crores. company name Ablaze info solutions pvt ltd.