DHBVNL is carrying very high balance of cash and bank balance. The position as on 31.3.2005 and 31.3.2004 are given below.
Table 2.3 - Cash and Bank Balance Position (Rs. in million)
|
Particulars |
31.3.2005 |
31.3.2004 |
|
Cash in Hand |
91.64 |
0.15 |
|
Balance in Current Accounts |
1168.73 |
1101.31 |
|
Balance in Deposit Accounts |
10.10 |
10.10 |
|
Total balance at DHBVNL |
1270.48 |
1111.55 |
|
Comparative position at UHBVNL |
256.76 |
369.32 |
A cash balance of above Rs. 9 crore is highly inappropriate. Average cash balance during FY 2004-05 was Rs. 1.59 crore and bank balance was Rs. 109 crore. Keeping high cash and bank balance by the licensee results in higher working capital loan requirement, which add the interest cost. With modern banking facility bank balance can be kept at minimum level. For comparison purpose, UHBVNL is keeping much less cash and bank balance.
