Hi Preetkaran,
Good to know that you are trying to understand the financial statements deeply.
‘Reserve and surplus’ are always clubbed with ‘liabilities’ because they represent shareholders money and need to be utilized wisely by the company to grow shareholders wealth.
Balance sheet is a set of accounting entries that are bifurcated into a 2-columns table - Assets and Liabilities (equity is shown on liability side). There is a dual entry for every accounting item - on assets and liability side.
Reserve and Surplus of Rs 108 cr. does not mean that company is sitting on Rs.108 cr. cash. It is only an accounting entry shown in the balance sheet on ‘reserve and surplus’ side. In real terms, this money is kept in the company in form of single or different type of assets (current and fixed assets). Therefore, Rs 108 cr. will have entries in parts on assets side as well (being invested across different type of assets).
Therefore, to know the actual cash in the business, you only need to focus on ‘cash’ line item under ‘current assets’ head in the balance sheet.