Explain the reasons in brief for the following statements in the context of practices prevailing under the banking : (iv) A very high current ratio is not a welcome sign.

Current Ratio is the index of the borrower's liquidity. If the ratio is very high it will put the bank on the alert as it may be due to inefficient working capital management, manipulation in the quality/valuation of stocks, large concentration of unsold goods/unrealised book debts, etc have taken place.