Clarification regarding paragraph-4(xiv) of auditor report

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Narayana rao (Querist)
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09 October 2011 Dear Sir,

I woulld like to know the applicability of provisions regarding paragraph-4(xiv) of Companies Auditor's Report order 2003. We have invested Rs.1 1ac in the year 2010-11 in SBI mutual fund in a view to holding investment not as trading purpose. Please clarify is this investment is allowable or not.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 October 2011 Clause 4(xiv) applies only to those companies which deal or trade in shares, debentures and other securities. In other words, if the the intention is to hold the security as investment,the said clause is not applicable.

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