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Financial accounting

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Sana Chopra (Querist)
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09 November 2013 In South Mumbai Chemical Market, a traditional method of finance known as "hundi finance" is prevailing. In this method any amount of money is available to people of the market. the terms are for every Rs 100000 borrowed interest of Rs 13000 is deducted upfront. the amount of Rs 100000 is to be repaid in 10 equal monthly installments, starting from the end of the first month. There is an opportunity available to invest money into Sesame trade where you have to buy in cash at Rs 98 and sell on 30 days credit for Rs 100. You can trade in any amount you want. The business is very secure and money will come on due date. The question is should one borrow from Hundi finance and invest in Sesame Trade? Is it advisable to borrow Rs 2 crore and do the deal?

Sana Chopra

Sana Chopra (Querist)
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09 November 2013 Someone please HELP !!!

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