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Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2011 What do you mean by TRADE OR NON-TRADE INVESTMENT? Explain Briefly

CA Harish Suwalka

CA Harish Suwalka (Expert)
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23 June 2011 example:
1. XYZ ltd is a company engaged in manufacturing of textiles, and hold investments like, bank deposit, NSC, shares and securites

all these investments are non-trade investments, because these are not directly held in course of trade of the company

2. ABS limited a financial company held deposits and share/securities, than these will be Trade investments for the company , because they are held in due course for the Trade of company.

shakuntala chhangani

shakuntala chhangani (Expert)
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24 June 2011 Any invt. done in the course of normal trade of the business is trade investment. E.g if u take a loan from bank for the business purpose, u will be required to take some shares of that bank. that invt. in shares will be trade invt. If u take shares without such requirement, it is non-trade invt.
Regards, Ca Shakuntala Chhanagni

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