investments

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2010 hi
what is the difference b/w TRADE INVESTMENTS AND NON - TRADE INVESTMENTS as per the schedule VI disclosure requirements of the companies act.

Amit

Amit (Expert)
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21 May 2010 If the investment is a requirement to run the business , then it is Trade Investment. Otherwise, it is non trade investment.

Invement in Subsidiary Co., Supplier Co. etc are Trade Investment.

Investment in shares of another company does not seem to be a requisite for any industry which is not an investment company. So, in this case, it is non trade investment.

Querist : Anonymous

Querist : Anonymous (Querist)

22 May 2010 thanks sir, please clarity the followings:

1) should we treat investment in supplier company as trade investment?

2) if the subsidiary and the holding company are doing two different nature of business which are not having any bearing on the other, whether the same should still be treated as trade investment.

Amit

Amit (Expert)
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22 May 2010 Answer for Both your points is Yes

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2010 thanks sir

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