If a company don’t have revenue, can that company invest the funds in other Companies? Without any operation. What will be the implication.
Menu
Comapany without revenue can invest its funds to other companies
Replies (2)
If company is NBFC registered with RBI then it can invest in the interest of the company. But if it is not, then it can invest for short term so that as and when business take off the funds can be made available to do business as per MOA . Of course it must take shareholder approval justifying the short term investment to earn some income by way of interest or appreciation etc
Holding investment company ,CIC ,NOHFC are some example
Recent Topic
- Sale of Goods or Services?
- ITR form query
- Credit against paud RCM on rent
- Dividend difference in 26AS, AIS, TIS
- 194JB INCOME
- Filing ITR3 where income under section 44AD with L
- What is superannuation fund
- GST Refund of input services under Inverted Duty S
- Dividend Reporting
- Real operational bottlenecks after firms use Tally
Related Topics
CAclubindia
