Unquoted invstments in subsidiaries

Hi Swathy,

As per Revised Sch VI, current period means normal operating cycle of a company (normally 1 year). If company acquired investments with an intention to sell it in short run (i.e. before 1 year from date of acquisition), then only it can be classified under 'Current Assets'. All depends on an INTENTION behind acquisition.

If company acquired with an intention to hold it for a long run, then such investments has to be included under 'Non Current Assets'.

Even if company sold it before 1 year, still initially it will be under NCA since 'intention' was to hold for a long run.