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.
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
CAclubindia
