REVISED SCHEDULE _VI

[Asked by Guest]

As per companies Act Revised_Schedule_VI :

Asset :

(1) Non-Current Assets : Non-Current Investments

(2) Current Assets : Current Investments

My query is the company  purchase share 1000 Qty of Reliance Ind. Ltd from market than its come in which group Non-Current Investments  or Current Investments.   Second is company make investment in PMS a/c. last 2 years & company make investment in companies with interest
free and company make fixed deposit with Bank.   Company business is  Finance &  loan & advance and income  is interest on loan & FD & LTCG & STCG on Share.

Thanks & Regards

[CAGOPALJI AGRAWAL]

One has to see the intention on the date of investment (can see the minutes etc) for ascertaining the nature of investment whether current or non current. What do you mean by PMS A./c?

AI Summary

Investment classification depends on declared intention at acquisition; use contemporaneous records to determine current or non current status.
Classification as Current or Non-Current Investment depends on the investor's intention at the date of acquisition; contemporaneous evidence such as board minutes should be examined to determine whether holdings are for near term realisation or for long term purposes. The query describes market purchases, investments via a PMS account, interest free intercompany investments and bank fixed deposits by a finance company, but the reply seeks clarification of "PMS A/c" and emphasizes reliance on documented intention.