Companys investment pattern and intensity has evolved over a period of time, from investment in business assets to investment in non-business assets. Such change has occurred on account of exposure of companies to economic fluctuations. This change has witnessed, future returns and availability of large free cash flows for investments at managements disposal, during difficult times. As such, investment made in non-business assets assures long term profitability. In this context, researcher has studied the financial records of companies belonging to chemical sector and fertilizer and pesticides sector listed on Indian Stock Exchange from 2005 to 2015. It is observed that, such investments done are more in chemical sector companies compared to fertilizer sector companies. And also income generated from such investments is more in chemical sector than fertilizer and pesticides sector. Thus, indicating companies are giving more attention on earning income and profit by way of non-operating investment and neglecting investment in its care operating activities.
Key words: Investment, Asset, Other Income, Profitability and Return
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