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Explanation: Current Investments refer to financial assets that a company plans to hold for a short period, typically less than one year. These investments are easily convertible into cash and are intended for temporary deployment to earn returns while preserving liquidity.
Example: As of FY23, TCS had current investments worth 36,897 crore. These investments represent financial assets that TCS expects to convert into cash within the next year. They may include short-term marketable securities, certificates of deposit, or government bonds with relatively short maturity periods.
Current investments serve as a means for companies to earn returns on excess cash while retaining the ability to quickly access funds if needed for operational requirements or other strategic purposes. They provide a balance between liquidity and return on investment, allowing companies to maximize the utility of their available funds.
You can view the value of Current Investments for any company on Radar under the Current Assets in the Balance Sheet section.