Working Capital Management Interview Question:

Tell me what are Inter-corporate Deposits (ICDs)? What are their main characteristic features?

Submitted by: Administrator

Inter Corporate Deposits indicates unsecured short term funding raised by one company from another company. They are dependent on personal contacts. Following are their main characteristics:

1)They are for a very short period of time i.e 3 months or 6 months.

2)They are unsecured source for raising funds.

3)They are not regulated by any law.

4)It is a relationship based borrowing made by the company.

5)They involve high risk and high returns

6)Useful in solving temporary capital crisis.
Submitted by: Administrator