ABC Private Limited has invested in XYZ Limited and is holding 66.64% of it shares. In view of the above XYZ is a subsidiary of ABC. In accordance with Section 129 of the Companies Act, 2013, ABC Private Limited is required to prepare a consolidated financial statement (apart from its own financial statements).
However the subsidiary company (XYZ) has filed an application with the Office of the Registrar of Companies, Tamilnadu, Chennai, under Section 560 of the Companies Act, 1956, for striking off its name from the Register of Companies. The application submitted by the subsidiary has already been accepted by ROC and the process of striking off the name has been initiated. Due to this the subsidiary company has not prepared / drawn its financial statement for year ended 31st March 2015.
Due to non-availability of the accounts of the subsidiary it is not possible for ABC to prepare consolidated financial statement for year ended 31st March 2015.
I want to put a note in the Board Report as well as in the Notes on Accounts of the holding company mentioning the fact of the issue. I have prepared a note for this purpose. Kindly advise whether this note holds good or needs any change. I reproduce below the notes for your guidance.
The Company as on 31st March 2015 is holding 89,95,975 equity shares of Rs.10/- each representing 66.64% in the share capital of subsidiary company XYZ Limited. In compliance with Section 129(3) of the Companies Act, 2013, read with Rules made thereunder, the Company in addition to is own financial statements is required to prepare a consolidated financial statement of the Company and all of its subsidiaries in the manner specified under the Act and the said financial statements shall also be laid before the Annual General Meeting of the Company. The subsidiary company M/s.XYZ Limited has filed an application with the Office of the Registrar of Companies, Tamilnadu, Chennai, under Section 560 of the Companies Act, 1956, for striking off its name from the Register of Companies. The application submitted by the subsidiary has already been accepted by ROC and the process of striking off the name has been initiated. Accordingly the subsidiary company has not prepared / drawn its financial statements for the year ended 31st March 2015. In absence of financial statements of the subsidiary the Company is not in a position to prepare a consolidated financial statement.
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