30 July 2015
In one of subsidiary company it was incorporated on May, 2014 so their AGM due date will be on December, 2015 therefore they are in no hurry to Audit there accounts and board meeting for approval of accounts also will be held after 30th September, 2015 so I want to know that as a Holding Company how can we consolidate the accounts of that Company and make consolidated balance sheet and secondly, whether it will be Ok if they approve of there accounts and board report after the Holding company approve there accounts and Board report because as per my understanding Holding Company should approve their accounts after approval of accounts of Subsidiary Company.
30 July 2015
While it is correct that the due date of AGM of the subsidiary is 31 dec 2015, the accounts as of 31/3/2015 have to be audited and approved by BOD. It is however only to be "LAID" before the AGM. So once the BOD approves, the holding company can use that accounts to consolidate. Just because the AGM of the subsidiary is not completed, the holding company is not exempt from consolidating the subsidiary accounts
31 July 2015
Thanks sir for your reply, but if they do not audit their accounts till say October, 2015 how can we make Consolidated Balance Sheet and it is required to be filed to ROC so Holding company is forced to wait till that Subsidiary audit their accounts and then can make Consolidated Balance Sheet and then file with late fees.
CAclubindia
