07 August 2011
sir., i want to ask sec 372A doesn't apply to wholly owned subsidiary ..but sir earliear if a co. is having 90% investment in subsidiary n on 30 march 2011 it makes a investment of another 10% in subsidiary WHICH makes it wholly own subsidiary then whether this 10% investment is taken into consideration on 30 march 2011 for checking the maximum limit under sec 372A or we have to skip this investment ?
09 August 2011
Paid up share capital and/or free reserves should be as per Company's latest available AUDITED BALANCE SHEET hence investment made as on 30th march'11, in my opinion, will not be covered as latest audited balance sheet did not include the same for auditing.
CAclubindia
