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Consolidated financial statement

Harsh Jain (Artilce) (25 Points)

20 September 2016

a pvt ltd co have a wholly owned pvt ltd subsidiary, i want to whether Consolidated financial statment is mandatory for F.Y 2015-16. kindly guide with citation.

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Pratik Shah (Practising Company Secretary) (4432 Points)
Replied 20 September 2016

As per Section 129(3), when a company has one or more subsidiaries, such company shall also prepare consolidated financial statements.

However, MCA had recently issued a notification dated 27.07.2016 amending the rules, where if specified coditions are fulfiled, then such company does not require to prepare consolidated financial statements. Kindly refer such notification

https://www.mca.gov.in/Ministry/pdf/CompaniesAccountsAmendmentRules_28072016.pdf