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Consolidated financial statement applicablity

Bhavani Shankar (Employed) (135 Points)

09 September 2016

A private limited company has a wholly owned Foreign subsidary.It does not have any other associate or subsidary or Joint venture.Please confirm the applicability of preparation of Consolidated Financial Statements for Year ended 31st March 2016.

Thanks in advance

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2 Replies

CA Rahul Mor (Chartered Accountant) (173 Points)
Replied 09 September 2016

yes Private company having fully owned foreign subsidary company then Pvt company require to prepare CFS.

Applicability of CFS

1. PVT Ltd Company

2. Publicunlisted company

3. Listed Company

Now the CA, 2013 mandates every Listed, unlisted public and private limited companies to prepare consolidated financial statements which are having subsidiary companies as defined under Section 2(8 7) of the Companies Act, 2013, which includes Associate Company and Joint Venture (Both in India and Abroad).

RAJENDRA CHOUHAN (CS) (21 Points)
Replied 10 September 2016

As per notification date 27.06.2016 exemption regarding consolidation of accounts of subsidiary or associate copmany. My question is whether now if company has only one subsidiary or associate company, in that case it is mandatory that company prepare consolidated financial statement or not.