Holding -subsidiary relations...

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CS
43 Points Joined September 2010

Suppose S Pvt. Ltd. is a subsidiary of H pvt. ltd...Now H Pvt. Ltd is holding 41% stake in XYZ ltd and S Pvt. Ltd. is holding 10% stake in XYZ. Now does XYZ Ltd. be termed as a subsidiary of H Pvt. Ltd.??????Plz reply fast....

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On 24 November 2010 at 16:35 Report
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COMPANY SECRETARY NCFM (Corporate Gover
664 Points Joined October 2008
Read section 4 it clearly mention the meaning of Holding and subsidiary. In your case xyz is not subsidiary of H Pvt Ltd.
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On 24 November 2010 at 16:45
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Company Secretary
2303 Points Joined October 2010

Hi...

Undoubtedly agreed with expert Hardik! In no way XYZ Ltd. can be treated as subsidiary of H Pvt.Ltd.

God Bless

Udit Sharma

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On 24 November 2010 at 18:02
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CA
910 Points Joined January 2009

Yes,i am too agree with two seniors however  XYZ will be treated as group subsidiary under AS 21.and accordingly consolidation of financial statement shall be done. 

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On 24 November 2010 at 21:54
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Dy. Manager (Taxation)
289 Points Joined October 2010

linesh is right....

xyz is not a subsidiary of S pvt. ltd. but as per AS 21 it is treated as a group subsidiary....

hence consolidation procedure as per AS 21 will be made.

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On 25 November 2010 at 13:57
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Priyank Sanghavi & Co
296 Points Joined January 2009

ya no relationship exist

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On 25 November 2010 at 16:46


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