Query :-
whether the unlisted Company should prepare the consolidated accounts of its Associate Companies or not for the year 2017-2018?
As –in the following two provisons for consolidation , I need help to understand ;-please suggest
Facts :
1) As per Companies (Accounts) Amendment Rules, 2016 ( extract reproduced here below:- )
2. In the Companies (Accounts) Rules, 2014, (hereinafter referred to as principal rules), in rule 6, for the secondproviso, the following proviso shall be substituted namely:-
“Provided further that nothing in this rule shall apply in respect of preparation of consolidated financial statementsby a company if it meets the following conditions:-
(i) it is a wholly-owned subsidiary, or is a partially-owned subsidiary of another company and all itsother members, including those not otherwise entitled to vote, having been intimated in writing and forwhich the proof of delivery of such intimation is available with the company, do not object to thecompany not presenting consolidated financial statements;
(ii) it is a company whose securities are not listed or are not in the process of listing on any stockexchange, whether in India or outside India; and
(iii) its ultimate or any intermediate holding company files consolidated financial statements with the Registrar which are in compliance with the applicable Accounting Standards.”
2) Where as per The Companies (Amendment) Act , 2017 , SECTION 33 (which is notified on 7.5.2018) which refers Section 129 of the Principle act( extract of the same is reproduced herebelow:- )
33. In section 129 of the principal Act, for sub-section (3), the following sub-sectionshall be substituted, namely:— "(3) Where a company has one or more subsidiaries or associate companies, itshall, in addition to financial statements provided under sub-section (2), prepare aconsolidated financial statement of the company and of all the subsidiaries and associatecompanies in the same form and manner as that of its own and in accordance withapplicable accounting standards, which shall also be laid before the annual generalmeeting of the company along with the laying of its financial statement under sub-section (2):
Provided that the company shall also attach along with its financial statement, aseparate statement containing the salient features of the financial statement of itssubsidiary or subsidiaries and associate company or companies in such form as maybe prescribed:
Provided further that the Central Government may provide for the consolidation of accounts of companies in such manner as may be prescribed."
regds
CAclubindia
