Applicability of ind as

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Sourbh Aggarwal (Querist)
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24 June 2017
I have a query regrading applicability of IND AS .
A company which is listed outside india having indian subsidiary which is not listed and also net worth is less than 500 crore than indian subsidiary is required to make the financial statements as per IND AS on the basis of parent company which is listed outside india.

Aswath Raman

Aswath Raman (Expert)
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26 June 2017 Is it not a good question!

Whenever a company is covered under Ind AS, automatically the subsidiary, joint venture and holding companies get selected, so the question is whether the foreign company needs to apply Ind AS or not. Does the listed foreign company have to do statutory audit under Companies Act, 2013? If yes, then listed, in the parlance of law would imply that listed in a recognised stock exchange. It is better to see whether MCA has a list of recognised stock exchange and based on that you may proceed. Now, if the foreign company need not prepare a BS and PL based on Ind AS/Companies Act, 2013, it is likely that the subsidiary may be exempt.

Sourbh Aggarwal

Sourbh Aggarwal (Querist)
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26 June 2017 This is not my answer.
This is the applicability of INDAS
Ind AS will be mandatorily applicable to the following companies for periods beginning on or after 1 April 2016, with comparatives for the period ending 31 March 2016 or thereafter:

1. Companies whose equity and/or debt securities are listed or are in the process of listing on any stock exchange in India or outside India and having net worth of 500 crore INR or more.
2. Companies having net worth of 500 crore INR or more other than those covered above.
3.
3. Holding, subsidiary, joint venture or associate companies of companies covered above.
As per company Act 2013, if any company which is registered & listed outside india than this is not a company as per comapany Act,2013.
I asked ithat parent company which is registered & listed outside india than its indian subsidiary will cover under point 3???

Aswath Raman

Aswath Raman (Expert)
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26 June 2017 For that I have given answer in the last sentence of my earlier reply!

Sourbh Aggarwal

Sourbh Aggarwal (Querist)
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27 June 2017 sir, as per point 1 of applicability of IND-AS what is the meaning of comapnies??

Aswath Raman

Aswath Raman (Expert)
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27 June 2017 If the foreign company is to apply Ind AS (see that foreign companies also form part of the scope of companies act, hence all the rules made thereunder are applicable for them as well), the subsidiary should apply too.

Sourbh Aggarwal

Sourbh Aggarwal (Querist)
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27 June 2017 Foreign Company as per Companies Act, 2013 – Section 2(42) Company incorporated outside India and having a place of business in India Company or Body Corporate incorporated outside India having a a place of business in India whether by itself or through an agent, physically or through electronic mode and b. conducts any business activity in India in any other manner.
Is parent company falling in this definition??

Aswath Raman

Aswath Raman (Expert)
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27 June 2017 Should you not be answering that question?

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