As 18 : related party disclosure
This query is : Resolved
Anahita Navneet
(Querist)
22 April 2013
A ltd has 60% Shares in B Ltd which inturn has 20% shares in C Ltd. Also, A Ltd hold 14% shares in C Ltd.
As per AS 18, A ltd has substantial control over the financial or/ and operating working B Ltd and B Ltd has significane influence on the financial or/ and operating working of C Ltd.
Also, its clear that A Ltd holds significant share in C ltd, directly as well as indirectly.
My question is how much do we consider A Ltd's hold? 14% + 12% (20% Of B Lts's shares)= 26%, signifying a significant influence over the business or 14% + 60% = 76%, signifying control over the business.
As per AS 18, A ltd has substantial control over the financial or/ and operating working B Ltd and B Ltd has significane influence on the financial or/ and operating working of C Ltd.
Also, its clear that A Ltd holds significant share in C ltd, directly as well as indirectly.
My question is how much do we consider A Ltd's hold? 14% + 12% (20% Of B Lts's shares)= 26%, signifying a significant influence over the business or 14% + 60% = 76%, signifying control over the business.
01 July 2013
Automatic these are all subsidiaries and any transaction between all the companies with the directors are to be reported and disclosed.
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