Clarification of Section 212 of the Companies Act

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M P Arun (Querist)
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18 December 2007 Sir,
Thanks for your earlier suggestions.
I have a query now on Details to be furnished U/s 212 of the Companies Act.
As a part of disclosure required by the holding company, the statement pursuant to Section 212 of the Companies Act to Subsidiary Companies requires details on various things to be given.
This is also to be read with requirements of Accounting Standard 21 on consolidation of financial statements issued by The ICAI.
There are three companies which are subsidiaries by virtue of Section 4(1)(a) where one Company A controls the composition of board of directors of companies B, C and D.
The finding out of extent of holding as required U/s 212 is very difficult or not applicable at all in these cases where the relationship of holding and subsidiary is U/s 4(1)(a) (even where it is U/s 4(1)(c) also).

1.Please help me in making the harmoneous interpretation of requirements of Section 212 and Accounting Standard 21 of the ICAI. Does AS 21 requires consolidation in this case also where the extent of holding is very difficult to calculate?
2.Where it is not possible to find the extent of holding, can we show the figures as 'nil' against the profits dealt or not dealt in accounts as required by section 212? since we have not made any line by line addition in these cases, giving these details as 'nil' is still correct?
3.Whether the details of Changes in fixed assets, borrowings etc., still be given in these cases?
4.Is there any circular/notification etc., being issued by Ministry of Company Affairs or guidance not by ICAI on this?
Please help me in this regard.

Regards,
M.P.Arun