Consolidated balance sheet

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Sachin Kumar (Querist)

26 February 2019 One Private Limited company had done investment in another private limited company (holds more than 20% of shares) so these are associate companies.
Does consolidated balance sheet is required...?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

26 February 2019 (a) the ownership, directly or indirectly through subsidiary(ies), of more than one-half of the voting power of an enterprise; or

(b) control of the composition of the board of directors in the case of a company or of the composition of the corresponding governing body in case of any other enterprise so as to obtain economic benefits from its activities.

A subsidiary is an enterprise that is controlled by another enterprise (known as the parent).

A parent is an enterprise that has one or more subsidiaries.

A group is a parent and all its subsidiaries.
Consolidated financial statements are the financial statements of a group presented as those of a single enterprise.

Above case consolidation is not required.

Sachin Kumar

Sachin Kumar (Querist)

26 February 2019 Dear Sir, As per section 129 of companies act, 2013 subsidiary includes associate companies. (Companies Amendment Act, 2017 Effective from 07 May 2018) I want to know whether consolidation is required while making Balance Sheet of F.Y. 2017-18....?

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