Consolidated financiak

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DHAVAL R ASHAR (Querist)

26 January 2015 Dear Experts Kindly Advise me on the following, Suppose H is the holding company of S1 , S1 is the holding company of S2, then at the time of making consolidated financial statement of company H whether the accounts of COMPANY S1 & S2 shud b taken into account or accounts of Only S1 shud b taken into account Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 January 2015 The consolidated financial statements are prepared on the basis of financial statements of parent and all enterprises that are controlled by the parent.

Hence accounts of S1 & S2 should be taken into account for consolidation.

DHAVAL R ASHAR

DHAVAL R ASHAR (Querist)

27 January 2015 Seetharaman Sir, I will be really obliged if you give me the reference from Companies act that S2 Ltd is also controlled by H Ltd.
Thanks in Advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 January 2015 • Subsidiary company [Sec 2 (87)] means a company in which the
holding company
– Controls composition (>50%) of the Board
– Exercises or controls more than 50% of total share capital either
by itself or together with one or more subsidiaries.

A Ltd holds 51% in B Ltd. B Ltd in turns holds 100% in C Ltd
CFS of A ltd (including B Ltd and C Ltd) to be presented
CFS of B Ltd (including C Ltd) also to be
presented)

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