Consolidated financiak

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DHAVAL R ASHAR (Querist)
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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)
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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)
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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)
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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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