Consolidated financial statements

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JOBINI JOY (Querist)

27 June 2018 A public limited company have two Joint venture company holding 16% and 20% shares.whether consolidated FS is prepared by the public ltd.

CS Peer mehboob

CS Peer mehboob (Expert)

27 June 2018 In terms of Section 129(3) and its explanation, where a company is having subsidiary, associate or joint venture company, shall prepare and filed consolidated financial statement. To fall under the definition of joint venture company, there is only joint arrangement whereby parties have joint control, have rights to the assets of the arrangement. There is not criteria for any specific percentage of shareholding in joint venture. You can refer the definition of Joint Venture company from the explanation to Section 2(6) as amended vide Companies Amendment Act, 2017. Hence, even if company is having only 16% and 20% of shareholding in Joint Venture company, company is still required to consolidate financial statement of such joint venture company u/s 129(3) of CA, 2013.

JOBINI JOY

JOBINI JOY (Querist)

06 July 2018 whether any form or manner specified .Practically how to incorporate notes forming part of FS of Joint venture.whether Form AOC-I (Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) is enough for the same.

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