08 November 2017
A private limited NBFC is a holding company of another private limited NBFC for first 6 months of F.Y.16-17. For the later 6 months it is no longer the holding company also it does not hold more than 20% shares. There are only common directors between two companies.Will they be treated as associate companies.
Is the consolidation of financials required? If yes as per holding subsidiary( for 6 months or for entire year) or if applicable for associate companies.
09 November 2017
Accounts are consolidated for the amounts lied in the accounts at the end of the financial year. It is not proportionated as per the during of the period the entities become holding-subsidiraies or associate or become Joint venture.Further, for checking the status of the companies being Holding-Subsidiary or associate companies, for the purpose of consolidation of accounts, the status of entities will be checked as on the last day of the financial year. Therefore, in your case, both NBFC comapnies if not associate at the last day of the financial year, no consolidation is required.
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