Holding & subsidiary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2013 Dear Expert,

My doubt is If X co. is a Holding company of Y Co.(55% share) and Y co. is a holding company of Z Co.(60%). What will be holding % of X co. in Z co.?

The X co. holding in Z co., will be treated as indirect holding only right?

Pls clarify

Thanks in advance

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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19 July 2013 1. X Ltd does NOT have a direct holding in Z Ltd. It has an indirect holding.
X Ltd. will be treated as subsidiary of X Ltd.

2. Share in profits will be computed as under:

(a) Y Ltd. - 60% of profits of Z Ltd.
(b) X Ltd - 55% of (Profits of Y Ltd. + Share of Y Ltd. in Z Ltd.)

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2013 Thank u

So x's share in Z will be 33% (55% of 60%).Is this right??

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