section 212 of companies act 1956

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CA Santosh Shinde (Querist)

08 June 2009 If a parent company in India having a overseas subsidiary. Do we need to conduct an audit of that subsidiary if not done? even if that company's country do not requre an audit of accounts.

CS Vivek Hegde

CS Vivek Hegde (Expert)

08 June 2009 Dear Santosh

Section 212 is applicable to subsidiaries abroad. So you hav no other way but to conduct audit of that subsidiary..There is a neverending debate on non practicability of this requirement..But as on date this is the law..

rgds

Vivek

Ankur Garg

Ankur Garg (Expert)

08 June 2009 Absolutely in agreement with Mr. Vivek.
Audit of foreign subsi of indian parent company is necessary.

Regards

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

08 June 2009 Yes, audit of foreign subsidiary is necessary from a CA (within the meaning of chartered Accountant Act, 1949) or from a person eligibile to conduct audit as per law of the foreign country.

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