Consolidation of FS

Sunny (CA Business) (398 Points)

21 June 2022  

M/s XYZ Pvt. Ltd and M/s PQR Pvt. Ltd. form a Joint Venture Entity XYZ-PQR JV.
Structure of JV Entity is AOP (Association of Person). Both holds equal share in AOP

Turnover is above the threshold for all the entities and hence tax audit applicable to all

Query:

1. At the time of consolidation of accounts, whether companies act related compliance has to be followed by AOP. as it is being consolidated?

2. What points to be considered by XYZ Pvt. Ltd at the time of consolidation?

3. In addition to tax audit, whether any other audit report is to be issued for JV Entity i.e. AOP here?