holding company and subsidiary company

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Shridhi Jain

Company Secretary

1678 Points Posted on 13 January 2011

Dear frnds,

Kindly tell me the implication of section 212 (2)(d) which says that where the financial year of subsi is shorter in duration than its holding co. then the financial year of subsi is taken to be two or more financial years duration of which is not less than the duration of its holding co. financial year.

Mine is a pvt. ltd. co., this time its financial year extends up to 15 months which ends in sept. 10 whereas duration of its subsi is 12 months ending in march 2010.

How can we take the two or more years of subsi co. ? Hwz is that possible....???

Kindly reply.

Regards,

Shridhi Jain

Replies (3)

Sudhir Garg

Service

236 Points Posted on 13 January 2011

Hi Shridhi

U/s 212 requisite information / documents are required to be attached only with Holding company Financial statements. The Financial year of subisiary must not end more than six months. in case subsidiary financial year is shorter than HC FY, then two years financial statements are to be attached.

Upto best of my knowledge, no other requirement is to be done. Please clarify which problem you are facing.

Regards

Sudhir

Shridhi Jain

Company Secretary

1678 Points Posted on 13 January 2011

Thanks Sudhir Sir

It means we need to attach the B/S of second last f/y of subsi even if it is already filed last year with the annual filing of holding co. ???

Guest

hi Shridhi,

The Logic behind “Two or More years” as enunciated u/s 212(2)(d) is.. “Companies shall provide the required details for its Subsidiary upto the date, with respect to which Holding company would be filing the same details.

Now if, the two dates of HC & SC are not the same (as in ur case) then the details with respect to SC must be…

1. For the period which must extend to HC’s FY closing date.

2. It may cover the period which may spread over more than one FY

(i,e Two or More FY)

3. Time gap should not exceed by 6 months (else, Section 212(8) would be applicable)

So, in your query, it is enough, if u provide the details of SC with that of HC for the year which would extend to Sep 10 (date of HC’s closing date) & would be spreading over more than one FY, so long time gap does not exceed 6 months.