Is it compulsory for every Holding company to incorpoarte the A/c's of its Subsidiary Co?
As Sec 212 of Companies Act 1956 does not prescribe incorpaoration of subsidiary books mandatory for every Holding co AND AS 21 provides only the procedure to how to incorporate.
Clause 32 of SEBI orders the listed co. to prepare :-
1) Consolidated Balance sheet of the co. with its subsidiaries
2) Cash flow statement
AS 21 only provide the process & procedures about how to conolidate the accounts in whole AS 21 there is no paragraph which makes the co. to prepare consolidated balance sheet mandatory
& Sec 212 provide the document which are neccesary to be accompanied by Consolidated Balance sheet.
thank u Shivam i jst wanted to clear it
CAclubindia
