plz help

Hi Shivang,

First break the above into 2 part as below to understand -

1. Provided further that nothing in this rule shall apply in respect of preparation of consolidated financial statement by an intermediate wholly-owned subsidiary

Eg. Co. A this is subsidiary of Co.Z, also there is one more Co. C (this is subsidiary of Co. A), here Co A need not require to prepare a consolidated FS, since Co. Z, which is a parent company, will be preparing the consolidated FS. (incl Co. A & Co. C).

2.other than a wholly-owned subsidiary whose immediate parent is a company incorporated outside India:

Eg. Co. B this is subsidiary of Co.Y (Foreign Company incorporated outside India), also there is one more Co. D (this is subsidiary of Co. B), here Co B need to prepare a consolidated FS (including Co. B), since Co. Y, which is a parent company (Foreign company outside India) will not be filing the accounts here in India.

Hope your doubt is cleared.

Also anyother interpretation is welcome and wherever I am wrong request to correct my understanding.

All the best.