TCS has disclose the share of its section 8 subsidiary TCS foundation under investment my question is whether investment in section 8 company considered as investment.?
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Quick Summary
This discussion clarifies whether an investment in a Section 8 subsidiary, like the TCS Foundation, is considered a standard investment. While Section 129 of the Companies Act, 2013, treats it as an application of money rather than a typical investment, AS 21 allows for consolidation if economic benefits are received. The consensus is that fulfilling the subsidiary's objectives can be considered an economic benefit for the parent company.
Yes, as per the standards it will be considered as an investment as the company even tho not getting any dividend from the company still be eligible to show it as investment
As per sec 129 of companies act, 2013 an investment in sec 8 company shall be shown as an application of money in the balance sheet and the holding company cannot be be shown as an investment however as per AS21 if the the holding company has an ownership in such company then the consolidation can be done if any sort of economic benefits are received by the holding company of such sec 8 company