Section 212

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Shweta

Service

68 Points Joined February 2008

Company A, has subsidiary abroad. In compliance with Section 212, i want to attach its financials, audit report,. directors report. Is financial and DR, AR is to be as per indian companies act.??? or only financials disclosure must be as per companies act

Replies (5)

CS Vivek Hegde

COMPANY SECRETARY

713 Points Joined December 2008

Dear Shwetha

It must be as per indian companies act..

rgds

Vivek

B.Dhanaraj

Lawyer

22 Points Joined July 2009

Originally posted by :Shweta
"	Company A, has subsidiary abroad. In compliance with Section 212, i want to attach its financials, audit report,. directors report. Is financial and DR, AR is to be as per indian companies act.??? or only financials disclosure must be as per companies act	"

In response to your query, I would like to point out that , Company A being the holding Company in India and being governed by the Indian Companies Act, 1956 , it is usual that you follow, the financial and DR, AR as per indian companies act. However, if the subsidiary is incorporated in a foreignstate , which requires a subsidiary of a foreign company , then those set of laws will apply.

CS Vivek Hegde

COMPANY SECRETARY

713 Points Joined December 2008

Dear Dhanraj

What u r saying is logically correct. But section 212 (2) clearly says the financials of foreign subsidiaries should be made as per THIS act. Kindly appreciate.

rgds

CS Vivek Hegde

Ajay Mishra

Company Secretary

74352 Points Joined March 2009

Dear Ms. Shweta

Section 212 of the Companies Act, 1956 says the balanc-sheet, profit and loss account, director report and auditors report should be made out in accordance with the requirement of the Companies Act, 1956. Thus u can attached the documents specified under sub-section (1) of section 212 as per Companies Act, 1956.

Best Regard

Shubham

Mangement Trainee

24 Points Joined September 2009

Dear Sirs,

I am sorry to contradict you all but there is no provision under ICA, 1956 to submit the DR, AR, balance sheet or Profit & Loss a/c as per the act. Section 212(2) does not state about "FOREIGN COMPANY". the section is about "SUBSIDIARY".

A company MAY opt to make the financial statements according to ICA.