Hi Friends,
Recently I came across one private ltd. Energy company which was incorporated in MUMBAI - but when I looked into its structure I was bit confused as this company has incorporated 10 different compnies in same name with the state's name in which it was located. eg the XYZ Energy Pvt Ltd in mumbai with
|
Authorised Capital(in Rs.) |
: 910,000,000.00 |
|
Paid up capital(in Rs.) |
: 292,158,000.00 |
But it also incorporated one in Rajashtan
XYZ ENERGY (RAJASHTAN) Pvt Ltd with
|
Authorised Capital(in Rs.) |
: 1,00,000.00 |
|
Paid up capital(in Rs.) |
: 1,00,000.00 |
One in RAJKOT
XYZ ENERGY (RAJKOT) Pvt Ltd with
|
Authorised Capital(in Rs.) |
: 1,00,000.00 |
|
Paid up capital(in Rs.) |
: 1,00,000.00 |
And so on
In same manner the company has created 10 companies in 10 different places with same kind of name with just the states name in it as a change and with the same amount of Authorised cap and paid up with same contact persons name...which we can term as its 10 wholly owned subsidiaries .
BUT MY question is ,
what could be the logic behind this kind of structure - why cant the company just open its office as branch office?
why this company created a new comapny incurring huge expenses in incoroperating 10 different companies - it could have simplly open its branch office or so
Please explain me if some one has views on this -
Regrads
CAclubindia
