20 December 2008
There are two companies ;Company-1. an established pvt. mfg. company having a business potential of 30-35 crore ( having production capacity to double) and assets value of Rs,10-15 core. Company-2. is a newly formed ltd. compny in business is less then two year and turnover is around 5-6 crore. Is it correct to make the company-1 to subsidiary of company-2( which is a ltd. company). Can any one suggest me a correct answer! if not what best thing can be done in view of a public issue in future?
CAclubindia
