Form 23AAB

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Puniti (Querist)
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13 March 2009 Can anyone plz apprise me as to what could be the reason / justification for seeking exemption and the nature of exemption under Section 212(8) of the CA, 1956 w.r.t. exemption from attaching annual accounts of the subsidiary companies to a holding company.

Jagruti (CS)

Jagruti (CS) (Expert)
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13 March 2009 Below are some Reasons or Justification for claiming the exemption u/s 212(8)
- Company is already providing the details of transaction with subsidiary under notes to accounts in AS-18
- Under Part 1 of Schedule VI co. is required to provide the details of subsidiaries seperately under folloing heads:
(i) Secured Loans and advances taken from Subsidiaries.
(ii) Unsecured Loans advances taken from subsidiaries
(iii) Current Liabilities from Subsidiary Companies
(iv) Investments in Subsidiary Companies
(v) Loans and Advances given to Subsidiary Companies.
- Disclosure requirements prescribed by SEBI under clause 32 if it is a listed
- if Company is big entity, u can also compare it with global scenario i.e. in foreign Co there is no such requirement eg. Chevron Texaco...
- If listed than all such details are as req u/s 212(1) are put in Consolidated Accounts as per listing agreement
Thus on basis of above reasons one can claim exemption