Consolidation of Financial Statement

This query is : Resolved

Brijesh Patel (Querist)
Follow

10 November 2010 Is consolidation of subsidiary a/c with holding company a/c a legal requirement?

Is there any provision in the companies act related to consolidation of financial statement of holding and its sibsidiary(ies)?

Whether holding company which is private limited company are required to prepare consolidated financial statement of their susidiary(ies)?

Brijesh.

CS Nikita Sheth

CS Nikita Sheth (Expert)
Follow

10 November 2010 Hi Brijesh!!

Consolidation of subsidiary a/c with holding co is a legal requirement.

Section 212 of the Companies Act,1956 speaks for the same.

Answering to your last query, section 212 applies to all companies i.e. public as well as private.so, in your case, pvt co. which holding co. is required to prepare consolidated financial statement of their susidiary(ies)