25 July 2024
Yes, it is mandatory to file the consolidated balance sheet of the holding company along with Form 23ACA in XBRL format. Here’s why:
### Requirement for Consolidated Financial Statements:
1. **Companies Act Requirement:** - As per Section 129 of the Companies Act, 2013, a company (including its subsidiaries) is required to prepare consolidated financial statements where the company has one or more subsidiaries. - Consolidated financial statements provide a comprehensive view of the financial position of the entire group, including the holding company and its subsidiaries.
2. **XBRL Filing Requirement:** - Form 23ACA is required to be filed with the Ministry of Corporate Affairs (MCA) in XBRL format for the financial statements of the company. - XBRL (eXtensible Business Reporting Language) is a format that allows companies to present financial information in a standardized manner that can be easily analyzed and compared.
3. **Contents of Form 23ACA - XBRL:** - Form 23ACA in XBRL format includes the financial statements of the company, including the balance sheet, profit and loss account, and other financial information as required by the MCA. - For a holding company with subsidiaries, the consolidated financial statements (which include the balance sheet of the holding company and all its subsidiaries) must be prepared and filed.
### Practical Implications:
- **Consolidated Balance Sheet:** The consolidated balance sheet includes the assets, liabilities, and equity of the holding company and its subsidiaries. It provides a combined view of the financial health and performance of the entire group.
- **Filing in XBRL:** When filing Form 23ACA in XBRL format, ensure that the consolidated financial statements are prepared correctly. This involves aggregating the financial information of the holding company and all its subsidiaries into a single set of statements.
### Compliance and Penalties:
- **Non-compliance:** Failure to file accurate and complete financial statements, including consolidated statements where required, may lead to penalties under the Companies Act. - **Audit and Verification:** The financial statements must be audited by a qualified auditor before submission to ensure accuracy and compliance with accounting standards.
In conclusion, yes, it is mandatory to file the consolidated balance sheet of the holding company along with Form 23ACA in XBRL format. This requirement ensures transparency and accountability in financial reporting, providing stakeholders with a complete view of the group’s financial performance. Always adhere to the guidelines issued by the MCA and seek professional advice if needed to ensure compliance with regulatory requirements.
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