Holding and subsidary relation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2010 QUERY FOR OPINION:
There are Four Companies
X Private Limited
Y Private Limited
Z Private Limited
A Limited
Shareholding Pattern:
X Private Limited: 100% holding by the Directors/Relatives
Y Private Limited: 33.33% holding by X Private Limited
Z Private Limited: 33.33% holding by X Private Limited
A Limited : 50% holding by X Private Limited/ Director of X Private Limited
Board of Directors:
X Private Limited: 4 Directors
Y Private Limited: 3 Directors Out of Which 1 Director from X Private Limited
Z Private Limited: 3 Directors Out of Which 1 Director from X Private Limited
A Limited : 3 Directors out of which 2 Directors from X Private Limited

Now Query is What is relationship between these four companies, considering the X Private Limited as the main Company?
Whether other mentioned company became the subsidiary of X Private Limited?
Whether the Audited Accounts or Abstract as per Section 212 are to be attached Holding Company?
Whether Consolidated Balance sheet is required to be made?
What will happen, in case pattern of shareholding and Board of Directors changes of Subsidiary Companies?

Abhishek

Abhishek (Expert)
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03 June 2010 A LTD: Subsidiary of X PVT LTD.
Y PVT LTD: No relation (Companies Act), Associate Company (Accounting Standard)
Z PVT LTD: No relation (Companies Act), Associate Company (Accounting Standard)

Audited Accounts and abstracts only for A ltd.

Yes, CFS for A LTD and X PVT LTD (If Non-SMC or Level -I Company)

Hope will resolve your query

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Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2010 "Yes, CFS for A LTD and X PVT LTD (If Non-SMC or Level -I Company)"

What does SMC or Level 1 company stands for????

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Abhishek

Abhishek (Expert)
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04 June 2010 Small and Medium-Sized Company (SMC) as defined in Clause 2(f) of the Companies (Accounting Standards) Rules, 2006:

(f) “Small and Medium Sized Company” (SMC) means, a company-

whose equity or debt securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India;

which is not a bank, financial institution or an insurance company;

whose turnover (excluding other income) does not exceed rupees fifty crore in the immediately preceding accounting year;

which does not have borrowings (including public deposits) in excess of rupees ten crore at any time during the immediately preceding accounting year; and

which is not a holding or subsidiary company of a company which is not a small and medium-sized company.

Criteria for classification of non-corporate entities as decided by the Institute of Chartered Accountants of India

Level I Entities

Non-corporate entities which fall in any one or more of the following categories, at the end of the relevant accounting period, are classified as Level I entities:

Entities whose equity or debt securities are listed or are in the process of listing on any stock exchange, whether in India or outside India.

Banks (including co-operative banks), financial institutions or entities carrying on insurance business.

All commercial, industrial and business reporting entities, whose turnover (excluding other income) exceeds rupees fifty crore in the immediately preceding accounting year.

All commercial, industrial and business reporting entities having borrowings (including public deposits) in excess of rupees ten crore at any time during the immediately preceding accounting year.

holding and subsidiary entities of any one of the above.

Level II Entities (SMEs)

Non-corporate entities which are not Level I entities but fall in any one or more of the following categories are classified as Level II entities:

All commercial, industrial and business reporting entities, whose turnover (excluding other income) exceeds rupees forty lakh but does not exceed rupees fifty crore in the immediately preceding accounting year.

All commercial, industrial and business reporting entities having borrowings (including public deposits) in excess of rupees one crore but not in excess of rupees ten crore at any time during the immediately preceding accounting year.

Holding and subsidiary entities of any one of the above.

Level III Entities (SMEs)

Non-corporate entities which are not covered under Level I and Level II are considered as Level III entities.