10 December 2009
To understand the provisions of Holding Company and Subsidiary Company; treat them like a big family business. Grandfather established business in Surat, thenafter Father and one uncle developed business in Ahmedabad and finally grandson shifted the Mumbai. On the eve of Diwali all will meet together and prepare a balance sheet of family.
It will also be possible that some transactions (for example money) has been sent by one location to another. But ultimtately it belongs to same family. So at the time of consolidation; these type of transactions will be removed.
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