This query is with regard the compliance of section 212 of the Companies Act, 1956.
If the laws of the country in which the subsidiary is registered does not require the accounts to be audited mandatorily, Still is it necessary to get the accounts of subsidiary audited?
Or the signatures of the directors of subsidiary are sufficient on the financials.
13 August 2012
The Ministry of Corporate Affairs, Govt, of India vide its circular 2/2011 dated 28th February 2011 has granted an exemption to the Companies under Section 212(8) of the Companies Act 1956 from attaching accounts along with the report of the Board of Directors as required by Section 212( 1) of the Companies Act 1956 of the Subsidiary Companies to the Balance Sheet of the holding Company . As far as I know,it is mandatory to get the accounts of subsidiaries audited as the holding Company is in India(come under Companies Act 1956)only thing is it need not require to attach with that of holding Company.
The circular says that if the consolidated financials are audited by the statutory auditors of the holding company, the balance sheet of subsidiary need not be attached to that of the holding company.
Does this mean that the balance sheet of the subsidiary need not be separately audited?
CAclubindia
