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Compliance of Section 212

sunil prakash jain (Sr.manager) (101 Points)

26 October 2010

Holding Company (Private Limited) Accounts are signed prior to the subsidary companies Accounts. How to take care of section 212 which says that subsidary company accounts be attached to the holding company. Whether the holding company accounts be readopted after the date of signing of subsidary companies balance sheet.

Regards

Sunil

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4 Replies

C.A. LINESH PATIL (CA) (910 Points)
Replied 26 October 2010

So far as i know about section 212 holding company F.Y.can not be end before subsidiary F.Y.

And this is because of, if holding company F.Y. ends before subsidiary company accounts so purpose of attaching document under section 212 of subsidiary company will get defeat.

Also section 212 provides if subsidiary F.Y. ending before holding F.Y.then two more statement will need to be attached for changes in % of holding & other material changes took during the period.however Gap between two cant exceed 6 months.

section does not provide for your situation.

i think you need to take help of section 213 to sum up both company F.Y. coincide .

Or change F.Y. of Subsidiary or holding so that subsidiary F.Y. can end before Holding company F.Y.

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sunil prakash jain (Sr.manager) (101 Points)
Replied 27 October 2010

Financial year of Holding & Subsidary Companies are same.Only the holding co.accouts are signed say in May 10 whereas subsidary company accounts are signed in June 10.

Ajay Mishra (Company Secretary) (74337 Points)
Replied 27 October 2010

The subsidiaryes acounts should be signed before the signing of holding acounts,because the accounts of the subsidiaries is also take note on the holding company meeting.

Other views are also solicited

Regards