Suppose S Pvt. Ltd. is a subsidiary of H pvt. ltd...Now H Pvt. Ltd is holding 41% stake in XYZ ltd and S Pvt. Ltd. is holding 10% stake in XYZ. Now does XYZ Ltd. be termed as a subsidiary of H Pvt. Ltd.??????Plz reply fast....
5 Replies
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 24 November 2010
Read section 4 it clearly mention the meaning of Holding and subsidiary. In your case xyz is not subsidiary of H Pvt Ltd.
udit sharma
(Company Secretary)
(2303 Points)
Replied 24 November 2010
Hi...
Undoubtedly agreed with expert Hardik! In no way XYZ Ltd. can be treated as subsidiary of H Pvt.Ltd.
God Bless
Udit Sharma
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 24 November 2010
Yes,i am too agree with two seniors however XYZ will be treated as group subsidiary under AS 21.and accordingly consolidation of financial statement shall be done.
CA Mudit Agarwal PGDFM,MCP,IFR
(Dy. Manager (Taxation))
(289 Points)
Replied 25 November 2010
linesh is right....
xyz is not a subsidiary of S pvt. ltd. but as per AS 21 it is treated as a group subsidiary....
hence consolidation procedure as per AS 21 will be made.
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