We are Unlisted Public Ltd Co, having a wholly owned subsidiary in Mauritius. That subsidiary has 2 subsidiaries and one wholly owned subsidiary in Mauritius. All these step down subsidiaries are making losses. However, our WOS based in Mauritius are not consolidating those loss making subsidiaries as per IFRS 10-CFS. Thus our Indian parent's books of accounts do not capture those step down subsidiaries except the main subsidiary. Is it violatibe?
2 Replies
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5128 Points)
Replied 18 September 2024
Jayanta Bandyopadhyay
(310 Points)
Replied 18 September 2024
Thanks.Sir.
Yes. Our WOS in Mauritius has full control over all step down subsidiaries. All SDS are loss making. They have eaten up about 30% NW of WOS. Since parent company remits all funds to WOS, ultimately it has ramification down the line.
Surprisingly, all directos are common- Directors of Parent Company of India are on also on the boards of all subsidiaries.
While foreign auditor gives a casual note in report, my reading is that Indian audit firms are not much alive. NFRA is yet to control ICAI.
Considering certain issues, seeking your guidance on this.
Regards,
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