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Subsidiary company

In case A Ltd holds 55% in B Ltd and 40% in C Ltd. B Ltd holds 20% in C Ltd Then C Ltd indirectly becomes subsidiary of A Ltd through B Ltd So in the above case whether it is required to prepare consolidated financial statements by consolidating C Ltd?


Swathi Krishna

Swathi Krishna

CA Inter

7K+

16-Jul-20

45

Answers (6)

Exemptions for preparation of financial statements: Preparation of CFS is not required if its ultimate or any intermediate holding company files CFS with registrar which are in compliance with the applicable Accouunting standards Altd is required to file CFS.


Lavanya Chitturi

Lavanya Chitturi

CA Inter

895

17-Jul-20

So does that mean A Ltd is not required to prepare consolidated financial statements with respect to C Ltd ?


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

17-Jul-20

A ltd. Should prepare CFS and Blt. should provide A ltd. Statement of salient features to A ltd which would be prepared along with CFS.


Lavanya Chitturi

Lavanya Chitturi

CA Inter

895

20-Jul-20

What about the information of c Ltd B Ltd should provide that


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

20-Jul-20

C ltd. will be ultimately considered by B ltd while preparing such Statement of salient features.


Lavanya Chitturi

Lavanya Chitturi

CA Inter

895

20-Jul-20

K thax


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

20-Jul-20

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