Balance sheet of holding company to include certain particulars as to its subsidiaries - MCA Directions
AS per Section 212 of the Companies Act, 1956;
(1) There shall be attached to the balance sheet of holding company having a subsidiary or subsidiaries at the end of the financial year as at which the holding company's balance sheet is made out, the following documents in respect of such subsidiary or of each such subsidiary, as the case may be :-
(a) a copy of the balance sheet of the subsidiary;
(b) a copy of its profit and loss account;
(c) a copy of the report of its Board of directors;
(d) a copy of the report of its auditors;
(e) a statement of the holding company's interest in the subsidiary as specified in sub-section (3);
(f) the statement referred to in sub-section (5), if any; and
(g) report referred to in sub-section (6), if any.
As per Section 212(8) of the Act, “ The Central Government may, on the application or with the consent of the Board of directors of the company, direct that in relation to any subsidiary, the provisions of this section shall not apply, or shall apply only to such extent as may be specified in the direction.”
A large number of companies have been approaching the Ministry for exemption under Section 212(8).
The matter was examined in the context of the globalizing Indian economy, the increased number of subsidiaries, and the introduction of accounting standards on consolidated financial statements. It has been decided to grant a general exemption provided certain conditions are fulfilled.
MCA General Circular No. ; Dated February 08, 2011