Question ID :
38019
Consolidated financial statement (
Mr X and Y are directors in M/s A Private Limited , B Private Limited and C Private Limited . In all the three companies both directors hold 50% each .
Doe we need to prepare the Consolidated Financial Statement ? if yes then for which entity and if no, the reason.
Thanks in advance .
Posted by
CA. BISHT RAKESH
on
Mar 07, 2019
Filed Under
CORPORATE & OTHER LAWS
Consolidated is required to be done where there is holding and subsidiary relationship. Holding company is a company which holds more than 50% shares of the another company. Here in the present case none of the shareholder holds more than 50% share in another company. Therefore there is no holding and subsidiary relationship. Hence question of consolidation does not arise.
Posted by
CA. JHA SHANKAR KUMAR on
Mar 07, 2019