EFFECT OF COMPANIES BILL, 2011 ON CONSOLIDATION OF ACCOUNTS

Companies_Bill_190

  • Restriction on step down subsidiary

Companies Act, 1956 :
No Restriction
Companies Bill, 2011 :
Class or classes of holing companies as may be prescribed shall not have layers beyond such numbers as may be prescribed.

  • Preparation of Consolidated Financial Statements

Companies Act, 1956 :
No Provisions
Companies Bill, 2011 :
In Case a company has one or more subsidiaries, it shall in addition to standalone financial, prepare a consolidated financial statement of all the subsidiaries in the same form and manner as that is its own which shall also be laid before the AGM of the company.
Further such company shall also attach along with its financial statements, a separate statement containing the salient feature of the financial statement of its subsidiaries in such form as may be prescribed For the purpose of above, “Subsidiary” shall include “associate company” and “joint venture”.