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CS Professional · Drafting, Pleadings and Appearances · Documents under Companies Act, 2013

Parvati Infra Ltd has two subsidiaries. At its annual general meeting the board lays only the standalone financial statements, saying the subsidiaries' accounts are filed separately. Which statement is correct under section 129?

A holding company must prepare consolidated financial statements covering itself and all subsidiaries, in the same form and manner as its own, and lay them at the AGM with its standalone statements. A separate salient-features statement of subsidiaries is attached in addition.

  1. AThis is correct, as consolidation is optional for a holding company
  2. BThe company must prepare consolidated financial statements of itself and all subsidiaries in the same form and manner as its own, and lay them along with its standalone statements, with a separate statement of salient features of the subsidiaries' statements attachedCorrect
  3. COnly a statement of salient features of the subsidiaries is needed, with no consolidation
  4. DConsolidated statements need be laid only before the Registrar and not at the general meeting

Explanation

Section 129(3) requires a company with one or more subsidiaries to prepare consolidated financial statements in the same form and manner as its own, and lay them at the AGM along with the standalone statements. A separate statement of salient features of the subsidiaries' statements is attached in addition, not instead.

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