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

Surya Holdings Ltd has two subsidiaries. Besides its own financial statements, what must it do under Section 129 for the annual general meeting?

The company must prepare consolidated financial statements covering itself and its subsidiaries, lay them before the AGM along with its own statements, and attach a separate statement of the salient features of the subsidiaries' financial statements, as Section 129(3) requires.

  1. APrepare consolidated financial statements with its subsidiaries and lay them before the AGM, attaching a statement of salient features of the subsidiaries' financial statementsCorrect
  2. BLay only its standalone financial statements, since subsidiaries are separate companies
  3. CPrepare consolidated statements but file them only with the Registrar, not lay them before the AGM
  4. DAttach the subsidiaries' full audit reports in place of any consolidated statements

Explanation

Section 129(3) requires a company with subsidiaries to prepare consolidated financial statements in the same form and manner as its own, and lay them before the AGM along with the standalone statements. The proviso also requires a separate statement of the salient features of the subsidiaries' statements to be attached.

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