The Ministry of Corporate Affairs (MCA) amended the Companies (Accounts) Rules, 2014 vide notification dated 27th July, 2016 by the
Companies (Accounts) Rules, 2016. The summary of same is as under:
1. Intermediate subsidiary
is not required to consolidate accounts of its subsidiary if the following
conditions are fulfilled:
a. The shareholders i.e, equity and preferences shareholders of
subsidiary company has been informed in writing and the proof of delivery of
such intimation is maintained by the Company;
b. The subsidiary company
is neither listed nor intends to be listed either in India or abroad and
c. The ultimate or any
intermediate holding company files consolidated financial statements with the
Registrar
2. The Board report to
contain the highlights of performance of subsidiaries associates and joint
venture companies and their contribution to the overall performance of the
company during the period under report
3. An individual or a partnership firm or a body corporate of
‘Chartered Accountant" or "Cost Accountant' can be appointed as the
internal auditor.
The said notification can be downloaded from the following link:
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