Balance sheets of subsidiaries

78 Balance sheets of subsidiaries.

1. MCA vide General Circular No.
2/2011No.:51/12/2007-CL-III issued on 8th February 2011, has given general
exemption u/s.212(8) of the Companies Act provided certain conditions as follows
are fulfilled.

The Central Government hereby directs that
provisions of section 212 shall not apply in relation to subsidiaries of those
companies which fulfil the following conditions :

(i) The Board of Directors of the company has by
resolution given consent for not attaching the balance sheet of the subsidiary
concerned;

(ii) The company shall present in the annual
report, the consolidated financial statements of holding company and all
subsidiaries duly audited by its statutory auditors;

(iii) The consolidated financial statement shall
be prepared in strict compliance with applicable Accounting Standards and,
where applicable, Listing Agreement as prescribed by the Security and Exchange
Board of India;

(iv) The company shall disclose in the
consolidated balance sheet the following information in aggregate for each
subsidiary including subsidiaries of subsidiaries : (a) capital (b) reserves
(c) total assets (d) total liabilities (e) details of investment (except in
case of investment in the subsidiaries) (f) turnover (g) profit before
taxation (h) provision for taxation (i) profit after taxation (j) proposed
dividend;

(v) The holding company shall undertake in its
annual report that annual accounts of the subsidiary companies and the related
detailed information shall be made available to shareholders of the holding
and subsidiary companies, seeking such information at any point of time. The
annual accounts of the subsidiary companies shall also be kept for inspection
by any shareholders in the head office of the holding company and of the
subsidiary companies concerned and a note to the above effect will be included
in the annual report of the holding company. The holding company shall furnish
a hard copy of details of accounts of subsidiaries to any shareholder on
demand;

(vi) The holding as well as subsidiary companies
in question shall regularly file such data to the various regulatory and
Government authorities as may be required by them;

(vii) The company shall give Indian rupee
equivalent of the figures given in foreign currency appearing in the accounts
of the subsidiary companies along with exchange rate as on the closing day of
the financial year;