Financial Daily from THE HINDU group of publications
Monday, Mar 18, 2002

Port Info

Group Sites

Corporate - Regulatory Bodies & Rulings

Financial details of arms: DCA against waiver

Richa Mishra

NEW DELHI, March 17

THE Department of Company Affairs (DCA) is not in favour of doing away with the current requirement of enclosing the financial statements of subsidiaries along with that of the holding companies in the latter's annual reports.

"The Department had been receiving applications from public sector undertakings (PSUs) as well as multinationals for such exemptions. DCA has been taking decisions on these exemptions on case-to-case basis," sources told Business Line.

Section 212 of the Companies Act, 1956 provides that the balance sheet of holding company will include certain particulars as to its subsidiaries including the balance sheet of the subsidiary, profit and loss account, report of the board of directors and auditor reports. "Cases where the situation has been beyond the control of the company, the Department has been using its discretion and granting exemptions," sources said.

One of the excuses of the companies has been that attachment of these documents makes the annual report more heavy and involves high costs.

Brushing aside the excuses, professionals say that anyway the companies have to prepare balance sheets for the individual companies before they are consolidated, and therefore, attachment of the accounts should not pose any problem.

Send this article to Friends by E-Mail

Stories in this Section
Hazira gas reserves revised upwards by 6 b cu. m

Hudco seeks to float capital gains tax-free bonds
Dipping into share premium a/c -- Tata Engg to hold EGM on March 27 to get nod
MTNL to invest Rs 300 cr in ITI -- Deal may prove a win-win for both
Premium narrows for most ADRs
Financial details of arms: DCA against waiver
Virtual wallet fom Vodafone, T-Mobile
ICICI Info in talks for China venture
BPCL, Cummins Auto pact for maintenance services
Seshasayee Paper: Marketing without undue pressure
Cos seek review of changes made in remuneration norms
Few cos yet to fall in line with `interim' fiat
HPF launches digital imaging, laser print films
Sandvik Coromant lines up tooling solutions range

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line