Companies Act, 2013--Consolidated Financial Statements

Overview of Consolidated Financial Statements

CA. Deepak Harwani

In the present article the learned author discusses about the preparation of consolidated financial statements as mandated by the Companies Act, 2013 the power of Central Government to inspect books of account, issuance of show cause notice in case of non-compliance, and process of compounding of application.

1. Introduction

Consolidated financial statements are prepared by a parent company that owns multiple divisions, subsidiaries, or associate companies. These statements combine the financial data of the parent and all its subsidiaries into a single set of financial reports. The main goal is to present a comprehensive view of the entire group's financial performance and position, treating the parent and its subsidiaries as if they were one unified entity

2. Provisions in relation to Companies Act, 2013