Query: Is consolidation of financial statements required if a company does not have any subsidiary company but has 1-2 associate companies.
Answer: No, As per the Companies (Accounts) Amendment Rules, 2014 dated 14/10/2014, Consolidation of financial statements shall not be required in case a company does not have any subsidiary company but has associate companies.
MCA has issued Clarification with regard to circulation & filing of financial statements under the provisions of the Companies Act, 2013 vide General Circular 11/2015 dated 21.07.2015. Accordingly, if Companies calling their AGM at shorter meeting in compliance to the provisions of Section 101, can circulate Annual financial statements to be laid/considered at said AGM, at such shorter notice. Further, it is clarified that in case of a foreign subsidiary, which is not required to get its accounts audited as per legal requirements prevalent in their country, the holding Indian company may place/file such unaudited accounts to comply with requirements of Section 136(1) and 137(1) as applicable. These, however, would need to be translated in English, if the original accounts are not in English