While the Companies Act, 2013 (the Act) has been largely operationalised from 1 April 2014, the Ministry of Corporate Affairs (MCA) has been issuing various amendments and clarifications to the Act and the corresponding Rules to ease the implementation of the Act.
The Act, vide section 129(3), prescribes the requirements for preparation of the consolidated financial statements (CFS).
Through a notification issued on 16 January 2015, the MCA has provided
transitional relief to companies that have one or more subsidiaries incorporated outside India from preparation of CFS for the purpose of reporting for the first financial year under the Act.
Our First Notes explains the amendment issued by the MCA. For the text of the notification released by the MCA, please click here.
© 2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.