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First Notes - 16 August 2016

First Notes - 16 August 2016

The MCA issues amendments for consolidated financial statements of wholly-owned and partially-owned subsidiaries


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The Ministry of Corporate Affairs (MCA) has been issuing various amendments and clarifications to the Companies Act, 2013 (2013 Act) and its corresponding Rules to ease the implementation of the 2013 Act.

The 2013 Act through Section 129(3) of the 2013 Act prescribes the requirements for preparation of the Consolidated Financial Statements (CFS).

On 14 October 2014, the MCA provided an exemption from the preparation of CFS to wholly-owned intermediate companies incorporated in India under certain circumstances.

New development

Recently, the MCA through a notification dated 27 July 2016 issued the Companies (Accounts) Amendment Rules, 2016 (the Rules) that provide following amendments to following rules:

  • Rule 6 on manner of consolidation of accounts
  • Rule 8 on matters to be included in the Board’s report
  • Rule 13 on companies required to appoint internal auditor.

Additionally, MCA has extended the last date of filing of annual returns and financial statements forms. 

Our First Notes provide an overview of the above MCA amendments.

To access the text of the MCA notification,     

  • Companies (Accounts) Amendment Rules, 2016, please click here.   
  • Circular for relaxation, please click here.

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