before the company law board - Company Law Board Mumbai Bench

16authorize its representatives to inspect the books of accounts keptby any of its subsidiaries and books of accounts of any suchsubsidiary shall be opened to inspection by those representatives atany time during business hours, as contemplated under section214(1) of the Companies Act, 1956. Even though there is nospecific definition in the provisions of the Companies Act inrespect of the foreign registered subsidiary company, however, theabove noted provisions of the Act are very clear that therepresentatives of the holding company may inspect the books ofaccounts of the subsidiary company, whether it is Indian registeredor foreign registered. Further the holding company has to attachthe Annual Report of the subsidiary company along with astatement of the holding company’s interest as specified in subsection(3) of section 212. Besides, the holding company has toprepare a consolidated financial statement taking into account thesubsidiary company’s financial data as required under IndianAccounting Standards 21 read with Sec.211(3A). Further, as perSection 211 read with Schedule VI of the Companies Act, theforeign subsidiary company’s balance sheet has to be prepared asper the Indian Companies Act for attaching to the holdingcompany’s balance sheet. The foreign subsidiary company as usualshall file its balance sheet and other requirements as per the lawsgoverned therein. Thus the provisions of Indian Companies ActCA 177 of 2010Multi Screen