consolidation of financial statments final project (1) (1)

8/18/2019 Consolidation of Financial Statments Final Project (1) (1)

1/35

A PROJECT REPORT ON

CONSOLIDATION OF FINANCIAL STATEMENTS

SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR

MASTER OF COMMERCE (M. COM)

ACCOUNTANCY GROUP

SEMESTER- I

IN THE SUBJECT

ADVANCED FINANCE ACCOUNTING

TO

UNIVERSITY OF MUMBAI

BY

VIVEK DHANJI CHAUHAN

ROLL NO. 11

201-201!

UNDER THE GUIDANCE OF

PROF. PARAS JAIN

SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

B- ROAD" CHURCHGATE (E) M#$%&' 00 020

Page1


2/35

DECLARATION

I, VIVEK DHANJI CHAUHAN" *#+,* / M&*, / C$$,, (M. C$.) A#*& G#3

S,$,*,- I" R44 N. 11 / SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS B-

ROAD CHURCHGATE (E) M#$%&' 00 020" 5,,% +,4&, *5&* I 5&6, $34,*,+ *5, 37,*

C4'+&*' F'&'&4 S*&*,$,* ' *5, #%7,* A+6&,+ F'&, A#*'8 / *5,

A&+,$' Y,& 2019-1.

::::::::::::::

VIVEK DHANJI CHAUHAN

D&*,;

Page2


3/35

CERTIFICATE

I" PARAS JAIN 5,,% ,*'/ *5&* VIVEK DHANJI CHAUHAN" R44 N 11 / M. C$.

S,$,*, I / SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS " 5& #,/#44

$34,*,+ 37,* C4'+&*' F'&'&4 S*&*,$,* ' *5, #%7,* A+6&,+ F'&,

A#*'8 / *5, A&+,$' Y,& 2019-1.

________________ _________________

I*,&4 G#'+, E


4/35

ACKNO=LEDGEMENT

A* *5' 7#*#," I >#4+ 4'?, * ,5 5&6, 5,43,+ $,

+',*4 '+',*4 +#'8 *5' 37,*.

M ',, *5&? * PARAS JAIN / 5' >54, 5,&*,+ #33*" *#*'6, &+6', &+

3&*'&4 8#'+&,. I >#4+ &4 4'?, * *5&? *5, 44,8, 4'%& / *5, ,/,,, $&*,'&4 &+

'/$&*' #,+.

:::::::::::::::::::::::::

(VIVEK DHANJI CHAUHAN)

Page4


5/35

E@ECUTIVE SUMMERY

Today’s corporations continue to face a vast range of complex financial reporting requirements, and

ever-increasing scrutiny by auditors and stakeholders. hile transaction systems such as enterprise

resource planning !"#$% systems typically have general ledger modules that summari&e results at

period-end, "#$s on their o'n are not adequate to support the extended financial close process.

(inancial consolidation and reporting applications add significant value by enabling flexible, accurate

and rapid reporting, and integrate easily 'ith any "#$ system. (inancial consolidation and reporting

applications are a key component of the extended financial close ) enabling an integrated andstreamlined process - all the 'ay from the recording of transactions through periodic regulatory filing.

(inancial consolidation and reporting applications automate the extended financial close across

multiple hierarchies and include support for all of the special calculations required by *+-$, I(#+

and other regulatory reporting standards.

Page5


6/35

INDE@

CHAP

TER.

N.

PARTICULARS

PAGE

NO.

I Introduction -/0

II pplicability /1-/1

III dvantages /2-/2

IV +cope /3-/4

V $resentation of consolidated (inancial +tatement

/-/

VI 5onsolidation $rocedure /6-03

VII 7alance +heet 04-06

VIII +tatement of $rofit 8 9oss 0:-11

I@ 7ibliography 12-12

Page6


7/35

CHAPTER- I

INTRODUCTION

The ob;ective of this +tandard is to lay do'n principles and procedures for preparation and presentation

of consolidated financial statements. 5onsolidated financial statements are presented by a parent !also

kno'n as holding enterprise% to provide financial information about the economic activities of its

group. These statements are intended to present financialinformation about a parent and its subsidiary

!is% as a single economic entity to sho' the economic resources controlled by the group, the obligations

of the group and results the group achieves 'ith its resources.


8/35

presentation of consolidated financial statements. 5onsolidated financial statements are presented for a

group of entities under the control of a parent. =parent= is an entity that has one or more subsidiaries.

group comprises a parent and its subsidiaries. Thus, consolidated financial statements are the financial

statements of a group presented as those of a single entity. + 0/ is applicable to a parent that presents

consolidated financial statements. In other 'ords, 'henever a parent decides to prepare and present

consolidated financial statements, it should do so in accordance 'ith the requirements of ccounting

+tandard !+% 0/, 5onsolidated (inancial +tatements.

5onsolidated financial statements normally include consolidated balance sheet, consolidated statement

of profit and loss, and notes, explanatory material that form an integral part thereof, and also

consolidated cash flo' statement !in case a parent presents its o'n cash flo' statement%. 5onsolidated

financial statements are presented, to the extent possible, in the same format as adopted by the parent

for its separate financial statements.

n entity 'hich prepares the consolidated financial statements, either under any la' or regulation gov-

erning the entity or suomotu, might be required to or other'ise engage a member for conducting the

audit of consolidated financial statements. The auditor of the consolidated financial statements may not

necessarily be the auditor of the separate financial statements of the parent or one or more of the

components included in the consolidated financial statements. ote provides guidance on the specific issues and audit procedures to be applied

in an audit of consolidated financial statements.

/. This +tandard should be applied in the preparation and presentation of consolidated financial

statements for a group of enterprises under the control of a parent.

Page8


9/35

0. This +tandard should also be applied in accounting for investments in subsidiaries in the separate

financial statements of a parent.

1. In the preparation of consolidated financial statements, other ccounting +tandards also apply in

the same manner as they apply to the separate financial statements

2. This +tandard does not deal 'ith?

!a% methods of accounting for amalgamations and their effects on consolidation, including good'ill

arising on amalgamation !see + /2, ccounting for malgamations%@

!b% accounting for investments in associates !at present governed by + /1, ccounting for

Investments%

!c% accounting for investments in ;oint ventures !at present governed by + /1, ccounting for

Investments%

3. (or the purpose of this +tandard, the follo'ing terms are used 'ith the meanings specified?

3./ C*4;

!a% the o'nership, directly or indirectly through subsidiary!ies%, of more than one-half of the voting

po'er of an enterprise@

!b% control of the composition of the board of directors in the case of a company or of the

composition of the corresponding governing body in case of any other enterprise so as to obtain

economic benefits from its activities.

3.0 #%'+'& is an enterprise that is controlled by another enterprise

Page9


10/35

!kno'n as the parent%.

3.1 3&,* is an enterprise that has one or more subsidiaries.

3.2 8#3 is a parent and all its subsidiaries.

3.3 C4'+&*,+ /'&'&4 *&*,$,* are the financial statements of a group presented as those of a

single enterprise

3.4 E#'* is the residual interest in the assets of an enterprise after deducting all its liabilities.

3. M''* '*,,* is that part of the net results of operations and of the net assets of a subsidiary

attributable to interests 'hich are not o'ned, directly or indirectly through subsidiary!ies%, by the

parent.

4. 5onsolidated financial statements normally include consolidated balance sheet, consolidated

statement of profit and loss, and notes, other statements and explanatory material that form an

integral part thereof. 5onsolidated cash flo' statement is presented in case a parent presents its o'n

cash flo' statement. The consolidated financial statements are presented, to the extent possible, in

the same format as that adopted by the parent for its separate financial statements.

Page10


11/35

ACCOUNTING STANDARD 21; CONSOLIDATED FINANCIAL STATEMENTS

A To be applied in the preparation and presentation of consolidated financial statements!5(+% for a

group of enterprises under the control of a parent. 5onsolidated (inancial +tatements is

recommendatory.


12/35

A 5ontrol means the o'nership directly or indirectly through subsidiaries, of more than one-half of the

voting po'er of an enterprise or control of the composition of the board

of directors or such other governing body, to obtain economic benefit. +ubsidiary is anenterprise that is

controlled by parent.

A 5ontrol of composition implies po'er to appoint or remove all or a ma;ority of directors.

A hen an enterprise is controlled by t'o enterprises definitions of control, both theenterprises are

required to consolidate the financial statements of the first mentionedenterprise !+I-02%.

A 5onsolidated financial statements to be presented in addition to separate financialstatements.

A ll subsidiaries, domestic and foreign to be consolidated except 'here control is

intendedto be temporary@ i.e., intention at the time of investing is to dispose the relevantinvestment in t

he Bnear future’ or the subsidiary operates under severe longterm restrictions impairing transfer of

funds to the parent. B>ear future’ generally means notmore than t'elve months from the date of

acquisition of relevant investments !+I-6%.5ontrol is to be regarded as temporary 'hen an enterprise

holds shares as Bstock-intrade’ and has acquired and held 'ith an intention to dispose them in the near

future!+I-03%.

Page12


13/35

A 5(+ normally includes consolidated balance sheet, consolidated $ 8 9, notes and otherstatements

necessary for preparing a true and fair vie'. 5ash flo' only in case parentpresents cash flo' statement.

CHAPTER II

APPLICABILITY

"ffective in respect of accounting periods commencing on or after pril C/, 0CC/

Page13


14/35

pplicable to enterprises that present consolidated financial statements

) Dandatory for listed entities

) Eptional for other entities

ccounting +tandard !+% 0/ !issued 0CC/%,5onsolidated (inancial +tatements and ccounting for

Investments in +ubsidiaries in +eparate (inancial +tatements, issued by the 5ouncil of the Institute of

5hartered ccountants of India, comes came into effect in respectof accounting periods commencing

on or after /-2-0CC/. This limited revision to the +tandard comes into effect in respect of accounting

periods commencing on or after the date on 'hich ccounting +tandard !+% 1C, (inancial

Instruments? #ecognition and Deasurement, comes into effect. In respect of separate financial

statements of an enterprise, this limited revision comes into effect from the same date. In respect of

consolidated financial statements, this ccounting +tandard is mandatory 'here the enterprise prepares

and presents consolidated financial statements. In other 'ords, the accounting standard does not

mandate an enterprise to present consolidated financial statements but, if the enterprise presents

consolidated financial statements, for a period commencing on or after the date on 'hich this +tandard

first came into effect, i.e., /-2-0CC/, for complying 'ith the requirements of any statute or other'ise, it

should prepare and present consolidated financial statements in accordance 'ith this +tandard,.

CHAPTER - III

ADVANTAGE

Page14


15/35

5onsolidated financial statements are presented primarily for the benefit of the shareholders, creditors,

and other resource providers of the parent.

+ignificantly, consolidated financial statements often represent the only means of obtaining a clear

picture of the total resources of the combined entity that are under the control of the parent company.

dvantage of holding company as under?

a. +ubsidiary company maintain their separate identities and as such they maintain their group.

b. $ublic at large is ignorant about such holding, hence monopoly or near monopoly can be

established.c.


16/35

This +tandard shall also be applied in accounting for investments in subsidiaries, ;ointly controlled

entities and associates 'hen an entity elects, or is required by la', to present separate financial

statements.

This "xposure Fraft is issued pursuant to the decision to converge 'ith I(#+s in respect ofaccounting

periods commencing on or after pril /, 0C//. ll existing ccounting +tandards and ne' ccounting

+tandards 'hich are referred to in this Fraft are also being revised or formulated, as the case may be, to

converge 'ith I(#+s from the aforesaid date. #eferences to the other standards may be vie'ed

accordingly.

ttention is specifically dra'n to paragraph 2.1 of the $reface, according to 'hich

accountingstandards are intended to apply only to items 'hich are material.

The follo'ing terms are used in this +tandard 'ith the meanings specified? 5onsolidated financial

statements are the financial statements of a group presented as those of a single economic entity.

5ontrol is the po'er to govern the financial and operating policies of an entity so as to obtain benefits

from its activities.

group is a parent and all its subsidiaries.

>on-controlling interest is the equity in a subsidiary not attributable, directly or indirectly, to a parent.

parent is an entity that has one or more subsidiaries.

+eparate financial statements are those presented by a parent, an investor in an

Page16


17/35

associate or a venture in a ;ointly controlled entity, in 'hich the investments are accounted for on the

basis of the direct equity interest rather than on the basis of the reported results and net assets of the

investees.

subsidiary is an entity, including an unincorporated entity such as a partnership, that is controlled by

another entity !kno'n as the parent%.

parent or its subsidiary may be an investor in an associate or a venture in a ;ointly

controlled entity. In such cases, consolidated financial statements prepared and presented in accordance

'ith this +tandard are also prepared so as to comply 'ith + 01 !#evised 0CGG% Investments in

ssociates and + 0 !#evised 0CGG% Interests in Hoint entures.

(or an entity described in paragraph 3, separate financial statements are those prepared and presented

in addition to the financial statements referred to in paragraph

+eparate financial statements need not be appended to, or accompany, those statements, unless

required by la'.

The financial statements of an entity that does not have a subsidiary, associate or venturer’s interest in

a ;ointly controlled entity are not separate financial statements.

parent that is exempted in accordance 'ith paragraph /C from presenting consolidated financial

statements may present separate financial statements as its only financial statements.

CHAPTER- V

PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

Page17


18/35

parent, other than a parent described in paragraph /C, shall present consolidated financial statements

in 'hich it consolidates its investments in subsidiaries in accordance 'ith this +tandard.

parent need not present consolidated financial statements if and only if?

!a% the parent is itself a 'holly-o'ned subsidiary, or is a partially o'ned subsidiary of another entity

and its other o'ners, including those not other'ise entitled to vote, have been informed about, and do

not ob;ect to, the parent not presenting consolidated financial statements@

!b% the parent’s debt or equity instruments are not traded in a public market !a domestic or foreign stock

exchange or an over-the counter market, including local and regional markets%@

!c% the parent did not file, nor is it in the process of filing, its financial statements 'ith a +ecurities

#egulator or other regulatory organi&ation for the purpose of issuing any class of instruments in a

public market@ and

!d% the ultimate or any intermediate parent of the parent produces consolidated financial statements

available for public use that comply 'ith ccounting +tandards.

CHAPTERVI

CONSOLIDATION PROCEDURE

Page18


19/35

In preparing consolidated financial statements, the financial statements of the parent and its

subsidiaries should be combined on a line by line basis by adding together like items of assets,

liabilities, incomeand expenses. In order that the consolidated financial statements present financial

information about the group as that of a single enterprise, the follo'ing steps should be taken?

!a% The cost to the parent of its investment in each subsidiary and the parent’s portion of equity of each

subsidiary, at the date on 'hich investment in each subsidiary is made, should be eliminated@

!b% ny excess of the cost to the parent of its investment in a subsidiary over the parent’s

portion of equity of the subsidiary, at the date on 'hich investment in the subsidiary is made, should be

described as good'ill to be recogni&ed as an asset in the consolidated financial statements@

!c% hen the cost to the parent of its investment in a subsidiary is less than the parent’s portion of

equity of the subsidiary, at the date on 'hich investment in the subsidiary is made, the difference

should be treated as a capital reserve in the consolidated financial statements@

!d% Dinority interests in the net income of consolidated subsidiaries for the reporting period should

be identified and ad;usted against the income of the group in order to arrive at the netincome

attributable to the o'ners of the parent@ and

!e% Dinority interests in the net assets of consolidated subsidiaries should be identified and presented in

the consolidated balance sheet separately from liabilities and the equity of the parent’s shareholders.

Dinority interests in the net assets consist of?

!i% The amount of equity attributable to minorities at the date on 'hich investment in a subsidiary is

made@ and

Page19


20/35

!ii% The minorities’ share of movements in equity since the date the parent-subsidiary relationship

came in existence.

here the carrying amount of the investment in the subsidiary isdifferent from its cost, the carrying

amount is considered for thepurpose of above computations.

E@PLANATION

Page20


21/35

!a% The tax expense !comprising current tax and deferred tax% to be sho'n in the consolidated financial

statements should be the aggregate of the amounts of tax expense appearing in the separate

financial statements of the parent and its subsidiaries.

!b% The parent’s share in the post-acquisition reserves of a subsidiary, forming part of the

corresponding reserves in the consolidated balance sheet, is not required to be disclosed separately in

the consolidated balance sheet keeping in vie' the ob;ective of consolidated financial statements to

present financial information of the group as a 'hole. In vie' of this, the consolidated reserves

disclosed in the consolidated balance sheet are inclusive of the parent’s share in the post-acquisition

reserves of a subsidiary.

The parent’s portion of equity in a subsidiary, at the date on 'hich investment is made, is determined

on the basis of information contained in the financial statements of the subsidiary as on the date

of investment.


22/35

made over a period of time and then an investment is made that results in control, the date of the latest

investment, as a practicable measure, may be considered as the date of investment.

Intra group balances and intra group transactions and resulting unreali&ed profits should be eliminated

in full. *nreali&ed losses resulting from intra group transactions should also be eliminated unlesscost

cannot be recovered.

Intra- group balances and intra group transactions, including sales, expenses and dividends, are

eliminated in full. *nreali&ed profits resulting from intragroup transactions that are included in the

carrying amount of assets, such as inventory and fixed assets, are eliminated in full.

*nreali&ed losses resulting from intragroup transactions that are deducted in arriving at the carrying

amount of assets are also eliminated unless cost cannot beThe financial statements used in the

consolidation should be dra'n up to the same reporting date. If it is not practicable to dra' up

the financial statements of one or more subsidiaries to such date and, accordingly, those financial

statements are dra'n up to different reporting dates, ad;ustments should be made for the effects of

significant transactionsor other events that occur bet'een those dates and the date of the parent’s

financial statements. In any case, the difference bet'een reporting dates should not be more than six

months.

The financial statements of the parent and its subsidiaries used in the preparation of the consolidated

financial statements are usually dra'n up to the same date. hen the reporting dates are different, the

Page22


23/35

subsidiary of ten prepares, for consolidation purposes, statements as at the same date as that of the

parent. hen it is impracticable to do this, financial statements dra'n up to different reporting dates

may be used provided the difference in reporting dates is not more than six months. The

consistency principle requires that the length of the reporting periods and any difference in the

reporting dates should be the same from period to period.

5onsolidated financial statements should be prepared using uniform accounting policies for like

transactions and other events in similar circumstances. If it is not practicable to use uniform

accounting policies in preparing the consolidated financial statements, that fact should be disclosed

together 'ith the proportions of the items in the consolidated financial statements to 'hich the different

accounting policies have been applied.

If a member of the group uses accounting policies other than those adopted in the consolidated

financial statements for like transactions and events in similar circumstances, appropriate ad;ustments

are made to its financial statements 'hen they are used in preparing the consolidated financial

statements.

The results of operations of a subsidiary are included in the consolidated financial statements as from

the date on 'hich parent-subsidiary relationship came in existence. The results of operations of a

subsidiary 'ith 'hich parent-subsidiary relationship ceases to exist are included in the

consolidatedstatement of profit and loss until the date of cessation of the relationship.

The difference bet'een the proceeds from the disposal of investment in a subsidiary and the carrying

amount of its assets less liabilities as of the date of disposal is recogni&ed in the consolidated statement

Page23


24/35

of profit and loss as the profit or loss on the disposal of the investment in the subsidiary. In orderto

ensure the comparability of the financial statements from one accounting period to the next,

supplementary information is often provided about the effect of the acquisition and disposal of

subsidiaries on the financial position at the reporting date and the results for the reporting period

and on then investment in an enterprise should be accounted for in accordance 'ith ccounting

+tandard !+% /1, ccounting for Investments, from thedate that the enterprise ceases to be a

subsidiary and does not become anassociate

The carrying amount of the investment at the date that it ceases to be a subsidiary is regarded as cost

thereafter.

Dinority interests should be presented in the consolidated balancesheet separately from liabilities and

the equity of the parent’s shareholders.

Dinority interests in the income of the group should also be separately presented.

The losses applicable to the minority in a consolidated subsidiary may exceed the minority interest in

the equity of the subsidiary. The excess, and any further losses applicable to the minority, are ad;usted

against the ma;ority interest except to the extent that the minority has a binding obligation to, an disable

to, make good the losses. If the subsidiary subsequently reports profits, all such profits are allocated to

the ma;ority interest until the minority’sshare of losses previously absorbed by the ma;ority has been

recovered.

If a subsidiary has outstanding cumulative preference shares 'hich areheld outside the group, the

parent computes its share of profits or lossesafter ad;usting for the subsidiary’s preference

dividends, 'hether or not dividends have been declared..

Page24


25/35

Page25


26/35

PROCEDURE TO MAKE CONSOLIDATED BALANCE SHEET

5onsolidation should be done by line by line aggregating the assets and liabilities.

LIABILITIES

/. +hare 5apital ? Enly holding company share capital of subsidiary company should

be ignored.

0. #eserves and +urplus? #eserves as per


27/35

CHAPTER - VII

CONSOLIDATED BALANCE SHEET

ltd. cquired 0CCC "quity +hare of #s./CC each in 7 ltd. En 1/.1.0C/0. The summari&edbalance

sheet of the t'o companies as on 1/.1.0C/1. 'ere as follo's ?

9iabilities ltd. 7 ltd. ssets ltd. 7 ltd

"quity +hare

capital?

+hare of #s./CC

each

6CCCCC 03CCCC (ixed ssets CCCCC 03CCCC

#eserves 1CCCCC 3CCCC 5urrent ssets 2CCCCC 0CCCCC

$rofits 8 9oss Jc /CCCCC /CCCCC 0CCC +hares in

7 ltd., at cost

1CCCCC -

5reditors 0CCCCC 3CCCC

100000 !0000 100000 !0000

7 ltd.


28/35

B&4&, S5,,* / A 4*+. A+ '* #%'+'& B L*+.

A &* 91.9.2019

R#3,, ' 000

$articulars >ote

>o.

(igures as at the end of

current reporting period

I. EQUITY AND LIABILITY

/.+hareholders (und

a. +hare 5apital b. #eserves and +urplus

/

0

6CC

202 /002

0. Dinority Interest 6C

1. >on- 5urrent 9iabilities >il

2. 5urrent 9iabilities

a. Trade $ayables 1 03C

T*&4 1!!

II. ASSETS

/.>on- current ssets

a. (ixed ssets

i. Tangible ssets

ii. Intangible ssets

2

3

:3C

2 :32

0. 5urrent ssets

a. Inventories 4 4CC

T*&4 1!!

Page28


29/35

N*, * B&4&, S5,,*

#s BCCC’

1. S5&, C&3'*&4

Issued 8 +ubscribed

6CCCC "quity +hares of #s. /CC each.

6CC

2. R,,6, S#34##eserves 1CC

$rofit 8 9oss J5 /02

9. T&+, P&&%4,

5reditors 03C

. T&8'%4, A,*

Ether (ixed ssets :3C

!. I*&8'%4, A,*

ood'ill 2

4. I6,*', 4CC

CHAPTER- VIII

Page29


30/35

PROCEDURE TO MAKE CONSOLIDATED STATEMENT OF

PROFIT LOSS

In like manner consolidated profit and loss account need to be prepared. The steps required in

preparing 5onsolidation $rofit and 9oss account are as follo's ?

+teps ?I. scertain the items of income Jexpenses bet'een


31/35

Interim dividend paid on /./.0C/0

En "quity +hares

En $reference +hares

+tock on 1C.4.0C//

/13CCCC

-

6:1CC

0CCCC

6/CCC

/6C3C2C

Issued and paid-up shares 5apital

"quity +hares of #s. /C each

:K $reference share of #s. /CC each

32CCCCC

-

14CCCCC

/6CCCCC

$rofit and loss ccount

7alance on 1C.4.0C// 26/3CC 34CCC

The follo'ing additional information is relevant?

/. $rofits of 7 9td. ccrued evenly throughout the year.0. +tock on hand as on 1C.4.0C/0 'ere ?

9td. #s. /330C

7 9td. #s. /4/26C1. $rovision for taxation based on profits for the year is to be made as follo's ?

9td. #s. 0CCCCC

7 9td #s. /:22CCC2. 9td. $urpose to pay final dividend on "quity +hares at 03K.

3. 7 9td. $urpose to pay half years dividend on preference +hares and final dividend on "quity

+hares at 1CK.4. 7 9td. sold to 9td. in Darch 0C/0 material 'orth #s. 3CCCC at cost plus 03K of 'hich 9td.

still had unsold stock of #s. 30C3CC as on 1C.4.0C/0.

Lour are required to?$repared 5onsolidated $rofit and 9oss ccount of 9td. and its subsidiary 7 9td. for the year

ended on 1C.4.0C/0. +ho' your calculation for?

a. Dinority Interest !in profit%

b. 5apital #eserves

c. $rovision for unreali&ed $rofits.

Page31


32/35

P/'* L, S*&*,$,* / *5, ,& ,+,+ 90 *5 J#," 2019

R#3,, ' 000

$articulars >ote >o. (igures for

the current

reporting

$eriod

I #evenue from Eperation / 1C.34C

II Ether Income 0 >il

III Total #evenue ! IMII% 1C.3C

I $urchase of +tock-in Trade 1 /4.:CC.04C

5hanges in Inventories of (inished oods

ork-in-$rogress and +tock-in-Trade?Ether "xpenses

Total "xpenses

2

3

!33C.04C%

3C2C.CCC

0/1:C.CCC

$rofit before Tax :14C.CCC

I $rovision (or Tax 2422.CCC

II $rofit !9oss% for the $eriod !GIMGI% 2/4.CCC

R,,6, &+ #34#

$rofit and 9oss Jc ? A L*+. 1.!00

B L*+. 34.CCC /C3.3CC

dd? >et $rofit for the year ? 9td. 012C.CCC7 9td. 014.CCC 2/4.CCC

31.3CC

9ess ? ppropriation

Interim Fividend "quity 0CC.CCC

Page32


33/35

$reference 6/.CCC

$roposed Fividend ?

"quity /40C.CCC

$reference 2C.3CC 5apital $rofit 4/1./03

Dinority Interest 02.3CC

$rovision for unrealised $rofit /C2./CC24.0037alance carried to balance +heet ::.03

N*, * S*&*,$,* / P/'* L R. I 000

CHAPTER

- I@

CONCLUSION

T'o companies are considered to be related companies 'hen one controls the other company.

Page33

/. #evenue (rom Eperation

9td. 7 9td

9ess? Inter 5ompany sales

/4,0CC.CCC/3,1CC.CCC

1/,3CC.CCC

3C.CCC

1C,3C.CC

0. Ether IncomeFividend #eceivable

9ess? Inter company Transaction

63C.3CC

63C.3CC

1 $urchases 9td.

7 9td

9ess? Inter 5ompany Transaction

6,:41.60C

6,464.22C

/,43C.04C 3C.CCC

/4,:CC.04C

2 5hanges in InventoriesEpening +tock ? 9td.

7 9td

5losing stock 9td. 7 9td

>et Increase

6:1.CC

/6C3.C2C

/3.30C/4/.26C

04:6.2C

102:.CCC

33C.04C

3 Ether "xpenses

Everheads "xpenses

9td.7 9td.

+elling "xpenses 9td.

7 9td

.

0CC.CCC:23.CCC

6/C.CCC

/0/3.CCC

1C/3.CCC

0C03.CCC


34/35

5onsolidated financial statements are generally considered to be more useful than the separate

financial statements of the individual companies 'hen the companies are related.

hether the subsidiary is acquired or created, each individual company maintains its o'n accounting

records, but consolidated financial statements are needed to present the companies together as a single

economic entity for general-purpose financial reporting.

5onsolidated financial statements are presented primarily for the benefit of the shareholders, creditors,

and other resource providers of the parent.

+ignificantly, consolidated financial statements often represent the only means of obtaining a clear

picture of the total resources of the combined entity that are under the control of the parent company.

hile consolidated financial statements are useful, their limitations also must be kept in mind.

+ome information is lost any time data sets are aggregated@ this is particularly true 'hen the

information involves an aggregation across companies that have substantially different operating

characteristics.

CHAPTER- @

BIBIOGRAPHY

>>>.'&'.$

>>>.$&.86.'

Page34

http://www.icai.com/http://www.mca.gov.in/http://www.mca.gov.in/http://www.icai.com/


35/35

>>>.&+6&,/'&'&4&#*'8.$

B?

A+6&, /'&'&4 &#*'8 %? / S,*5 3#%4'&*'

Page
http://www.advancefinancialaccounting.com/http://www.advancefinancialaccounting.com/

consolidation of financial statments final project (1) (1)

Documents