Rule 6 Manner of consolidation of accounts
- Text as on
- Gazette to 31 May 2023; rule 12 current to 14 August 2026
6. Manner of consolidation of accounts.- The consolidation of financial statements of the company shall be made in accordance with the provisions of ScheduleDefined in rule 2(e): Schedule means the Schedule to the Act III of the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013) and the applicable accounting standards:
Provided that in case of a company covered under sub-section (3) of section 129 which is not required to prepare consolidated financial statements under the Accounting Standards, it shall be sufficient if the company complies with provisions on consolidated financial statements provided in ScheduleDefined in rule 2(e): Schedule means the Schedule to the Act III of the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013):
Provided further that nothing in this rule shall apply in respect of preparation of consolidated financial statements by a company if it meets the following conditions:-
(i) it is a wholly-owned subsidiary, or is a partially-owned subsidiary of another company and all its other members, including those not otherwise entitled to vote, having been intimated in writing and for which the proof of delivery of such intimation is available with the company, do not object to the company not presenting consolidated financial statements;
(ii) it is a company whose securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India; and
(iii) its ultimate or any intermediate holding company files consolidated financial statements with the Registrar which are in compliance with the applicable Accounting Standards:
Provided also that nothing contained in this rule shall, subject to any other law or regulation, apply for the financial year commencing from the 1st day of April, 2014 and ending on the 31st March, 2015, in case of a company which does not have a subsidiary or subsidiaries but has one or more associate companies or joint ventures or both, for the consolidation of financial statement in respect of associate companies or joint ventures or both, as the case may be:
Provided also that nothing in this rule shall apply in respect of consolidation of financial statement by a company having subsidiary or subsidiaries incorporated outside India only for the financial year commencing on or after 1st April, 2014.
1. Subs. by G.S.R. 742(E), dated 27th July, 2016. The proviso as inserted by G.S.R. 723(E), dated 14th October, 2014 had exempted an intermediate wholly-owned subsidiary, other than one whose immediate parent is a company incorporated outside India.
2. Ins. by G.S.R. 723(E), dated 14th October, 2014 (Companies (Accounts) Amendment Rules, 2014).
3. Ins. by G.S.R. 37(E), dated 16th January, 2015 (Companies (Accounts) Amendment Rules, 2015).