S. Jaykishan

Chartered Accountants

Consolidated Financial Statements

Consolidated Financial Statements

– By CA Vivek Newatia
– By CA Niketa Agarwal

Erstwhile only clause 32 of the listing agreement mandated listed companies to publish Consolidated Financial Statements. Neither the Companies Act, 1956 mandated the preparation of consolidated financial statements nor do the Accounting Standards require companies to prepare Consolidated Financial Statements. With insertion of Section 129(3) in the Companies Act 2013 (“Act”), all companies including unlisted and private companies with one or more subsidiaries will in addition to separate financial statements now have to prepare Consolidated Financial Statements (“CFS”).

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