Question

In addition to financial statements under Sub-section (2), what does a company with subsidiaries need to prepare according to Sub-section (3)?

a.

A separate statement for each subsidiary.

b.

A consolidated financial statement of the company and its subsidiaries.

c.

Financial statements for each subsidiary in a different form.

d.

Financial statements only for the main company.

Answer: (b).A consolidated financial statement of the company and its subsidiaries. Explanation:Sub-section (3) requires a company with subsidiaries to prepare a consolidated financial statement of the company and all subsidiaries, laid before the annual general meeting.

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Q. In addition to financial statements under Sub-section (2), what does a company with subsidiaries need to prepare according to Sub-section (3)?

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