Saturday, August 15, 2015

Ministry allows filing of ‘Unaudited’ Accounts of Foreign Subsidiaries

The Ministry of Corporate Affairs (MCA) has relaxed the norms requiring Indian companies with overseas subsidiaries to file ‘audited’ financial statements of such foreign subsidiaries with the Registrar of Companies (RoC) in India.

After consulting with the Institute of Chartered Accountants of India (ICAI), the Ministry has now clarified that even ‘un audited’ financial statements of foreign subsidiaries can be filed with the RoC and will be treated as due compliance of Indian company law.

This dispensation will be allowed in case of a foreign subsidiary which is not required to get its financial statements audited as per legal requirements prevalent in the country of its incorporation, and which does not get its financial statements audited.

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