AUDITORS PAGE 4,79 56, 90 6 77,90 90 59 56 Directors' remuneration, duties under Section 128 as to Undistributed profits of subsidiaries, where carried to excess BILLS OF EXCHANGE-INTER-COMPANY Elimination in preparing consolidated balance sheet Consolidated balance sheet, in profit and loss account, in 6, 7, 72 81 117 IIO, III, 112, 118 119 60 64 Depreciation of fixed assets of subsidiaries, additional Pre-acquisition profits are 55, 56, 57, 63, 83, 93, 111, 119, 120, 121 COMBINED SUMMARY OF Assets and LIABILITIES OF SUBSIDIARY Pre-acquisition profits and losses are capital for 55, 56, 57, 63, III, Purpose of preparing Shares and debentures of holding company held by sub- Surpluses and deficiencies on operations since acquisition Provisions of, specially affecting holding companies COMPANY LAW AMENDMENT COMMITTEE 119, 120, 121 96 98 99 97 5, 6, 7, 66, 68 I, 2, 3 26, 28 CONSOLIDATED BALANCE SHEET Adjusted values for inclusion in, due to application of uni- Advantages and disadvantages American attitude towards Bills of Exchange, inter-company British attitude towards PAGE 93, 107, 108 61, 80, 104, 105, 121 100 117 102 Capital reserves in IIO, III, 112, 118, 119 Classification of assets in, common basis needed 59, 60, 97, 106, Common date for balance sheets amalgamated desirable Contingent liabilities 107, 118, 121 106 28 109 118 108, IIO, III Discount in price of subsidiary due to revaluation of sub- Dividends declared by subsidiaries after balance sheet date 117 Fixed assets, uniform classification and valuation needed Inter-company balances and transactions, set-off Preliminary considerations in preparing Premium in price of subsidiary due to revaluation of sub- 105 108, IIO, III Setting off inter-company indebtedness and shareholdings 116, 117 COST AS BASIS OF VALUATION FOR SHARES AND ADVANCES 53 to 61, 80 COUNSELS' OPINION ON COMPANIES ACT, 1929 88 6, 7, 66, 68 Sections specially affecting holding companies 5, 6, 7, 66, 68 Of subsidiaries sometimes protected by holding company 49, 115 PAGE CURRENT ASSETS. See "Fixed and Floating Assets." DATES OF BALANCE SHEETS Adjustments in accounts where not drawn at common date 63, 106 company merger DEBENTUREs and DebenTURE STOCKS Holding company's, held by subsidiaries Indebtedness of subsidiaries secured by, distinguished from other indebtedness in certain cases 63, 10 5, 7, 33, 52, 98 49 Loans include debentures in sense of Section 125 of Act 5 113 5, 7, 52, 98, 113 Accounts for purposes of statement regarding results of Aggregate profits and losses, in Section 126 of Act Holding company Profits and losses of subsidiaries 6 68 I, 4, 5 2, 6, 26, 66, 68, 76 Subsidiary company Sub-subsidiary company Undistributed profits DEPRECIATION 3, 5, 7, 32, 34 32 50 Discretion as to form of accounts and treatment of results of Holding company itself may be a director Of holding company and subsidiaries not necessarily Importance of personality and ability in Sub-subsidiary company remuneration, how far to be shown Type of, needed in large mergers DISCOUNT Shares in subsidiary acquired at a 31, 63, 64, 108, 110, 111, 112 DIVIDENDS PAGE 50, 94, 98 Adjustments in preparing holding company's accounts Declared by subsidiaries- 60, 118 Generally viewed by holding company as current assets 50 Subsidiaries' dividends paid by holding company under 117 16, 20, 34, 61 102 EUROPEAN ATTITUDE TOWARDS CONSOLIDATED ACCOUNTS EXAMPLES IN APPENDIX I-REFERENCES IN TEXT General comments Non-current nature of Subsidiary A.'s indebtedness How shown in draft legal balance sheet. Summary of net assets of subsidiaries Summary of preliminary draft balance sheet of holding company 31 to 34 43 48 to 51 87 85 32, 42 FINANCING OF SUBSIDIARY COMPANIES Advances and/or guarantees of holding company Basis of valuation to be shown in legal balance sheet in case of fixed assets Counsels' opinion regarding Designation as fixed or floating not obligatory 5, 7, 40, 41, 42 5,7 5,7 60, 118, 120 Depreciation of fixed assets, provisions of subsidiaries Distinction necessary in legal balance sheet between 5, 7, 40 to 43,49 84, 85 Revaluations at time of purchase, treatment of surpluses or Auditors' reports on balance sheets of, special points in GUARANTEES BY HOLDING COMPANY Outside shareholders' interests in subsidiaries Shares of, held by or exchanged with subsidiary 33, 52 to 55, 98,116 INCOME TAX 2, 3, 4, 35, 36 Advantages of holding company over direct merger Losses carried forward, benefits retained under Losses of subsidiary eliminated by credit from holding Loss relief claims by trading holding company under Section 84 131 Management expense relief claims by non-trading holding 129 123 132 124 122, 123 Methods of obtaining set-off of losses in one company against Profits on investment dealings, liability in respect of Set-off of losses of one company against profits of another INTER-COMPANY TRANSACTIONS Adjustments regarding profit on . 127, 128, 129 51, 62, 63, 88, 89, 117, 118 Adjustment and separate statement of balances needed if individual balance sheets of subsidiaries published with accounts of holding company Bills of exchange Final dividends of subsidiaries Interest on Pre-acquisition profits on Set-off of balances on consolidation |