SCHEDULE III OF THE COMPANIES ACT, 2013 :

The Schedule III of the Companies Act, 2013, provides certain general instructions for the preparation of consolidated financial statements.

1. Accordingly, where a company is required to prepare Consolidated Financial Statements, i.e., consolidated balance sheet and consolidated statement of profit and loss, the company shall mutatis mutandis follow the requirements of Schedule III of the Companies Act, 2013, as applicable to a company in the preparation of balance sheet and statement of profit and loss. In addition, the consolidated financial statements shall disclose the information as per the requirements specified in the applicable Accounting Standards including the following:

(i) Profit or loss attributable to “minority interest” and to owners of the parent in the statement of profit and loss shall be presented as allocation for the period.

(ii) “Minority interests” in the balance sheet within equity shall be presented separately from the equity of the owners of the parent.
2. In Consolidated Financial Statements, the following shall be disclosed by way of additional information:

 

Name of the entity in the	Net Assets, i.e., total Share in profitor loss assets minus total liabilities		Share in profitor loss
	As % of consolidated net assets	Amount	As % of consolidated profit or loss	Amount
Parent Subsidiaries Indian
1
2
3
Foreign
1
2
3
Minority Interests in all subsidiaries Associates
(Investment as per the equity method)
Indian
1
2
3
Foreign
1
2
3
Joint Ventures (as per proportionate consolidation/
investment as per the equity method)
Indian
1
2
3
Foreign
1
2
3
TOTAL

 

3. All subsidiaries, associates and joint ventures (whether Indian or foreign) will be covered under consolidated financial statements.

4. An entity shall also disclose the list of subsidiaries or associates or joint ventures which have not been consolidated in the consolidated financial statements along with the reasons of not consolidating.