THE COMPANIES ORDINANCE, 1972

PART III

Consolidated accounts of holding company and subsidiaries

22.  Subject to the following paragraphs of this Part of this Schedule, the consolidated balance sheet and profit and loss account shall combine the information contained in the separate balance sheets and profit and loss accounts of the holding company and of the subsidiaries dealt with by the consolidated accounts, but with such adjustmens (if any) as are necessary :—

(a)   to eliminate the effect of current transactions between any of the companies whose accounts are consolidated ;

(b)   to eliminate shares in the company or its subsidiaries which are held by or by nominees for any of its subsidiaries, except shares which are held by a subsidiary as an agent or nominee for persons other than another subsidiary and shares which are held by or by nominees for a subsidiary by way of security for money lent, guaranteed or secured by it; and

(c)   to show the extent of the interests of persons other than shareholders and debenture holders of the holding company in the assets, net assets, capital reserves, revenue reserves and profits of the subsidiaries.

23.  Subject as aforesaid, the consolidated accounts shall, in giving the said information comply, so far as practicable, with the requirements of this Ordinance as if they were the accounts of an actual company.

24.  Sections 146 to 151 inclusive of this Ordinance shall not, by virtue of the two last foregoing paragraphs, apply for the purpose of the consolidated accounts.

25.  Paragraph 8 of this Schedule shall not apply for the purpose of any consolidated accounts laid before a company with the first balance sheet so laid after the coming into operation of this Ordinance.

26.  In relation to any subsidiaries of the holding company not dealt with by the consolidated accounts-

(a) sub-paragraphs (2) and (3) of paragraph 20 of this Schedule shall apply for the purpose of those accounts as if those accounts were the accounts of an actual company of which they were subsidiaries ; and

(b) there shall be annexed the like statement as is required by sub-paragraph (4) of that paragraph where there are no group accounts, but as if references therein to the holding company's accounts were references to the consolidated accounts.

27.  In relation to any subsidiaries (whether or not dealt with by the consolidated accounts), whose financial years did not end with that of the company, there shall be annexed the like statement as is required by sub-paragraph (6) of paragraph 20 of this Schedule where there are no group accounts.