(a) Group of companies is comprised of a holding together with its
subsidiaries and sub-subsidiaries;
subsidiaries and sub-subsidiaries;
(b) Holding/parent company is one that exercise control over another
company either by owing more than half say 51% or more of the latter company’s equity
shares or controlling the composition of its board of directors;
company either by owing more than half say 51% or more of the latter company’s equity
shares or controlling the composition of its board of directors;
(c) Subsidiary company in controlled by its holding company but may
itself be the holding company of a sub-subsidiary;
itself be the holding company of a sub-subsidiary;
Note:
(i)
Control of subsidiary may be complete control- a
wholly owned subsidiary – or there may be outside shareholders who own part of
the equity share capital a partly owned subsidiary.
Control of subsidiary may be complete control- a
wholly owned subsidiary – or there may be outside shareholders who own part of
the equity share capital a partly owned subsidiary.
(ii) The controlling shares in a
subsidiary may have been acquired in one block purchase or by a series of
acquisition of shares by the holding company and some of its subsidiaries
jointly.
subsidiary may have been acquired in one block purchase or by a series of
acquisition of shares by the holding company and some of its subsidiaries
jointly.
(d) Minority Interest
represents the share capital by the shareholders outside the group (who must of
necessity be in minority) together with attributable undistributed
reserves.
represents the share capital by the shareholders outside the group (who must of
necessity be in minority) together with attributable undistributed
reserves.