NEW DELHI: The government has exempted all companies with a foreign subsidiary from preparing consolidated financial statements ( CFS) for the current fiscal, a move that experts welcomed saying this will give these companies much-needed time for compliance.
"The requirement for consolidated financial statement for companies having foreign affiliates seems to have been deferred by one year.
This will come as significant relief for such companies," said Yogesh Sharma, partner-assurance at Grant Thornton India LLP.
Sharma, however, said more clarity is needed on the applicability of ministry's notification.
"While the amendments do not specify this, it appears that the use of the words 'subsidiary' or 'subsidiaries' incorporated outside India in the amendment also refers to and includes foreign associates and joint ventures.
We hope that this will be followed by a suitable clarification from the ministry," he said.