Section 290, The Companies Act, 2009

(1) If at the end of a financial year a company hassubsidiaries, the directors shall, as well as preparing individual accounts for that year, also prepare group financial statements being accounts or statements, which deal with the state of affairs and profit or loss of the company and the subsidiaries. (2) Subsection (1) shall not apply if the company is a wholly owned subsidiary of another body corporate incorporated in (3) A group financial statement may not deal with a subsidiary, if the directors of the company are of the opinion that- (a) it is impracticable, or would be of no real value to the members, in view of the insignificant amounts involved; (b) it would involve expense or delay out of proportion to its value to members of the (c) the result would be misleading, or harmful to the business of the company or any of its subsidiaries; or (d) the business of the holding company and that of the subsidiary are so different that they cannot reasonably be treated as a single undertaking. (4) The group financial statements of a company shall consist of a consolidation of– (a) the balance sheet dealing with the state of affairs of the company and all the subsidiaries (b) the profit and loss account of the company and its subsidiaries. (5) If the directors are of the opinion that it is better for the purpose of presenting the same or equivalent information about the state of affairs and profit or loss of the company and its subsidiaries, and that to so present it that it may be readily appreciated by the members of the company, the group financial statements may be prepared in a form not consistent with subsection (1) and in particular the group financial statement may consist of– (a) more than one set of consolidated financial statements dealing respectively with the company and one group of subsidiaries and with other groups of subsidiaries; (b) separate financial statements dealing with each of the subsidiaries; or (c) statements expanding the information about the subsidiaries in individual balance sheet and profit and loss account of the holding Group statements of holding 218 219