Mca-form aoc-4 and subsidiary company as defined under clause (87) of section 2

Based on the information provided, it appears that your company has a wholly-owned subsidiary and two step-down subsidiaries in Mauritius.

Since these subsidiaries are not registered in India, they do not have a CIN (Corporate Identification Number). In this case, you would need to tick "Yes" in the AOC-4 form, indicating that you have subsidiary companies. 

However, since the subsidiaries are not registered in India, you will not be able to provide the CIN. 

Regarding the consolidation of accounts, it seems that your company does not consolidate the accounts of the step-down subsidiaries. 

The auditor has simply mentioned this fact in the audit report. This may be considered a qualification or adverse remark in the audit report, as it indicates a departure from the generally accepted accounting principles (GAAP) and the Companies Act, 2013, which require consolidation of accounts of subsidiaries. 

However, the impact of this qualification or adverse remark will depend on the specific circumstances and the auditor's opinion. 

Additionally, you may want to consider the following: - 

Review the accounting standards and regulatory requirements applicable to your company and its subsidiaries. - 

Consult with the auditor to understand the reasoning behind the qualification or adverse remark. 

- Evaluate the potential impact on your company's financial statements and reputation. - Consider seeking legal advice to ensure compliance with the Companies Act, 2013, and other relevant regulations.

Many thanks, Sir.

All step down subsidiary cos are consistently incurring losses. As these are financed by our wholly owned subsidiary. This impacts parent Co as well. Both foreign and India based auditors are simply mentioning non consolidation 

Co Secretary faces a dilemma 

What will be her role, when everybody is not taking call. But CS is kmp and compliance officer.

 In this scenario, the CS should:

1. Review the company's financials and assess the impact of the losses on the parent company.

2. Evaluate the reasons for the losses and consider seeking professional advice (e.g., turnaround consultants).

 3. Ensure proper disclosure of the losses and non-consolidation in the financial statements and AOC-4 form.

4. Communicate with the Board of Directors and senior management to address the issue and explore strategies to mitigate the losses.

5. Consider seeking legal advice to ensure compliance with the Companies Act, 2013, and other relevant regulations.

6. Document all efforts and decisions made to address the issue, demonstrating the CS's due diligence and compliance efforts.

 As a KMP and Compliance Officer, the CS plays a critical role in ensuring governance and compliance. By taking proactive steps, the CS can help mitigate potential risks and ensure the company's financial stability.