COMPANIES ACT, 1929

629
and losses of those companies, have, so far as they concern the
aolding company, been dealt with in, or for the purposes of, the
accounts of the holding company, and in particular how, and to
what extent—
provision has been made for the losses of a subsidiary
company either in the accounts of that company or of the
holding company, or of both; and

losses of a subsidiary company have been taken into account
by the directors of the holding company in arriving at
the profits and losses of the holding company as disclosed
ln its accounts:

Provided that it shall not be necessary to specify in any such
statement the actual amount of the profits or losses of any subsidiary
company, or the actual amount of any part of any such profits or
losses which has been dealt with in any particular manner.

(2) If in the case of a subsidiary company the auditors’ report
on the balance sheet of the company does not state without qualifica-
tion that the auditors have obtained all the information and explana-
tions they have required and that the balance sheet is properly
drawn up so as to exhibit a true and correct view of the state of the
company's affairs according to the best of their information and the
explanations given to them and as shown by the books of the com-
pany, the statement which is to be annexed as aforesaid to the
balance sheet of the holding company shall contain particulars of
the manner in which the report is qualified.

(3) For the purposes of this section, the profits or losses of a
subsidiary company mean the profits or losses shown in any accounts
of the subsidiary company made up to a date within the period to
which the accounts of the holding company relate, or, if there are
no such accounts of the subsidiary company available at the time
when the accounts of the holding company are made up, the profits
or losses shown in the last previous accounts of the subsidiary
company which became available within that period.

(4) If for any reason the directors of the holding company are
unable to obtain such information as is necessary for the preparation
of the statement aforesaid, the directors who sign the balance
sheet shall so report in writing and their report shall be annexed
to the balance sheet in lieu of the statement.

127.—(1) Where the assets of a company consist in whole or in Meaning of
part of shares in another company, whether held directly or through Any
a nominee and whether that other company is a company within
the meaning of this Act or not, and—

the amount of the shares so held is at the time when the
accounts of the holding company are made up more than
fifty per cent. of the issued share capital of that other
company or such as to entitle the company to more than
fifty per cent. of the voting power in that other company: