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: