Start with the entity population, not the last filed form
Section 129(3) of the Companies Act, 2013 requires a separate salient-features statement in the prescribed form. The current subsection separately refers to subsidiaries and associate companies. Section 2(6) includes a joint venture company within the definition of an associate company; the form reports subsidiaries in Part A and associates and joint ventures in Part B. Rule 5 of the Companies (Accounts) Rules, 2014 prescribes e-Form AOC-1 after the 2025 amendment effective 14 July 2025. Use the relevant entity classification and consolidation workpapers; the form is a separate statement and does not replace consolidated financial statements where required.
Read the applicable text: India Code: Companies Act, 2013, sections 2(6), 2(87) and 129(3) Gazette: Companies (Amendment) Act, 2017, section 33 Gazette: G.S.R. 357(E), Rule 5 and substituted e-Form AOC-1.
Map subsidiaries into Part A
Use each subsidiary’s name and registration identifier, acquisition date, section 2(87) basis, reporting period if different, and the reporting currency and relevant year-end exchange-rate particulars for foreign subsidiaries. Reconcile the prescribed financial highlights to the source financial statements, with amounts in rupees in Part A. Preserve an exchange-rate and translation working; the presence of a rate field does not establish that every consolidation line is translated at that rate.
Map associates and joint ventures into Part B
The notified form asks for the latest audited balance sheet date, association or acquisition date, share count, investment amount, holding percentage and how significant influence arises, as applicable. It also asks for attributable net worth and profit or loss considered and not considered in consolidation. Explain any non-consolidation using the applicable accounting and legal basis. Do not assume the carrying amount of investment equals attributable net worth or the simple share of profit equals the amount recognised in consolidation.
Keep status changes visible and verify the linked filing
Part A separately collects subsidiaries yet to commence operations and those liquidated or ceasing to be subsidiaries during the year. Part B contains corresponding rows for associates and joint ventures. Reconcile those fields to the entity movement schedule without silently deleting ceased entities. Check the signatory’s authority, the form’s certification by a chartered accountant, cost accountant or company secretary in whole-time practice, and the actual filing trail. Preserve the submitted form with the annual filing pack and tie the data to the signed financial statements.
Six worked illustrations
All facts and amounts are fictional. Calculations illustrate the stated assumptions, not a predetermined legal outcome.
Illustrative example 1: Reconcile the closing subsidiary population
A company starts with four subsidiaries, acquires two and loses control of one. Closing population is five. The ceased subsidiary must also be checked for the separate year-movement disclosure.
Illustrative example 2: A non-operating entity is still in the group
Of six closing subsidiaries, two have not commenced operations. On these facts, the subsidiary population remains six and two feed the separate non-commencement disclosure.
Illustrative example 3: Part A reporting units
A foreign subsidiary’s closing asset line is FC 80,000. If the approved applicable conversion for this line is ₹90 per FC, the amount is ₹7,200,000. Do not enter 80,000 as rupees.
Illustrative example 4: Profit bridge for a subsidiary
A subsidiary’s verified profit before tax is ₹2,400,000 and its tax provision is ₹600,000, with no other reconciling item. Profit after tax is ₹1,800,000. Match all three values to the approved source.
Illustrative example 5: Shareholding and attributable net worth
An investor holds 75,000 of 250,000 equal-ranking shares in an associate. Its interest is 30%. Assume an audited net worth of ₹10,000,000, fully attributable pro rata on these facts. Its share is ₹3,000,000 even if the investment carrying amount is different.
Illustrative example 6: Reconcile the profit columns
An approved Part B working on the relevant reporting basis shows a ₹900,000 profit population, of which ₹650,000 is considered and ₹250,000 is not considered in consolidation. The split ties to ₹900,000; retain the explanation and source for each component.
Ten-step verification table
| Step | Action | Evidence |
|---|---|---|
| 1 | Reconcile the complete investment and control list | Entity chart and ownership records. |
| 2 | Classify each relationship | Voting rights, agreements and consolidation analysis. |
| 3 | Match acquisition and cessation dates | Closing documents and effective-date working. |
| 4 | Check non-commencement and liquidation | Entity status evidence and movement schedule. |
| 5 | Prepare Part A source rows | Subsidiary statements and reporting period data. |
| 6 | Review foreign-currency figures | Approved exchange-rate and conversion working. |
| 7 | Prepare Part B source rows | Audited balance sheets, holding and consolidation working. |
| 8 | Tie disclosures to the annual accounts | Signed accounts and controlled reconciliation. |
| 9 | Confirm form authority and certification | Board resolution, digital signature and certification. |
| 10 | Retain the completed filing evidence | Filed form, parent filing reference and status. |
Sixteen practitioner FAQs
1. Which provision anchors the statement?
The first proviso to section 129(3), read with rule 5.
2. Does e-Form AOC-1 substitute for consolidation?
No. Assess the consolidation requirement separately.
3. Where are subsidiaries reported?
Part A of the notified form.
4. Where are associates and joint ventures reported?
Part B.
5. Should a newly acquired entity’s dates match the last return?
Use the current-year acquisition evidence and form requirements.
6. Does non-commencement remove a subsidiary?
No. Verify the status and complete the separate field.
7. How are ceased subsidiaries addressed?
Reconcile the movement and the specific ceased-entity disclosure.
8. What if the subsidiary uses a different reporting period?
Complete the applicable period particulars and support the difference.
9. What foreign subsidiary data needs separate review?
Reporting currency, relevant exchange rate and rupee amounts.
10. Does the rate field determine the consolidation translation method?
No. Apply the relevant accounting requirements separately.
11. Is shareholding always the same as voting power?
No. Test instruments, rights and the relationship basis.
12. Does investment carrying amount equal attributable net worth?
Not necessarily. Support both measures independently.
13. What if an associate was not consolidated?
Record the reason and retain the legal and accounting analysis.
14. Why reconcile the two profit or loss fields?
They report amounts considered and not considered; verify the basis and split.
15. Does the form contain a practising professional certificate?
Yes. Follow the notified form and applicable filing instructions.
16. What is the strongest final control?
Tie every entity and amount to approved records and the filed annual pack.
Official sources
India Code: Companies Act, 2013, sections 2(6), 2(87) and 129(3) Gazette: Companies (Amendment) Act, 2017, section 33 Gazette: G.S.R. 357(E), Rule 5 and substituted e-Form AOC-1