Ministry of Corporate Affairs (MCA) vide General Circular No. 11/2015 dated 21st July, 2015 has issued a clarification with respect to circulation and filing of financial statements under sec 136 & 137 of the Companies Act, 2013 and the text of the said clarifications is set forth as below:

Circulation of Financial Statement at a shorter notice

Filing of financials of the company along with its foreign subsidiary or subsidiary (ies) financials

In this regard after examining the matter MCA has clarified that in case of a foreign subsidiary, which is not required to get its accounts audited as per legal requirements prevalent in the country of its incorporation and which does not get such accounts audited, the holding/parent Indian may place/file such unaudited accounts to comply with requirements of Section 136(1) and 137(1) as applicable. These, however, would need to be translated in English, if the original accounts are not in English. Further, the format of accounts of foreign subsidiaries should be, as far as possible, in accordance with requirements under Companies Act, 2013. In case this is not possible, a statement indicating the reasons for deviation may be placed/filed along with such accounts.

1. That a company holding a general meeting after giving a shorter notice as provided under section 101 of the Act may also circulate financial statements (to be laid/considered in the same general meeting) at such shorter notice.
2. Provisions of fourth (4th) proviso to section 136(1) (a) which require every company having a subsidiary or subsidiaries to place on its website, if any, separate audited accounts in respect of each of its subsidiary. Further, fourth (4th) proviso to section 137(l) requires that a company shall attach along with its financial statements to be filed with the Registrar, the accounts of its subsidiary (ies) which have been incorporated outside India and which have not established their place of business in India.