## Section 129(3) — Consolidated Financial Statements (CFS)
### The Mandate
Where a company has one or more subsidiaries (or associates / joint ventures), it shall, in addition to its own FS, prepare a Consolidated Financial Statement of the company and of all the subsidiaries, in the same form and manner as that of its own.
The CFS shall also be laid before the AGM along with the standalone FS.
### Statement of Salient Features [Form AOC-1]
The company shall attach along with its FS a separate statement containing the salient features of the financial statements of:
- Every Subsidiary
- Every Associate
- Every Joint Venture (JV)
This statement is in Form AOC-1.
### Expanded Meaning of "Subsidiary"
For the purpose of Sec. 129(3), the expression "subsidiary" includes associate company and joint venture.
## Rule 6 — Manner of Consolidation
- CFS shall be made in accordance with the applicable Accounting Standards (AS-21 / Ind AS-110) and Schedule III.
- Where a company is not required under the Accounting Standards to prepare CFS (e.g., wholly-owned intermediate subsidiary in certain cases), it shall be sufficient if the company complies with Schedule III for consolidation.
### Exemption from preparing CFS (Rule 6 — proviso)
A company is NOT required to prepare CFS if ALL three conditions are satisfied:
1. It is a wholly-owned subsidiary, OR a partially-owned subsidiary of another company, and all its other members (including those not otherwise entitled to vote) have been intimated in writing and have not objected to the company not presenting CFS;
2. It is a company whose securities are not listed (or are not in the process of listing) on any stock exchange — whether in India or outside India; and
3. Its ultimate or any intermediate holding company files CFS with the Registrar which are in compliance with the applicable Accounting Standards.
> Memory aid: "WUL" — Wholly/partially owned + no objection, Unlisted, ultimate/intermediate holding Lodges CFS.