Explain Minority interest and its calculating procedure.

Minority interest is that part of the net results of operations and of net assets of a subsidiary attributable to interests which are not owned, directly or indirectly through subsidiaries by the holding (parent) company. In short, minority interest represents the claims of the outside shareholders of a subsidiary. Minority interest in the net income of consolidated subsidiaries for the reporting period are identified and adjusted against the income of the group in order to arrive at the net income attributable to the shareholders of the holding company. Objectives The objective of the policy is to protect the rights of the minority shareholders and keep them updated about their rights from time to time. To check that the Shareholder Relationship Committee is redressing the grievances of the minority shareholders. As per para 13(e) of AS 21, minority interests in the net assets of consolidated subsidiaries should be identified and presented in the consolidated balance sheet separately from liabilities and the equity of the parent's shareholders. Minority Interest in the net assets consist of: (i) The amount of equity attributable to minority at the rate on which investments in a subsidiary is made: and (ii) The minorities share of movements in equity since the date the parent subsidiary relationship came into existence. Minority interest may be computed as follows: The remaining shareholders in the subsidiary company are called minority shareholders and their share in the assets of subsidiary company is called minority interest. This is calculated as under: Share in equity share capital of subsidiary company Add: Share in total profit of subsidiary company Less: Share in total loss of subsidiary company Add: Share in reserve of subsidiary company Add: Share in revaluation profit on assets of subsidiary company. Less: Share in revaluation loss on assets of subsidiary company. Less: Share in fictitious assets written off Minority interest