The financial relationship between a group company and its subsidiaries is usually realized by holding and being held. Group companies are usually independent legal entities in law, and achieve their strategic goals by investing, controlling and managing their subsidiaries. A subsidiary is a legal entity under the control of a group company and is responsible for specific business operations.
In finance, the group company reviews and controls the financial decisions and budgets of its subsidiaries to ensure that they meet the strategic objectives and interests of the group company. At the same time, the group company will also review and supervise the financial statements of its subsidiaries to ensure their accuracy and compliance.