What is Holding Companies?what are its advantages and limitations?
        According to Companies Act, 1956 "A holding company is a company which directly or indirectly controls the composition of the Board of directors of some other companies." Examples are reliance industries, SAIL, NTPC, Tata sons Hindustan Lever Ltd etc
    Advantages of Holding company
             The following are the advantages of holding company form of organisation

1. Decentralization of management :- Even though the holding company exercises overall control over its subsidiaries, each subsidiary is free to manage its internal affairs. Decentralization in management helps each subsidiary to grow according to its potential. 
2. Integrated planning and direction : The holding company facilities integration in management by centralized purchases, production, sales, research and development. 
3. Professional management : Management of holding company and its subsidiaries is in the hands of professionally qualified staff. 
4. Centralized planning, promotion and control at industry :Formation of a holding company industry can enable management to formulate policies for planning, promotion and control of the industry as a whole. 
5. Consolidated financial position :The preparation of Consolidated financial statements helps the holding company is presenting its strength. The total liquidity of the holding company and its subsidiaries can be measured and hence the companies can communicate their strength as a whole. 

Disadvantages of Holding company :-
      The following are the disadvantages of the holding company form of organisation.

1. Conceal important information : Aggregating the results of holding company and its subsidiary may conceal important information from shareholders when the companies differ in respect of profitability, business risk and growth potential. 
2. Shareholders may be mislead : Consolidation may mislead the shareholders if the activities of the subsidiary are very dissimilar from those of other companies within the group.