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Shahid asked 1 year ago

Xpvt Ltd is a subsidiary of a listed entity incorporated outside India. The management of the company believes that since X Pvt Ltd is a private company and satisfy all conditions under CARO 2016 , Reporting under CARO is not applicable.
Ans – not applicable
How?

1 Answers
RaviRavi Staff answered 1 year ago

X Pvt Limited is a Subsidiary

Holding Co is Incorporated Outside India, In country of incorporation it is listed, that means its a public company in country on incorporation

As per definitions given in companies act, foreign company can get status of holding or subsidiary in India, but it cannot get status of public or private in india, further MCA has clarified that even if foreign company is public in company of incorporation, it cannot change status of indian pvt subsidiary 
 
so from above discussion, it absolutely fine to have foreign holding company which is public co in country of incorporation, x pvt limited can still get exemption from caro if other conditions are satisfied 

RaviRavi Staff replied 1 year ago

Final Conclusion

Indian Pvt limited having indian public holding co cannot claim exemption
Indian Pvt limited having foreign public holding co can get exemption

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