CARO 2016 - Applicability

[Bijay Shrestha]

Dear friends,

CARO 2016 is applicable to Public Company and a private company which is a subsidiary or holding company of a Public Company.

Now my query is: A Private Company (Say X) is a subsidiary of another Private Company (Y) and Y is again subdiary of a Public Company (Z).

Now CARO 2016 is applicable to X or not ?

Please suggest.

AI Summary

CARO applicability extends to private subsidiaries in a chain when the ultimate holding company is public.
CARO 2016 is directed to public companies and to private companies that are a subsidiary or holding company of a public company. Therefore a private company (X) that is a subsidiary of an intermediate private company (Y) will be subject to CARO 2016 where Y is itself a subsidiary of a public company (Z), since the ownership chain brings X within scope.