VISWANATHAN ARUNACHALAM

( A pvt limited) 50% 0f equity in B pvt limited, and has the to direct and instruct the management and operations of the B pvt limited,it owns and maintains the authority to add or remove board members, directors and other key management and personnel. A pvt limited may have strict managerial control or may allow subsidiaries to act with some level of autonomy for day-to-day business operations, including lower- and midlevel hiring and certain budgeting decisions. B pvt limited the subsidiary co,, has little to no financial control over its operations. Even independently acting subsidiaries are ultimately financially controlled by A pvt limited *(,itsholding company). This includes financial activities such as investment decisions, sales projections and budgeting. If B pvt limited ,was itself a holding company prior to becoming a subsidiary of another holding company, all of its subsidiaries also become subsidiaries of the top holding company. Thus The holding company( A pvt limited ) has all rights and responsibilities of ownership for its B pvt limited,, Thus the relationship is established.. regards. viswanathan arunachalam iyer