Caro applicability

whether CARO is applicable or not, is given in CARO Clause 2, which is as below:-

CARO shall apply to every company including a foreign company as defined in section 591 of the Act, except the following::

- a Banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);

- an insurance company as defined in clause (21) of section 2 of the Act;

- a company licensed to operate under section 25 of the Act; and

- a private limited company with a paid-up capital and reserves not more than fifty lakh rupees and does not have loan outstanding exceeding Rupees Twenty Five lakhs from any bank or financial institution and does not have a turnover exceeding five crores rupees at any point of time during the financial year

Thus, CARO applies to all companies except as given above.

Now, you question seems wrt Pvt. Ltd. Co., so as per the definition of Pvt. Ltd. Co., there is nothing given that if holding company is ltd. company, the Pvt. Ltd. Co. will also be treated as Ltd. Co. {although that provision is incorporated in Companies Bill 2013}.

So, if CARO applies to Holding Co., it is not necessary that it will apply to subsidiary company also {it will apply, if it doesn't fall in exception coverage}