TSR Private limited is holding majority out of total share capital of AVS indirectly through its subsidiary and

thus it become holding company of AVS. Explanation: According to Section 2(87) of the Companies Act, a
Company shall be deemed to be a subsidiary of another Company, only if: i. Control on BOD - When a company
have control over the composition of Board of directors of another company, then the former becomes the
holding and the latter become a subsidiary company. ii. Control by ownership -  exercises or controls more than
one-half of the total share capital on its own or  controls more than one-half of the total share capital through
one or more of its subsidiary companies. Hence, a company will be the subsidiary of a company which holds a
majority of shares in it through its subsidiary company or companies. In this case, the equity share capital of
AVS Pvt. L