What is a subsidiary Company

A subsidiary company is a term used in company law to describe a company that is controlled
or owned by another company, known as the parent company or holding company. Subsidiary
companies play a significant role in corporate structures and have various legal implications.
Here are some important notes on subsidiary companies according to company law:

Definition of a Subsidiary Company:

 A subsidiary company is a separate legal entity incorporated under the law, but
it is controlled by another company, which is typically referred to as the parent
company or holding company.
Control and Ownership:
 Control generally implies that the parent company holds more than 50% of the
voting rights in the subsidiary, giving it the power to make significant business
decisions.
Distinct Legal Entities:

Subsidiary companies are distinct legal entities from their parent companies. They have their
own assets, liabilities, and legal obligations.

Financial Reporting:
Both parent and subsidiary companies are required to prepare separate financial statements.
The consolidated financial statements of the group, which include the parent and its
subsidiaries, are also prepared to provide a comprehensive view of the group's financial
position.

Corporate Governance:
Subsidiary companies typically have their own board of directors and management teams.
However, the parent company often exerts control over major decisions through board
representation or voting rights.

Liability:

Subsidiary companies have limited liability, which means their shareholders are generally not
personally responsible for the company's debts and obligations.
Mergers and Acquisitions:

Subsidiary companies are often involved in mergers, acquisitions, and divestitures. The
parent company may acquire or sell subsidiary companies to achieve strategic objectives.
Legal Framework:

The legal framework for subsidiary companies varies by jurisdiction. Company laws and
regulations govern the establishment, operation, and dissolution of subsidiary companies.
Reporting Requirements:

Subsidiary companies are typically required to report their financial information, ownership
structure, and related-party transactions to regulatory authorities in compliance with company
law.
Tax Implications:

Tax laws often treat subsidiary companies differently from independent entities. Transfer
pricing, tax consolidation, and other tax-related considerations are essential for multinational
corporations with subsidiaries in different countries.
Liability of Parent Company:

In some cases, the parent company may be held liable for the actions or debts of its
subsidiary, especially if it exercises excessive control and ignores the subsidiary's separate
legal status.
Protection of Minority Shareholders:

Company law may provide mechanisms to protect the rights and interests of minority
shareholders in subsidiary companies, including rights to information, approval of major
transactions, and exit options.
It's important to consult the specific company laws and regulations in your jurisdiction, as
they may vary from one country to another. Understanding the legal and financial
implications of subsidiary companies is crucial for both parent and subsidiary companies to
ensure compliance and effective corporate governance.
 Scaledge India Private Limited
Scaledge India Private Limited is a privately incorporated company established on October 3,
2011. It operates as a non-government entity and is registered with the Registrar of
Companies in Cuttack. The company has an authorized share capital of Rs. 20,000,000, and
its paid-up capital stands at Rs. 674,000.
The primary focus of Scaledge India Private Limited is in the field of software. Its activities
include software publishing, consultancy, and software supply. Software publishing
encompasses the production, supply, and documentation of pre-made (non-customized)
software, operating systems software, various business applications software, and computer
games software designed for multiple platforms. The consultancy aspect involves offering
tailored software solutions by analyzing the specific needs and issues of clients. This may
include creating customized software based on individual orders and developing software
according to user directives. Additionally, the company provides software maintenance
services and engages in web page design.
The last recorded Annual General Meeting (AGM) for Scaledge India Private Limited took
place on an unspecified date, and its most recent balance sheet was filed on March 31, 2021.
This information is sourced from records maintained by the Ministry of Corporate Affairs
(MCA).
In summary, Scaledge India Private Limited is a privately held software company registered
in Cuttack, India, primarily engaged in software publishing, consultancy, and supply, with a
focus on customized software solutions.