Section 2(1)(68) “subsidiary company” or “subsidiary”, in relation to any other company (that is to say the holding company), means a company in which the holding company

• controls the composition of the board; or

• exercises or controls more than one-half of its voting securities either by itself or together with one or more of its subsidiary companies:

Provided that such class or classes of holding companies shall not have layers of subsidiaries beyond such numbers, as may be notified,

Explanation. For the purposes of this clause  

• a company shall be deemed to be a subsidiary company of the holding company even if the control referred to in sub-clause (a) or sub-clause (b) is of another subsidiary company of the holding company;

• the composition of a company’s board shall be deemed to be controlled by another company if that other company by exercise of power exercisable by it at its discretion can appoint or remove all or a majority of the directors;

• the expression ―company‖ includes any body corporate;

“layer” in relation to a holding company means its subsidiary or subsidiaries;