Where in CARO it is written that it is applicable to a private company which is a subsidiary of a public company? it just says it is not applicable to a private limited company with a paid up capital and reserves not more than rupees fifty lakh and which does not have loan outstanding exceeding rupees twenty five lakh from any bank or financial institution and does not have a turnover exceeding rupees five crore at any point of time during the financial year.
A private limited company, in order to be exempt from the applicability of the Order, must satisfy all the conditions mentioned above cumulatively. In other words, even if one of the conditions is not satisfied, a private limited company’s auditor has to report on the matters specified in the Order. There is no condition that if it is a subsidiary of a public limited company then CARO is applicable.
And for the second question i think it should be applicable as the limits are to checked at any time during the year and hence the order will be applicable.