Query on applicability of Small Company, CARO & IFC

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caushagarg (Querist)
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27 December 2025 a private company is a subsidiary of company incorporated outside India and its turnover is only Rs 40000 and paid up capital is Rs 1 lakh .
small company definition exclude to a subsidiary company so it means it is not a small company .
for caro since it is pvt company and satisfy the condition of exemption so caro will not apply.
For IFC(Internal financial control) also satisfy exemption limit so ifc also does not apply. being a subsidiary of a foreign company does not affect exemption of CARO and IFC.
Kindly confirm if the above understanding is correct for the purpose of audit report.

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