Cross Limited is a company incorporated under the erstwhile the Companies Act, 1956 while XYZ Private Limited is a company registered under the…

(i) Section 1 of the Companies Act, 2013, provides that the provisions of this Act shall apply to companies incorporated under this Act or under any previous company law. Hence, the provisions of the Companies Act, 2013 are also applicable on Cross Limited. (ii) According to section 2(71) of the Companies Act, 2013, public company means a company which is not a private company. Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles. According to section 2(87) of the Companies Act, 2013, "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: (1) controls the composition of the Board of Directors; or (2) exercises or controls more than one-half of the total voting power either at its own or together with one or more of its subsidiary companies. In the given question, total voting power in XYZ Private Limited is: Particulars Amount in ₹ Convertible Preference Shares (carrying voting rights) 1,00,00,000 Equity Shares 1,00,00,000 Total Voting Power 2,00,00,000 Cross Limited holds more than one- half of the total voting power [(₹ 10,00,000 equity shares+1,00,00,000 preference shares)/2,00,00,000]. Therefore, XYZ Private Limited is a subsidiary of Cross Limited. Further, in terms of the provisions of section 2(71), XYZ Private Limited being subsidiary of Cross Limited (a public company), shall also be deemed to be a public company.