UNIVERSITY INSTITUTE OF LEGAL STUDIES, PANJAB UNIVERSITY,
CHANDIGARH
HOLDING AND SUBSIDIARY COMPANY- TATA
COMPANY
A project report submitted as a part of internal assessment of the course [Link].B. {hons} in
the subject of COMPANY LAW.
SUBMITTED TO: SUBMITTED BY:
Dr. Rita Kalpana 157/20
Sec C, 8th Semester
[Link].B. (Hons.)
ACKNOWLEDGEMENT
I would like to express my sincere gratitude to my teacher Dr. Rita for her enthusiasm,
patience, insightful comments, helpful information, practical advice and unceasing ideas that
have helped me tremendously at all times in my research and writing of this assignment. Her
immense knowledge, profound experience and professional expertise in the subject has
enabled me to complete this research successfully. Without her support and guidance, this
project would not have been possible.
Secondly, I would also like to thank my parents and friends who helped me a lot in the
making of this project .
~Kalpana
INDEX
• INTRODUCTION
• HOLDING COMPANY
• SUBSIDIARY COMPANY
• CONTROLS COMPOSITION OF BOARD DIRECTORS
• ATTRIBUTES OF SUSIDIARY
• TATA COMPANY
• TATA GROUP SUBSIDIARIES
• BIBLIOGRAPHY
INTRODUCTION
The Companies Act 2013 of India defines a company as-A registered association which is an
artificial legal person, having an independent legal, entity with a perpetual succession, a
common seal for its signatures, a common capital comprised of transferable shares and
carrying limited liability. A more precise, global and modern definition of a company could
be: A business entity which acts as an artificial legal person, formed by a legal person or a
group of legal persons to engage in or carry on a business or industrial enterprise.
HOLDING COMPANY
[Link] 2(46) of the Companies Act, 2013 defines Holding Company. The company is said
to be the holding company if that particular company holds/owns at least 50% of the other
companies and has the authority to make management decisions, influences and controls the
company's board of directors. A holding company may exist for the sole purpose of
controlling and managing subsidiary companies.
[Link] company is a company that doesn't conduct any operations, ventures, or other
active tasks for itself. Instead, it exists for the purpose of owning assets. In other words, the
company does not engage in the buying and selling of any products and services. Instead, it
was formed so that it gains control over one or more companies. One of the popular firms of
business combination is by means of holding company or Parent Company. A holding
company is one which directly or indirectly acquires either all or more than half the number
of Equity shares in one or more companies so as to secure a controlling interest in such
companies, which are then known as subsidiary companies.
Holding companies are able to nominate the majority of the directors of subsidiary company
and therefore control such companies. Holding company meet directly from such subsidiary
company or it may acquire majority or shares in existing company. Such company also
considered as subsidiary company in which holding company acquired majority shares.
HOLDING COMPANY
Owns/ controls >50% total share Owns/ controls >20% total share
capital or exercises control of board. capital or business decisions under
agreement.
SUBSIDIARY COMPANY ASSOCIATE COMPANY
SUBSIDIARY COMPANY
1. A subsidiary (sub) is a business entity or corporation that is fully owned or partially
controlled by another company, termed as the parent, or holding, company. Ownership is
determined by the percentage of shares held by the parent company, and that ownership stake
must be at least 51%.
2. Section 2(87) of the Companies Act, 2013 defines the Subsidiary Company. The
subsidiary company is the company that is controlled by the holding or parent company. It is
defined as a company/body corporate where the holding company controls the composition
of the Board of Directors. As per the Companies Amendment Act, 2017, Section 2(87)(ii), if
the holding company have control over more than one-half of the voting power of another
company, that particular company will be identified as the subsidiary company.
Controls Composition Of Board Of Directors:
What do we understand about "Controls the composition of Board of Directors?
The composition of a company's Board of Directors shall be deemed to be controlled by
another company, even if the same is not actually so controlled, if that other company by
exercise of some power exercisable by it at its discretion can appoint or remove all or a
majority of the directors.
Sometimes companies enter into an agreement or an understanding with other companies to
procure/receive some financial/technical/marketing/copyright/royalty /other sorts of
assistance, in return of some powers to exercise their discretions in their
Financial/Economic/Commercial decision processing. It means they allow other companies
to play a strategic role in their management as they were provided with some sort of
assistance, which is very important in running the business.
Attributes of a Subsidiary
A subsidiary operates as a separate and distinct corporation from its parent company. This
benefits the company for the purposes of taxation, regulation, and liability. The sub can sue
and be sued separately from its parent. Its obligations are also typically its own and are not
usually a liability of the parent company.
The minimum level of ownership of 51% guarantees the parent company the necessary votes
to configure the subsidiary’s board. This allows the parent to exercise control in company
decision-making.
Parents and sub-companies need not operate in the same location, nor be in the same line of
business. Subsidiaries may also have their own sub-companies; the line of succession forms a
corporate group with varying degrees of ownership.
TATA COMPANY
Milestones for the Tata Group
•1868: Jamsetji Tata establishes the Tata Group and opens a trading company in Mumbai.
•1907: The Tata Group established India's first steel mill, the Tata Iron and Steel Company
(TISCO), which went on to become one of the largest steel producers in the world.
•1910: The Indian Institute of Science (IISc) is founded in Bangalore with funding from the
Tata Group.
•1932: Tata Airlines (later renamed Air India) is established as India's first airline.
•1945: Tata Chemicals is established as a manufacturer of chemicals and fertilisers.
•1968: Tata Consultancy Services (TCS) is founded as a software services company.
•1975: The Indian government nationalises the Tata Group's oil company, Indian Oil
Corporation (IOC).
•1984: Tata Motors introduces the Tata 407, India's first light commercial vehicle.
•1991: Tata Group enters the telecommunications industry with the launch of Tata
Teleservices.
•2000: The Tata Group acquires Tetley Tea, a British brand, in one of its largest overseas
acquisitions.
•2008: Land Rover and Jaguar were acquired by Tata Motors from Ford Motor Company.
•2009: Tata Motors launches the Tata Nano, the world's cheapest car.
•2012: Tata Steel acquired Corus Group, a European steel company, in one of the largest
overseas acquisitions by an Indian company.
•2016: Tata Sons, the holding company of the Tata Group, removes Cyrus Mistry as
chairman, leading to a highly publicised corporate governance battle.
•2017: Tata Innovation Centre was inaugurated by TCS and Cornell Tech with an investment
of $50 million.
•2018: A new, strong pan-European steel company was created when Tata Steel and
ThyssenKrupp announced a historic joint venture.
•2019: Tata Consumer Products Ltd was formed in May 2019 following the merging of Tata
Global Beverages and Tata Chemicals.
•2022: There was a 9% increase in Tata's net worth and each business or brand of the Tata
Group is run independently by its board of directors.
TATA GROUP SUBSIDIARIES:
List of entities associated with Tata Group:
The following are articles related to the Tata Group, large multinational conglomerate from
India, with many of its operations based abroad in the US and the UK. The Tata Group is
owned by the Tata Sons.
Companies with TATA label
•Subsidiaries within Tata Group :
•Tata AIA, an insurance based joint-venture company with American International Group.
•Tata Capital, a wholly owned subsidiary of Tata Sons Limited, the apex holding company of
the Tata Group.
•Tata Communications, also known as Tata VSNL, a communication company acquired in
2002.
•Tata Consulting Engineers Limited, Engineering, Design and consultancy for all types of
infrastructure and industrial developments. Specialized in power sector. (Established in
1962)
•Tata Consultancy Services, Asia's largest IT company and World's Largest Software and
Services Company
•Tata DoCoMe, a GSM based mobile company with alliance with NTT docomo
•Tata Chemicals
•Tata Defence
•Tata Elxsi, another Tata IT company.
•Tata Global Beverages, the world's second largest tea business.
•Tetley (Subsidiary of Tata Global Beverages)
•Tata Housing Development Company, Real estate development company
•Tata Value Homes Limited (100% Subsidiary of Tata Housing, operating in value and
affordable segments)
•Titan Industries, World's 5th largest watch manufacturer.
•Tata Interactive Systems (TIS), is a provider of performance support systems and e-learning
platforms.
•Tata Marcopolo Motors
•Tata Motors, the world's fifth largest and India's largest automobile company. Tata Motors'
principal subsidiaries include
•Jaguar Land Rover the British company making Jaguar and Land Rover (including Range
Rover) cars
•Fiat-Tata, was a joint venture with Fiat which manufactures automotive components and
Fiat and Tata branded vehicles
•Tata Technologies
•Tata Daewoo
•Tata Marcopolo
•Tata Hispano, coach builder
•Tata Hitachi Construction Machinery)
•Tata Motors Cars produces passenger cars under the Tata Motors marque
•Tata Power, India's largest private sector electricity producer
•Tata Salt
•Tata Sky, a Direct To Homeservice company in alliance with British Sky Broadcasting and
Newscorporations STAR
•Tata Starbucks
•Tata Steel, World's 12th largest steel company.
•Tata Steel Europe, formerly Corus group
•Tata Teleservices, India's second CDMA telecom company.
•Tata Technologies
•TRL Krosaki Refractories Limited, a refractory company, formerly Tata Refractories
Limited with Krosaki Harima Corporation.
•Tata CLiQ, e-commerce website, selling apparel, footwear and electronics.
Subsidiaries without the TATA Label:
•Mjunction, A Tata Steel & SAIL Joint venture- It is India's Largest B2B E-
•Commerce company with GMV more than 3500000 Crore
•C-Edge Technologies, TCS-SBI joint Venture
•CMC Limited Computer maintenance corporation, Information Technology services,
consulting and software company
•Corus Group plc, former name of Tata Steel Europe Tetley, UK based international tea
brand
•Taj Hotels Resorts and Palaces, Owner of 'Taj' hotels
•Computational Research Laboratories,
Tata initiative in high performance
computing
• VSNL International Canada in Canada
• Titan Industries, clock and watch maker in India
• Tanisha, a jewellary brand in India
• Trent (Westside), retail chain
• Brunner Mond, subsidiary of Tata Chemicals
• Voltas
• Vistara, an Indian airline that is a joint venture with Singapore Airlines
• Taj Air Chartered flights
• Infiniti Retail Croma
• Jaguar Land Rover, British car manufacturer, formed when Tata Motors
acquired Jaguar and Land Rover from US multinational Ford in June 2008
• c-Nxt Financials Itd., Enterprise solutions provider
• The Dhamra Port Company Limited
• Rallis India Limited Rallis is an Agricultural Research Company, They
provide Agricultural products and Services. For more info visit
• Educational and Research Institutes:
• Tata Institute of Fundamental Research
• Tata Institute of Social Sciences
• Indian Institute of Science
• Nettur Technical Training Foundation R D Tata
Technical Education
Centre Jamshedpur
• National Centre for Performing Arts
• Tata Management Training Centre
• Tata Memorial Hospital
• Tata Ecotechnology Centre
• TATA CONSULTANCY SERVICES:
INTRODUCTION:
Tata Consultancy Services is India's first software company. Tata Consultancy Services
has the market capitalization of Rs. 4, 95,770crores (74.83 billion $) as on 31st March,
2016 which is 64.29% of the market capitalization of 29 listed companies of Tata Group.
It is the largest and highest revenue generating company of Tata Group. Tata Consultancy
Services (TCS) was established in 1968 as a division of Tata Sons Limited. TCS Ltd. got
the Certificate of Incorporation to initiate its business separately on January 19, 1995.
TCS is the largest company of the Tata group, India's most respected and the largest
conglomerates. Tata Consultancy Services is into IT services, consulting and business
solutions organization. It delivers real-time solutions to their global business clients with
the help of their 324000 well trained IT professionals and consultants all over the world.
It has its unique Global Network Delivery Model, which is considered as the benchmark
of excellence in software development. It is listed on the National Stock Exchange and
Bombay Stock Exchange in India. TCS has more than 60 subsidiaries all over the world.
Key Business Highlights FY 2017-2018
* Signed several industry-defining mega deals in FY18, including the largest IoT deal
with Rolls Royce, and the core transformation deal with Transamerica
* Revenue of $19.09 billion represented a growth of 8.6% in dollar terms over the prior
year, which translates into 6.7% growth in constant currency (cc) terms
* Six industry verticals experienced double-digit growth in co terms, collectively growing
13.2%, while the Banking, Financial Services and Retail (BFSI) and Retail verticals
experienced single-digit growth.
* By geography, co growth was led by Continental Europe (19.1%), the UK (8.6%), Latin
America (7.8%), and India (6.9%)
* Revenue from digital engagements grew 35.3% over the prior year in co terms and
accounted for 21.2% of total revenue
* Delivered an industry-leading operating margin of 24.8% and a net margin of 21%
* Organic talent development initiatives resulted in over 247,000 employees getting
trained in digital technologies, and over 208,000 employees trained in Agile methods,
giving TCS the largest Agile-ready workforce in the world.
No. Label 2017-18 (Rs. crore)
1 Revenue 126.746
2 EBITDA 36.158
3 EBIT 34. 144
4 PAT 25,880
• TATA CHEMICALS Ltd.
Introduction:
Tata Chemicals Limited is a public company founded by J.R.D. Tata at Mithapur, Gujarat
in the year 1939. Jamsetji Tata created the plant to raise a wealth of marine chemicals
from the ocean. The objective was to reach the lives of human in many lives. Tata
Chemicals was the conveyor to reach the lives of human all over the world. It has its
presence across four continents. It is a subsidiary of Tata Group. It is an Indian
multinational, which has significant presence in the chemical industry. Tata Chemicals
has it's headquarter at Mumbai, India. It is the largest chemical company of India having
major operations in India and Africa. Tata Chemicals employ over 4800 employees. The
company has recognized for its clear commitments to their mission of sustainability and
its good environmental management practices. Tata Chemicals is the world's second
largest producer of soda ash. It has its manufacturing facilities in Asia, Europe, Africa
and North America.
Tata Chemicals Limited is a company with interests in businesses that focus on LIFE:
* L-Living
* Industry
* L- Farm
* E-Essentials
The company believes in hamessing the fruits of science for goals that go beyond
business.
Tata Chemicals is an integral part of the life of millions of Indians by the portfolio of its
products. Tata Chemicals is the pioneer and market leader in India's' branded lodised salt
segment. Tatas are always been thinking for people. As a result, to get the clean and safe
drinking water after Tsunami, Tata Chemicals have introduced an innovative, low-cost,
nanotechnology-based water purifier that will provide affordable, safe drinking water to
masses. The strong routes of Mission, Vision and Values have made Tata Chemicals to be
strengthened on principles of sustainability.
Tata Chemicals classifies its products under three categories. Living Essentials, Industry
Essentials, Farm Essentials.
Business Highlights FY18
* Witnessed highest-ever production and sales (India operations) for salt and sodium .
bicarbonate
* Expanded the consumer products range from Tata Salt to pulses, including organic
pulses, nutri-mixes and khichdi with a strong pipeline of value-added products
* Seeded two investments totalling Rs 565 crore in Specialty Chemicals for our
Nutritional Solutions plant in Nellore, Andra Pradesh and Silica based products in
Cuddalore, Tamil Nadu.
* Tata Salt was ranked the third Most Trusted Food Brand in the Economic Times
Survey 2017
* Divested the Urea and Customised Fertiliser Business at Babrala, Uttar Pradesh
effective 12th January 2018 to Yara by way of a slump sale.
Financial Highlights of FY18
No. Label 2017-18 (Rs. Crore)
1 Revenue 10,345
2 EBITDA 2,191
3 EBIT 1,673
4 PAT 2,702
BIBLIOGRAPHY
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