5)The information extracted from the audited Financial Statement of Smart Solutions Private Limited as of 31st March

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Question:

5)The information extracted from the audited Financial Statement of Smart Solutions Private Limited as of 31st March 2020 is as below:
(1) Paid-up equity share capital ` of 50,00,000 divided into 5,00,000 equity shares (carrying voting rights) of ` 10 each. There is no change in the paid-up share capital thereafter.
(2) The turnover is ` 2,00,00,000.

It is further understood that Nice Software Limited, which is a public limited company, is holding 2,00,000 equity shares, fully paid-up, of Smart Solutions Private Limited. Smart Solutions Private Limited has filed its Financial Statement for the said year with the Registrar of Companies (ROC) excluding the Cash Flow Statement within the prescribed time line during the financial year 2020-21. The ROC has issued a notice to Smart Solutions Private Limited as it has failed to file the cash flow statement along with the Balance Sheet and Profit and Loss Account. You are to advise on the following points explaining the provisions of the Companies Act, 2013:

(i)Whether Smart Solutions Private Limited shall be deemed to be a small company whose significant equity shares are held by a public company?
(ii)Whether Smart Solutions Private Limited has defaulted in filing its financial statement.