As per Section 2(6) of the Companies Act, 2013, an Associate Company is defined as follows:
“Associate Company”, in relation to another Company, means a company in which another company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company.
For the purpose of Section 2(6) of the Companies Act, 2013, explanation provided is as below:
- The expression “significant influence” means control of at least twenty percent of total voting power, or control of or participation in business decisions under an Agreement.
- The expression “joint venture” means a joint Agreement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.
Therefore, for a Company to be considered as an Associate Company of another company either the company should have significant influence over the other Company or it should be a joint venture company.
ELCOT has number of associate/ joint ventures companies whose shares are held by private promoters and ELCOT. Representatives of ELCOT are appointed as Directors of such companies along with Managing Director for efficient management purpose.
Some of the Associate/Joint Ventures of ELCOT include
- ELNET Technologies Ltd, Chennai
- Tidel Park Coimbatore Ltd, Chennai
- AGT Electronics Ltd, Coimbatore
- Kody Teck Ltd , Chennai
- Intwel Technologies Ltd,Madurai
- Ravichandra Systems and Computer Services Ltd, Coimbatore
- DCL Software Ltd, Chennai
- Iykot Hi-Tech Toolroom Ltd, Chennai