Meaning / Definition: A step down subsidiary company means the subsidiary company of a company which is subsidiary of another company.
Seems confusing. Isn't it?
You will understand it easily if you go through the below example:
H Limited – a Holding Company
S Limited is the subsidiary company of H Limited.
SS Limited is the subsidiary company of S Limited.
In the above case, SS Limited is the step down subsidiary of H Limited, while S Limited is the Direct Subsidiary of H Limited.
First (1st) step down subsidiary- meaning
If SS Limited will further have any subsidiary, suppose SSS Limited is the subsidiary of SS Limited, in that case, SS Limited will be the First (1st) step down subsidiary of H Limited and SSS Limited will be the step down subsidiary of H Limited.