(1) The obligation to draw up the consolidated report under regulation 8 does not apply to directors of -

(a) a parent undertaking of a small group, except where any affiliated undertaking is a public interest entity;

(b) a parent undertaking of a medium-sized group, except where any affiliated undertaking is a public interest entity;

(2) A group is a "small group" if it consists of parent and subsidiary undertakings to be included in a consolidated report and which, on a consolidated basis, meets at least two of the three following criteria on the balance sheet date of the parent undertaking -

(a) its balance sheet total does not exceed £5.1 million net (or £6.1 million gross);

(b) its net turnover does not exceed £10.2 million net (or £12.2 million gross);

(c) its average number of employees during the financial year to which the balance sheet date relates does not exceed 50.