1. Section 372A will not apply in case of loan made by, guarantee given or security provided by a Holding Company to its Wholly Owned Subsidiary. The Section will apply in case of a loan made, guarantee given or security provided by a Holding Company to its subsidiary(will not be applicable only in case of Wholly Owned Subsidiary) and will also be applicable in case of loan made, gaurantee given or security provided by a subsidiary to its Holding Company.
2.Section 372A(1)(ii) covers guarantee given or security provided in connection with a loan made by a Body Corporate to a Third Party or vice versa. Hence, section 372A will be applicable in your case.
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