Applicability of sec 295

U CAN SEE BELOW FILE

Since co A & B are subsidiaries of public co they are public companies by definition. Sec 295 does not have a retrospective effect. Applicability of the act has to be sen at the time the loan was made. Just confirm that the directors of the borrowing company were not accustomed to act as per the directions of the lending company in case they were then section 295 was being applicable even before director of one company was to be appointed as the director of the other. 

A  Loan given by Subsidiary Company of the Holding Company to another Subsidiary Company of the same holding company would not attract the provisions of Section 295.