As per Company Act, If 51% or more of the paid-up share capital of a company is held by the Central Government and/or any one or more State Governments, the company becomes a Government company. A subsidiary of a Government company is also a Government company.

Please inform whether:
1. PAID CAPITAL includes Equity and Preference both or only Equity.
2. The 68% equity of a Company held by Government (55.6% GoI & 12.4% Banks, LIC & FIs)
but together with Preference capital the holding of GoI, Bank, LI and FIs is less than 51% whether it is a Government Company.

Please guide us with your expert advise.