Interest free loan query

Dear Mr.Mahajan,

                          Interest free fundings is normally carried out between two subsidiaries or holding company with its sister or subsidiary company or between two associated enterprises where the transaction is carried out as part of international trade. Howver, as per sec.295 a public company should not give loan to its director without obtaiing prior approval of central government.

Morever, sec.372 reating to intercorporate loans and investment is also applicable.