Loan to foreign company by an Indian company

Indian Resident may lend out of EEFC A/c (Exchange Earners’ Foreign Currency A/c) for trade related purposes to overseas importer customer. In case such lending is more than USD 100,000 the same should be supported by guarantee from a bank of international repute situated outside India in favor of Indian lender.

Can a company in India provide a loan to a inter company in foreign territory and the director of the company for both the companies are one.