Sec 295

Section 295 is applicable to Public co.and subsi of pub.co.

If any pub. co or subsi of pub.co. give loan, give security, guarantee 

1. to any director,

2.  to any firm, any co.(pub. or private), any body corporate in which such director is a partner or director or hold any key position,

then prior approval of Central Govt. is necessary.

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LENDING CO. : Any Pub. co. or subsi of pub co.

BORROWER : Director, Any firm, Any co. (whether pub., subsi of pub. or private)

This section is not applicable to :

Any private co.

Any banking company

Loan b/w holding n subsi co.

I hope your doubt is clear now....