Sec 4 (7) of Companies Act

hi,

Can anybody help me, I need an urgent answer for this.

For a company having a paid up capital of 100,000; 99,998 shares are held by a US company where as 2 shares are held by an individual as a nominee of the same US company. Will this make this company originally incorporated as a private company in India a subsidiary of a public company  making its liable to obtain Central Govt approval under sec 198?

An urgent answer is much appreciated, Many thanks,

Raj