Exemption in sub‑section (14) applies to calculation of percentage limits specified in the sub‑section - Companies Law - Letter : No. 2/8/54‑PR,

Letter : No. 2/8/54 ‑ PR, dated 23 ‑3 ‑ 1964. Subject:- E xemption in sub ‑ section (14) applies to calculation of percentage limits specified in the sub ‑ section The exemption in sub‑section (14) of section 372 relates to the making of investments by the companies mentioned therein. It does not apply to the calculation of percentage limits specified in sub‑section (2). Thus, while a holding company could make further investments in a subsidiary without the Government s approval by virtue of the exemption under this sub‑section its investments in that subsidiary would count for calculation of the 30 per cent limit specified in sub‑section (2), if it wanted to make any investment in the shares of another company.