Section 295 is applicable when a public company gives loan to a firm in which director are interested. it is not applicable on Private Companies when it gives loan to firm in which director are interested.
As per Section 295 of the Companies Act-295- Loans to directors, etc.
Save as otherwise provided in sub- section (2), no company (hereinafter in this section referred to as" the lending company") 1[ without obtaining the previous approval of the Central Government in that behalf shall directly or indirectly,] make any loan to, or give any guarantee or provide any security in connection with a loan made by any other person to, or to any other person by,-
(a) any director of the lending company or of a company which is its holding company or any partner or relative of any such director;
(b)any firm in which any such director or relative is a partner;
(c )any private company of which any such director is a director or member;
(d)any body corporate at a general meeting of which not less than twenty- five per cent. of the total voting power may be exercised or controlled by any such director, or by two or more such directors together; or
(e)any body corporate, the Board of directors, managing director, managing agent, secretaries and treasurers, or manager whereof is accustomed to act in accordance with the directions or instructions of the Board, or of any director or directors, of the lending company.

(2)Sub- section (1) shall not apply to-
(a)any loan made, guarantee given or security provided-
(i)by a private company unless it is a subsidiary of a public company,

For your reference you can see the checklist for submitting application u/s 295 by searching in files coloumn of site.. or by clicking on the following link:
http://www.casansaar.com/files-detail/Checklist-for-Submitting-Application-Under-Section-295-of-the-Companies-Act1956/1320.html

I agree with above answer