Understand with an example:

Mr. Arun is the director of a company named Arun A Pvt Ltd.

There's a surplus fund of 50 Rs in this company.

You generate a DD from this company.

Now, to explain that you are investing in Saurabh's company, which is my donor company.

Now, Saurabh's company's TPF fund will either be transferred to your other company or placed in a trust/ngo.

But, if we are transferring it to a different company, Mr. Arun should not be the director there; it should have a director named XYZ.

Then, Saurabh's TPF company will be transferred to XYZ Pvt Ltd for investing purpose or donation form if it's trust/ngo.

The director of the company you're acquiring should be completely different from the director of the company generating the DD; they should not be the same.