Respected Members,
With reference to the captioned subject and pursuant to the provisions of Section 177(9) of the Companies Act, 2013, the Companies which have borrowed money from banks and public financial institutions in excess of fifty crore rupees has to establish a vigil mechanism for their directors and employees to report their genuine concerns or grievances.
However, one of our Company has availed Non Fund Based Facility in form of Bank Guarantee of Rs. 300 Crores.
In view of the above, we have a query that “whether borrowings includes both Fund Based and Non Fund Based Facility”.
Thanks & Regards
CS Omprakash Soni
CAclubindia
