Foreign income taxation limited company

What is the status of the company? Is it linked with any acts of Indian law?

On What basis he received remuneration? As director's remuneration or dividend or any other?

No company not linked with any Indian law. It’s foreign registered limited company. Totally different entity not connected at all with Indian law. 
 

resident individual is 100% share holder of company and he is borrowing money from company for own investment in different mutual funds. He claimed he didn’t withdraw profit from company, he took borrowing. 

For borrowings from foreign entity, there will not be income tax applicable, but there is restriction form RBI.

Refer:  https://www.rbi.org.in/commonperson/English/Scripts/Notification.aspx?Id=850

Thanks for clarifying. While I’ve gone through RBI website I found if borrowing is less than 5m $ - drawer must own atleast 25% paid capital in the borrowing company. And that fall under the automatic route where no need to take permission of RBI. Is that correct? If you can highlight this.
 

in our case resident is100% shareholder of the company and borrowing it’s below $5m , will he be in default as per RBi?

Refer:: https://www.rbi.org.in/commonperson/English/Scripts/Notification.aspx?Id=300   and its amendments from time to time.