As per section 177(9), a class or classes of companies is required to estabhils an Vigil Mechanism. Further, as per Rule 7, defines such class or classes of companies as follows:
1. The company which accepts public deposit.
2. The company has borrowed from banks/FIs in excess of Rs. 50 crore.
My question is pertaining to point no. 2 above, if a company has crossed the borrowing limit and within few days, said borrowings reduced below the threshold limit, then there is need to establish such mechanism.
just crossing one time the borrowing limit makes mandatory for the given company to establish and keep vigil mechanism forever.
Looking forward to your kind reply please.
Harvinder Kumar Dinkar