Clarification: Deferred Payment for Machinery Not Classified as "Borrowings" Under Companies Law Clause (d.

The circular addresses whether the purchase of machinery on a deferred payment basis falls under the terms "borrow" and "debt" as used in specific clauses of a section of the Companies Law. The Department clarifies that the term "borrowings" in clause (d) does not encompass debts arising from the purchase of machinery on deferred payment. This distinction impacts how such transactions are classified concerning the board's powers and restrictions under the law.

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