The Company enjoys ‘separate legal entity’ from that of its promoters, investors and directors. It can thus raise and invest capital in its own name. It has its own PAN Card. It can sue and be sued in its own name.

A Company uses both kind of capital: Owned capital and Borrowed capital for its business (especially long-term projects).

Banks and various State Financial/Industrial Investment Corporations, while granting loans to companies invariably obtain a status report on the position of borrowings made by the Company and the particulars of charges already created by the company on its assets. Government Authorities like Income Tax, GST, RBI, SEBI can also ask for the Search Report to know the present status of the company and various other financials filed by the company to the concerned Registrar of Companies.

Thus, widely, 2 kinds of Search & Status can be undertaken by a Company.

A. Search & Status Report on the security that has been created on the assets of the Company and the amounts already raised from the market, which is not the owner’s fund.

B. A comprehensive Search & Status Report which along with covering the Report as mentioned in point A above, also covers other information of the Company- Directors, KMP, shareholding pattern, Capital structure, Compliance position related to various authorities and any other matter that a particular institution is looking for.

Our 3 Step Simple Process

Engagement & Consultation

Information, Collection & Documentation

Submission of Search & Status Report

Important points covered under Comprehensive Search & Status Report

Company Details (Name, CIN, Date of Incorporation etc)

Share Capital History

List of Members with full history

MoA and AoA (changes therein, all the Clauses)

Other compliances

The Company has requisite approval(s) from shareholders to take loans

Search & Status Report (Charge Related)

  • The Search and Status Report should give exact details of particulars of charges/modifications/ satisfactions as effected, filed and registered from time to time.
  • Ascertain as to whether the amount secured by the charge as per the documents executed has been duly mentioned.
  • In case of modification of charge ascertain whether the names of documents effecting the modification are mentioned and whether the particulars of modification are clearly mentioned.
  • Identify those charges and modification of charges, which have been created in favour of a particular lender.
  • Ascertain as to whether ‘properties’ offered as security are mentioned as per the documents creating the charge and attached with the Forms and verify whether they are as per the terms of Sanction.
  • In case of charge, the particulars of documents attached with forms, amount secured by the charge as per the documents and/or sanction ticket, the properties/assets secured by the charge, the terms and conditions governing the charge and the name of the lender is properly mentioned in the relevant columns of Forms No. CHG-1.
  • Take the particulars of the documents creating the charge as specified in CHG-1 and CHG-9
  • Check whether the terms and conditions governing the charge have been mentioned. — Ascertain whether the name of the lender is properly mentioned.
  • Ascertain whether the name of the lender is properly mentioned.

Steps of Conducting Search & Report and Report generation

  • ●  Basic Consultancy on type of Company
  • ●  Collection of necessary information and documents
  • ●  Collating and Correlating data
  • ●  Iterations, If any
  • ●  Preparation of Final Report