A Search & Status report traces the history of a company or the property held by the company – i.e. who is the original owner of the property and how it has mortgaged with various banks over a period of time before reaching the present Bank who has demanded the Search & Status Report. This is an important part of a loan process by Banks to the Companies. A Search & Status report is usually prepared and drafted by Professionals, who after visiting the registrar’s office (Registrar of Companies) and inspecting the property documents, issues the certificate to the Bank stating the facts about the company.
Similarly it can be used for investors or banks who give loans for our federation .Investors will know financials ,loans about the Company .
Search & Status Report is mainly beneficial and demanded by following persons /entities:
Search & Status Reports is the basic tool in the hands of the Banks to know about the viability of their customer who approach the banks for CC Limits, Term Loans or otherwise. As the sole moto of the Banks is to provide the loan to the customers is for earning the interest. Hence the Banks want the current position of the assets being pledged by the companies. And the only way to know whether such property is already pledged to some other bank or not, is the Search & Status Report. In such Search & Status reports, the Professional gives the complete information about the loans already taken by the LLPS , Pvt Limited ,Public Limited Company.
The basic information given in Search & Status Report about the existing Loans is as follows:
- The date of Loan taken by the company and the charge created in such respect
- The name and Address of the Charge Holders i.e. Bank
- The type of Charge i.e. whether joint charge or consortium Charge
- The Amount of Loan
- The Property Charge/ pledged against such loan
- The Terms and conditions of such loan i.e.
(i) The rate of interest
(ii) Terms of Repayment
(iii) Margin Money
(iv) Extent of Operation
Modification: If the charge has been modified during the continuation of such charge, the details are also provided that on which date the charge had been modified and what was the nature of such modification.
Charge Satisfaction: If any time any charge is satisfied, i.e. the whole amount is paid back by the company to the Bank
By Shareholders : Shareholders may also demand the Search & Status Report of the company for the following reasons:
- To now the Search & Status of the company
- To know the Search & Status of their shares held in the company i.e. how many shares they held, on which date their shares were being transferred, from whom the shares were being transferred
- To know about the Directors in the company
- To know about the complete history as per ROC records since incorporation before investing in such company
- An individual before becoming the Director of the company may get the Search & Status Report prepared from Professional
- To know about the Present Directors of the company
- To know the Assets and Liabilities of the company
- To know about the complete history as per ROC records since incorporation.
Customer and Suppliers
Before entering into any agreement/ contract with the company, the suppliers or the Customers get the Search & Status Report drafted.