Search Report is a a report based on some facts and figures of a particular search. It is a basic Tool for Inspection of Company’s Records in hands of stakeholders specially Banks. The various stakeholders of a company are interested in the matters and activities of a company for their personal benefits as regards investment, repayment etc is concerned. Generally all documents filed or registered by ROC are available for inspection on payment of prescribed fees.
Search Report is mainly prepared by professionals like CA, CS, CWA, Advocates after detailed inspection from the records of the Registrar of Companies
Now a day, Banks are more emphasizing on demanding Search Repots from Companies while opening of Bank Accounts or giving the Loan to Companies. The need for Search Reports arises to keep themselves (Banks) safe and to ensure that the company is not defaulting one or not having defaulting directors and to know the complete history and information about the company.
A search 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 Report. This is an important part of a loan process by Banks to the Companies
Search Report are 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 Report. In such search reports, the Professional gives the complete information about the loans already taken by the company.
Search report contains:
- Name of Company
- Registered Office Address of the Company
- Capital Structure of the Company
- List of Directors of the company since incorporation
- List of Shareholders of the company since incorporation
- List of Registered Charges since incorporation etc.
- The Report may include the other matters also as per the demand of the Bank Officials.
- 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 Charged or pledged against such loan
- The terms and conditions of such loan
- The rate of interest
- Terms of Repayment
- Margin Money
- Extent of Operation