SS Ltd. wants to appoint Pai as a Technical Director of the company. Pai has requested for a search report before becoming the Director of SS Ltd. in order to know more details of the company. In the meantime, SS Ltd. ap

No, separate search report is required for each of the case as the contents of the search report varies depending upon the purpose/requirement by the entity. The scope of Search and Status report depends upon the requirements of the Bank/ Financial/Institution/Lender/ Investor concerned. A Search and Status report prepared by a Company Secretary in Practice helps Banks/ Financial Institutions/Lenders/ Investors to take conscious decision regarding the quantum of loan/ credit facility to be sanctioned and investment to be made. It also helps in taking an informed and speedy decision assuring the credit-worthiness or otherwise of the company. Search and Status Report has been explained for the following cases: By Banks: Search and Status Report are basic tools for banks to know the viability of their customer who approach the bank for Cash Credit Limits, Term Loans or otherwise. The sole motto of banks is to provide loans against interest. Hence, knowing the current position of the assets being pledged by the companies become important and the only way to know whether such property is already pledged to some other bank or not is the Search Report. The following basic information about the existing loans taken by the Company is given by the Company Secretary through such reports: The date of loan taken by the company and the charge created in such respect; The name and address of the charge holder's; The type of charge i.e. whether joint charge or consortium charge; The amount of loan; The property charged / pledged against such loan; The terms and conditions of such loan i.e. rate of interest, terms of repayment, margin money and extent of operation. By Director: An individual before becoming the Director of the Company may get the Search Report prepared from a Professional for the following reasons: To know the present directors of the company; To know the assets and liabilities of the company; To know the complete history as per ROC records since incorporation.