List out at least five common practices of Diversion of Funds adopted by the companies.

Common practices of diversion of funds are: Using of short-term working capital funds for long-term commitments not in conformity with the terms of sanction. Using borrowed funds for creation of assets other than those for which the loan was sanctioned. Transferring funds to group companies. Investment in other companies by way of acquiring equities / debt instruments without approval of lenders. Shortage in the usage of funds as compared to the amounts disbursed/ drawn, with the difference not being accounted for. Over-valuation or absence of requisite collaterals.