Gippy Ltd. has requested you as a Company Secretary in Practice to ascertain financial position of the company as per Para no. 13 of the Diligence Report to be submitted to the bank in accordance with the RBI notificatio

Illustrative checklist for ascertainment of financial position of the company under para no. 13 of the Diligence Report should be as under: Para 13. The Company has complied with the terms and conditions, set forth by the lending bank/financial institution at the time of availing any facility and also during the currency of the facility. To verify the financial position of the company, the company secretary should ensure that: The company has neither put its funds, nor invested them in purchase of shares of any other concern, without the prior approval of the bank(s)/financial institution(s) as stipulated in the loan agreement; No money has been withdrawn from the business, out of the capital or in anticipation of profits, without prior consent of the bank(s)/financial institution(s); and Proposals to undertake inter-corporate loans or other investments, have the prior approval of the bank(s)/financial institution(s). The company has provided adequate provision on depreciation as required under the companies act, 2013 in its book of accounts. Foreign currency exposure of the company as on date. In case of project under implementation — Check whether the margin money has been brought in by the promoters as per the terms of sanction. Furnish the details of inflow viz. date, amount, channel (name of bank(s)), etc. Check the compliance of the provisions of the Companies Act, 2013 regarding the powers of the Board.