The process of preparing search/status report enables determination out of total borrowing power, the extent upto which the company has already borrowed money or created charges on its movable and immovable properties an

The term borrowing of money includes all type of borrowings whether secured or unsecured, loan in the nature of debentures or otherwise etc. However, the following are exceptions to it as enumerated under Section 180(1)(c) of the Companies Act, 2013: Temporary loans obtained from the company's bankers in the ordinary course of business: the expression "temporary loans" means loans repayable on demand or within six months from the date of the loan such as short-term, cash credit arrangements, the discounting of bills and the issue of other short-term loans of a seasonal character, but does not include loans raised for the purpose of financial expenditure of a capital nature; Acceptance by a banking company: In the ordinary course of its business, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise, shall not be deemed to be a borrowing of monies by the banking company within the meaning of Section 180(1)(c) of the Companies Act, 2013. Contingent liability like amount outstanding on deferred payment agreement or under guarantees issued by bank or in respect of letter of Credit.