What is the Search and Status Report. What are the points to be considered while finalizing the Search and Status Report ?

A Search and Status Report contains two aspects. The first being 'search' which involves physical inspection of documents and the second activity 'status' which comprises of reporting of the information as made available by the search. Thus a search and status report de facto acts as a 'Progress Report' on the legal aspects and also a ready reckoner of the exact position. The Search and Status Report enables furnishing of information to the lender as to whether the charges created through various documents are in fact registered with Registrar of Companies and whether such particulars reflect the correct position of charges held by Lenders. As the Report provides information on the charges created in favor of other lenders, it enables the lenders to assess the exact position of the company and to foresee where they would stand, if the company would go into liquidation. Following have to be considered while finalizing the Search and Status Report: The Search and Status Report should give exact details of particulars of charges/ modifications/ satisfactions as effected, filed and registered from time to time. Identify those charges and modification of charges, which have been created in favour of a particular lender. Take the particulars of the documents creating the charge as specified in CHG-1 and CHG-9. Ascertain as to whether the amount secured by the charge as per the documents executed has been duly mentioned. Ascertain as to whether 'properties' offered as security are mentioned as per the documents creating the charge and attached with the Forms and verify whether they are as per the terms of Sanction. Check whether the terms and conditions governing the charge have been mentioned. Ascertain whether the name of the lender is properly mentioned. In case of modification of charge ascertain whether the names of documents effecting the modification are mentioned and whether the particulars of modification are clearly mentioned. In case of charge, the particulars of documents attached with forms, amount secured by the charge as per the documents and/or sanction ticket, the properties/assets secured by the charge, the terms and conditions governing the charge and the name of the lender is properly mentioned in the relevant columns of Form CHG-1