As a Practising Company Secretary, while carrying out due diligence regarding the loans taken by Quick Ltd. from a nationalised bank, how would you ensure that the company has not committed any wilful default in the matt

The following are the checkpoints to ensure that the name of the company has not committed any wilful default in the matter of the repayment of the loan: Check that the name of the Company or its Director(s) does not appear in the Defaulters list of Reserve Bank of India; Check whether the company has/has not entered into any One Time Settlement (OTS) arrangement with any FI/Bank(s) during the period to which the Report pertains. Professional Responsibility and Penalty for False Diligence Report Any failure or lapse on the part of a Practising Company Secretary (PCS) in issuing a Diligence Report may not only attract penalty for false reporting and disciplinary action for professional or other misconduct under the provisions of the Company Secretaries Act, 1980 but also make him liable for any injury caused to any person due to his/her negligence in issuing the Diligence Report. Therefore, it becomes imperative for the PCS that he/she exercises great care and caution while issuing the Diligence Report and also adheres to the highest standards of professional ethics and excellence in providing his/her services. While preparing the Diligence Report the PCS should ensure that no field in the report is left blank. If there is nothing to be reported or the field is not applicable to the company, then the PCS should write 'none' or 'nil' or 'not applicable' as the case may be. The PCS should obtain a list of statutes applicable to the Company before proceeding with the assignment for issue of Diligence Report.