Koyal Ltd. borrows money from a scheduled bank to expand its research section. As a Company Secretary, what are the check-lists available to you for utilization of the money advanced?

To ensure that consistency has been maintained in utilisation of moneys advanced to the mortgagor. The following aspects may be specifically examined: funds have been utilised for the purposes laid down in the indenture. Where funds have not been so utilised, the requisite permission has been taken; requisite conditions laid down to qualify for the outstanding balance of the loan have been fulfilled; the drawals from the loan are being kept in a separate Scheduled Bank Account, payments therefrom are being made in the manner laid down in the indenture, the said scheduled bank has foregone its right to set-off or lien, in respect of the said account, and the mortgagor is maintaining the records pertaining to the said account, as provided in the indenture; no part of the loan moneys has been transferred to call, short term, fixed or any other deposits, without prior consent. Where such consent has been obtained, the scheduled bank has foregone its right to set off any amount due from the company, against the deposits, the deposits have been realised on their due dates and the proceeds thereof re-deposited in the special account; the expenditure has been financed in the manner provided for in the indenture.; and any changes/deviations in the time schedule for completion of the project have been made in consultation with the bank(s)/financial institutions.