Audit

Due Diligence Report Format by a Company Secretary for Bank

DUE DILIGENCE REPORT
Issued by Prac­tis­ing Com­pa­ny Secretary
(Under Sec­tion 2(45) of the Com­pa­nies Act, 2013)

To:
The Man­ag­er – Cred­it & Risk
[Name of Financ­ing Bank]
[Bank Address]

Sub­ject: Legal and Sec­re­tar­i­al Due Dili­gence Report on [XYZ PRIVATE LIMITED]

  1. Introduction

This Due Dili­gence Report is pre­pared at the request of [Bank Name], in rela­tion to the assess­ment of cred­it­wor­thi­ness and statu­to­ry com­pli­ance of [XYZ PRIVATE LIMITED], a com­pa­ny incor­po­rat­ed under the pro­vi­sions of the Com­pa­nies Act, 2013 (for­mer­ly Com­pa­nies Act, 1956), with a view to eval­u­at­ing its eli­gi­bil­i­ty for avail­ing finan­cial facilities.

I, [Your Full Name], Fel­low Mem­ber of the Insti­tute of Com­pa­ny Sec­re­taries of India (FCS No. [XXXX]), Prac­tis­ing Com­pa­ny Sec­re­tary, have car­ried out the legal and sec­re­tar­i­al due dili­gence of the Com­pa­ny as per the scope described herein.

  1. Scope of the Report

This report cov­ers the fol­low­ing areas:

  • Cor­po­rate & Sec­re­tar­i­al Compliance
  • Finan­cial, Statu­to­ry & Reg­u­la­to­ry Filings
  • Charges and Encumbrances
  • Share­hold­ing and Management
  • Reg­u­la­to­ry Licens­es & Approvals
  • Lit­i­ga­tion & Disputes
  • Inter­nal Con­trols, if disclosed
  • Bor­row­ings and Relat­ed Par­ty Transactions
  • Envi­ron­men­tal and Labor Law com­pli­ance (if applicable)
  • Oth­er mate­r­i­al obser­va­tions rel­e­vant to lenders

This report is based on:

  • Phys­i­cal inspec­tion of sec­re­tar­i­al records and registers
  • Review of ROC records and filings
  • Ver­i­fi­ca­tion of statu­to­ry reg­is­ters and minutes
  • Exam­i­na­tion of tax fil­ings and licenses
  • Man­age­ment cer­ti­fi­ca­tions and representations
  1. Com­pa­ny Profile
Par­tic­u­lars Details
Name of the Company [XYZ PRIVATE LIMITED]
CIN UXXXXXXYYYYPTCZZZZZ
Date of Incorporation [DD/MM/YYYY]
Reg­is­tered Office Address [Full Address]
Cor­po­rate Office Address [If dif­fer­ent]
PAN [AAACX1234L]
TAN [DELX12345B]
GSTIN [XXAAACX1234L1ZP]
Nature of Business [e.g., Man­u­fac­tur­ing of Plas­tic Goods / IT Ser­vices / Trad­ing in Chemicals]
Main Objects As per MOA, Clause III(A)
Num­ber of Employees [Num­ber]
Banker(s) [Bank Name(s) & Branches]
Statu­to­ry Auditors [Name, Firm Name, FRN, Peri­od of Appointment]
Inter­nal Auditors [If applic­a­ble]
Sec­re­tar­i­al Auditor [If applic­a­ble]
  1. Cap­i­tal Structure

Autho­rized Share Cap­i­tal: ₹ [●]
Paid-up Share Cap­i­tal: ₹ [●]

Share­hold­ing Pat­tern (as on [Date]):

Share­hold­er Name No. of Shares Face Val­ue % Hold­ing
[Name 1] [●] ₹10 [●]%
[Name 2] [●] ₹10 [●]%

No pref­er­ence shares or con­vert­ible instru­ments are cur­rent­ly outstanding.
Share cap­i­tal is ful­ly paid up. No buy­back or bonus issue in last 3 years.

  1. Man­age­ment & Directors
Name DIN Des­ig­na­tion Date of Appointment Res­i­den­tial Address KYC Sta­tus
[Name 1] [DIN] Man­ag­ing Director [DD/MM/YYYY] [Address] Ver­i­fied
[Name 2] [DIN] Direc­tor [DD/MM/YYYY] [Address] Ver­i­fied

All Direc­tors have valid DINs and have filed DIR‑3 KYC as required.
The Com­pa­ny is not clas­si­fied as a Small Com­pa­ny or a Start-up (unless applicable).

  1. Statu­to­ry Reg­is­ters & Records

All manda­to­ry statu­to­ry reg­is­ters under the Com­pa­nies Act, 2013 have been duly maintained:

  • Reg­is­ter of Members
  • Reg­is­ter of Direc­tors and KMP
  • Reg­is­ter of Charges
  • Reg­is­ter of Relat­ed Par­ty Transactions
  • Min­utes of Board Meet­ings and Gen­er­al Meetings
  • Share Cer­tifi­cates issued and recorded

Reg­is­ters were inspect­ed and found in order. Min­utes are prop­er­ly signed and indexed.

  1. Annu­al Fil­ings and MCA Compliance
Finan­cial Year AOC‑4 Fil­ing Date MGT‑7 Fil­ing Date Sta­tus
[FY 2022–23] [DD/MM/YYYY] [DD/MM/YYYY] Com­pli­ant
[FY 2021–22] [DD/MM/YYYY] [DD/MM/YYYY] Com­pli­ant

No over­due fil­ings as on report date.
The Com­pa­ny is in active sta­tus as per MCA records.

  1. Finan­cial State­ments Sum­ma­ry (Extract­ed from audit­ed financials)
Par­tic­u­lars FY [2022–23] FY [2021–22]
Turnover ₹ [●] ₹ [●]
Net Profit/(Loss) ₹ [●] ₹ [●]
Net Worth ₹ [●] ₹ [●]
Reserves & Surplus ₹ [●] ₹ [●]
Secured Loans ₹ [●] ₹ [●]
Unse­cured Loans ₹ [●] ₹ [●]

Audi­tors have issued an unqual­i­fied opin­ion in their lat­est audit report. No adverse remark noted.

  1. Charges & Borrowings
Charge ID Lender Amount (₹) Type Date of Creation Sta­tus
[CHG1234] [Bank Name] 1.50 Cr Term Loan 01-06-2021 Active

All charges are reg­is­tered with ROC as per Sec­tion 77.
No sat­is­fac­tion or mod­i­fi­ca­tion pend­ing as per MCA records.
Com­pa­ny has pro­vid­ed per­son­al guar­an­tees by direc­tors (if applicable).

  1. Licens­es and Registrations
License Author­i­ty No. Valid­i­ty
GST CBIC [GSTIN] Active
Fac­to­ry License Local Author­i­ty [No.] [Valid till]
Shops & Establishment [State Author­i­ty] [No.] [Valid till]
Oth­er Licenses [e.g., Pol­lu­tion NOC, FSSAI, IEC] [Details] [Valid till]
  1. Tax Compliance
Return Type Author­i­ty Sta­tus
Income Tax Returns Income Tax Dept. Filed till AY [Year]
TDS Returns Income Tax Dept. Up-to-date
GST CBIC GSTR‑1 and GSTR-3B filed regularly
PT, PF, ESI (if applicable) State/EPFO/ESIC Com­pli­ant
  1. Relat­ed Par­ty Transactions

Details of trans­ac­tions with relat­ed par­ties are dis­closed in finan­cial state­ments and have Board approval as per Sec­tion 188.
No mate­r­i­al or unap­proved RPTs were found.

  1. Lit­i­ga­tion / Legal Matters

As per MCA, judi­cial data­bas­es, and man­age­ment certification:

  • No pend­ing civ­il or crim­i­nal pro­ceed­ings against the Com­pa­ny or its Directors.
  • No notices under FEMA, SEBI, ESI, PF, Labour Laws, or oth­er regulators.
  1. Com­pli­ance with Oth­er Laws
  • Labour laws (PF, ESI, Gra­tu­ity) – Compliant
  • Envi­ron­men­tal laws (if applic­a­ble) – NOC obtained and renewed
  • Fac­to­ry Act/Industrial laws – Compliant
  • MSME reg­is­tra­tion – [If applic­a­ble, men­tion status]
  • FEMA/FDI – No for­eign invest­ment reported
  1. Obser­va­tions & Recommendations
  • Com­pa­ny is in good legal stand­ing and com­pli­ant with the Com­pa­nies Act, 2013.
  • No encum­brances or legal restric­tions found that would hin­der lending.
  • The man­age­ment is pro­fes­sion­al­ly run and all gov­er­nance mech­a­nisms appear in place.
  • No adverse remarks in audit reports or reg­u­la­to­ry findings.
  1. Disclaimer

This Report is issued based on the exam­i­na­tion of doc­u­ments and infor­ma­tion pro­vid­ed by the Com­pa­ny and its man­age­ment. It should not be con­strued as a cer­tifi­cate of authen­tic­i­ty of doc­u­ments or as a finan­cial audit. The report is intend­ed sole­ly for the use of [Bank Name] for cred­it assess­ment purposes.

  1. Conclusion

In my pro­fes­sion­al opin­ion and to the best of my knowl­edge and belief, the Com­pa­ny appears to be com­pli­ant with applic­a­ble statu­to­ry and legal require­ments. No mate­r­i­al irreg­u­lar­i­ties or defaults have been observed as on date of this report that would impact its eli­gi­bil­i­ty for bank finance.

For [Your Name]
Prac­tis­ing Com­pa­ny Secretary
FCS No.: [●] | CP No.: [●]
UDIN: [●] (if applic­a­ble)

Date: [●]
Place: [●]
Seal & Signature

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