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.

2. 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

3. 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]

4. 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.

5. 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).

6. 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.

7. 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.

8. 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.

9. 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).

10. 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]

11. 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

12. 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.

13. 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.

14. 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

15. 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.

16. 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.

17. 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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