How to get deeper insights in the auditor's report ?

How to suck out details from Auditors of a Public Ltd Co. and Public Sector Financial Institutions ?

Background :

1. A company issued Redeemable Non Convertible Debentures to Public Sector Financial Institutions like UTI Bank, Bank of Baroda, Canara Bank and UTI Mutual fund.

2. As per the Annual Report of the Company under the heading "Notes on Accounts" the NCDs mentioned above are secured by charge on specific immovable properties being "office premises" & "residential premises".

3. Directors siphoned off the loan funds and defaulted on the amounts payable against the NCDs.

4. Lenders filed recovery suit and company went under liquidation as per court order.

5. Now while liquidating the immovable properties, there is no mention of "residential premises" being liquidated. Only office premises were liquidated.

Question :

1. How & from where to suck information on the address and value of the "residential premises" , which were pledged as security against the NCDs. ??

2. How to and from where to find out why the "residential premises" were not placed under the bid by the official liquidator of the Govt of India, despite having a mention in the Notes on Accounts in the Annual Report ?

Reason of asking :

Connivance suspected between Public Sector FIs managers and private company in "saving" the "residential premises" from going under liquidation.

As far as valuation and mortgage documents is concerned, you can pull out the information from the forms filed with ROC. Say if the form 8 was filed, dowload the same and you can find all docs in attachment.

Next as far as mortgage of resedential unit is concerned, its a normal prcatice from Bankers that they take Resedential properties of Directors as a Collateral Security. At the time of Liquidation, only company property which will be taken into consideration. Colateral Security can be availed at the dicreation of Bankers.

Further Bankers also get the name of Directors in the CBIL even on the bais of Collateral security provider. Thats the advantage they get and so they opt for takinf additional colllateral security from personal property of Directors.

Regards

Jaideep