Search Report is a basic tool for inspection of company's record in hands of stakeholders. The need for Search Reports arises to ensure that the company is not the defaulting one or having not the defaulting directors and to know the complete history and information about the company. Banks are more emphasizing on demanding Search Repots from Limited Companies while opening of Bank Accounts or giving the Loan to such Companies. Due diligence means the research done by a reasonable business or person before entering into an agreement or a financial transaction with another party. The term will more commonly apply to voluntary investigations but it can be a legal obligation.