Due Diligence is a process of reviewing, auiditing, examining and documenting legal, financial, and compliance aspects of the company. It is an in-depth research and study of a possible investment to compose surety for the mentioned numbers are correct and other fiscal data before any agreement.

Due Diligence is generally conducted by the investors to check for compliances followed by the company and factual, background, legal, and accounting checks. This takes place before any business sale, bank loan funding, equity investments, etc. Due diligence is a process in which the legal, financial, and compliance aspects of the company are reviewed and documented. It involves examining all the material facts of a deal or a contract before a legal contract is signed by both parties. Due Diligence is perform both by seller as well as buyers. This is done to be safe and avoid any discripancies.

• • Mergers & Acquisitions:
  Due diligence is done by both the seller and the buyer. While the buyer looks into the financials, litigation, patents, and a whole range of relevant information, the seller concentrates on the experience of the buyer, the financial abilities to complete the transaction, and the ability to fulfil responsibilities taken.
• • Joint Vntures & Collaborations:
  During joint venture deals, the reliability of the company is a subject of concern. Assuming the other company's stand including the adequacy of supplies at their end.
• • Partnership :
  Due diligence is done for necessary alliances, necessary connections, business combinations, and such other alliances.

1. Business Due Diligence

   Business Due Diligence looks into the quality and business prospects of an investment along with the parties involved therein.

2. Legal Due Diligence

   Legal Due Diligence looks into the legal issues,aspects and regulatory aspects involved in intra-corporate and inter-corporate transactions.

3. Financials Due Diligence

   Financials Due Diligence validates financial, operational, and commercial assumptions taken by the company along with a complete review of audit practices, accounting policies, internal controls, and tax compliances of the target company.

4. People Due Diligence

5. Environmental Due Diligence

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The findings obtained from the process of due diligence are summarized and documented in a report termed as the due diligence report. The information collected during this process is essential for decision making that needs to be announced. The Due Diligence report helps in making further company growth monetary and others.

• • Monetary Aspect
• • Personnel Aspects
• • Viability
• • Environmental Aspects
• • Technological Aspects
• • Liabilities

Stage 1.

Assessment of MCA Documents :

The information and documents gathered in this step include Company Information, Director Information, Charges Registered, Documents etc. Check the document checklist here

Stage 2.

Assessment of Articles of association:

In addition to the above, the financial information of the company and other filings with the MCA. Check the document checklist here

Stage 3.

Administration and Share Ownership :

the statutory registers of a company must be reviewed to obtain and validate the information about the directorship and the shareholding.Assessment of Book of Accounts and Financial Statements Assessment of Taxation Aspects,Assessment of Legal Aspects,Assessment of Operational Aspects,Assessment of Statutory Registers of Company etc.

Stage 4.

Due Diligence Aspects :

Analyse the Capitalization, Resources Acquisition, and Margin followed with Rivals Comparative Study, Valuation Multiples.

Stage 5.

Due Diligence :

History of Stock Costing, Stock Suspension, Examine Long and Short-term Risks.

Stage 6.

Due Diligence Surveys :

Includes Questionnaire, Reliable Data Room, Interviews with Beneficiary Management, Internal and External Public Registers.

This may change based on types of Due Diligence and regulation changes by goverment.