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Overview

The due diligence report is a comprehensive document designed to assess the overall risk profile of a target entity by evaluating multiple dimensions over the past five years (where applicable). It serves as a key component in making informed decisions by providing both quantitative and qualitative insights.

1. Purpose of the Report​

The report delivers a multi-dimensional risk analysis to help stakeholders understand the strengths, weaknesses, and potential red flags associated with a company or organization. By consolidating data from various sources, it enables a thorough due diligence process and supports informed decision-making for investments, partnerships, or regulatory compliance.

2. Dimensions and Their Analysis​

Corporate Structure & Operational Capability​

  • Parameters: Scale of the company, management consistency, workforce strength
  • Datasets: MCA Financials, Past Directors data, EPFO records
  • Analysis: Assesses operational scale and managerial consistency for sustainable growth.

Financial Health​

MCA Companies​

  • Parameters: Liquidity, leverage, profitability, business growth
  • Datasets: MCA Documents, GST Turnover
  • Analysis: Evaluates financial stability and growth trajectory

Non-MCA Companies​

  • Parameters: Same as above
  • Datasets: Disclosure-based inputs from vendors
  • Analysis: Same as above

Directors and Individuals​

  • Analysis: Not applicable

Credit History​

  • Parameters: Economic defaults, insolvency risk
  • Datasets: CIBIL, NCLT, NCALT, IBBI, DRT records
  • Analysis: Provides insight into creditworthiness and historical financial missteps

Compliance Rigor​

  • Parameters: Indirect tax, labor, and MCA compliance
  • Datasets: GST filings, EPFO filings, MCA filings
  • Analysis: Highlights adherence to regulatory obligations

Litigation History​

  • Parameters: Litigiousness, criminal background, overall cases, tax litigations
  • Datasets: Supreme Court, High Courts, District Courts, ITAT, CESTAT, ATFP
  • Analysis: Offers view into legal challenges and liabilities

Defaulter and Blacklist Mentions​

  • Parameters: MCA defaults, regulator defaults, agency notices
  • Datasets: MCA, SEBI, SFIO, CBI records
  • Analysis: Identifies instances of financial or operational distress

Sanctions & PEP Mentions​

  • Parameters: Trade restrictions, political exposure
  • Datasets: Global sanctions lists, PEP Dilisense
  • Analysis: Assesses external risks impacting reputation and operations

Promoter & Related Party Quality​

  • Parameters: Legal/regulatory issues, political exposure
  • Datasets: Litigation databases, SEBI, CBI, CCI, CIBIL, MCA, PEP Dilisense
  • Analysis: Evaluates governance, credibility, and potential conflicts of interest

Market Sentiment​

  • Parameters: Adverse media, customer complaints
  • Datasets: Media reports, NCDRC
  • Analysis: Gauges public perception and market trust

3. Analysis Approach​

  • Historical Trend Analysis: Utilizes 5 years of data for predictive insights
  • Risk Scoring and Benchmarking: Aggregates findings into a risk score for peer comparison
  • Actionable Insights: Pinpoints specific risk areas for mitigation and deeper due diligence