Due Diligence

Due Diligence Services

1. Financial Due Diligence:

In order to get a good understanding of the historical financial situation and unearth the soundness of the financial position and performance of a target company, a detailed and in depth analysis of the financial performance of the target for the concerned period (as per the Client’s requirement) which shall include a brief overview of the Target’s Business, a detailed review of the major Accounting policies and Accounting Procedures followed, Quality of the financial information maintained, an in-depth analysis of the revenues generated along with the associated costs and the margin levels, quality of cash flows generated, nature of working capital requirements, quality of Long lived assets and that of the Net Assets available to shareholders.

2. Taxation Due Diligence:

In order to obtain a good understanding about the Target Company’s Compliances to the applicable tax provisions and to quantify any contingent outflow of funds due to active non-compliance by the target company with the applicable tax provisions and regulations, undertake procedures which shall include but not limited to verification of the timely filing of the Income Tax Returns, analysis of records pertaining to the latest assessments conducted by the Income Tax authorities and identify and comment on the issues related to it, evaluation of all possible implications of transfer pricing policies on the various transactions entered into by the company, analysis of the records pertaining to the latest assessments conducted by the Income Tax Authorities with regards to TDS as well as the Goods and Service Tax Authorities and comment on the issues related to it.

3. Legal Due Diligence:

To obtain a good understanding of the due compliance by the company with the applicable rules and regulations prescribed the relevant governing authority, we shall undertake procedures which will include but shall not be limited to an in-depth review of all the documents, contracts and other legal and general records prescribed to be maintained by the Companies Act 2013 (hereinafter referred to as Act), extensive analysis of the regular MCA filings as guided by the Act, in time filing of the various documents and other compliances prescribed by the Act and other relevant laws such as the FEMA, SEBI Regulations, etc.

4. Secretarial / Compliance Due Diligence

There are multiple laws and regulations that would apply to different kind of business and entities. A Secretarial / Compliance due diligence involves checking of applicability of various laws and regulations and adherence to these. There are certain laws that apply to all Companies like Company law and labour laws whereas as some are sector specific such as FDI in retail, insurance businesses etc. In a due diligence each of these would be reviewed in detail.

Secretarial DD services includes;

  • Overview of Company charter documents and other regulatory filings
  • Review of Minutes of the Meeting, Share allotment filings
  • Understanding of ESOP Scheme, Grant Documents and Cap Table
  • Overview of vendor contracts, partnership agreements and key-employment contracts

5. Commercial Due Diligence

Along with a standard diligence scope, Constellation Blu believe that it would be of more relevance if our due diligence included in depth review and reporting of key areas of the business, i.e. conduct basic reference checks, test the product wherever possible, check for customer feedback and vendor feedback, going through lifecycles of a typical sale / service transaction that a company would have etc. It involves;

  • Review of business metrics and highlighting the trends
  • Validation of customer and supplier feedback
  • Review of forecasts and validating the forecast’s assumptions

Energy & Renewables

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Energy & Renewables

Law Practices

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Some Answered and Questions

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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.