Overview
Due diligence and forensic work answer specific questions with evidence: what a business's numbers really show before an investment or loan, or what happened to funds when something has gone wrong.
The firm carries out due diligence for investment, acquisition and lending decisions, and forensic reviews where fraud, misreporting or control failure is suspected. Findings are documented so that they can support management decisions and, where needed, dispute or legal proceedings.
When it is typically needed
- Before investing in, lending to or acquiring a business
- When a fraud, misappropriation or irregularity is suspected
- When fund flows need to be traced across accounts or entities
- When financial analysis is required for a dispute
- When a valuation of shares or a business is needed
Scope of work
Transaction due diligence
- Financial due diligence
- Tax due diligence
- Business risk review
Compliance review
- Review of regulatory, tax and accounting compliance
- Review of legal compliance in coordination with the client's legal advisers
Forensic investigation
- Fraud investigation
- Forensic accounting
- Suspicious transaction review
- Fund-flow analysis
Evidence and litigation support
- Evidence-based financial analysis
- Litigation support
- Dispute-related documentation
Control assessment
- Internal control review
- Process gap analysis
- Fraud risk assessment
Valuation support
- Valuation support for shares and businesses
- Valuation inputs for transactions and fund-raising
Terms explained
For readers less familiar with Indian tax and regulatory terminology.
- Financial due diligence
- An examination of a business's financial information to identify risks and issues relevant to a transaction.
- Forensic accounting
- The application of accounting and investigative techniques to establish facts for management, regulators or courts.
- Registered Valuer
- A valuer registered with the Insolvency and Bankruptcy Board of India. Certain valuations under the Companies Act, 2013 must be performed by a Registered Valuer.
Scope and limitations
- Where a statute requires a valuation by a Registered Valuer or another specified professional, that requirement is identified when the scope is agreed.
- Findings depend on the records and access made available. Determinations of fraud or liability are made by the appropriate authorities or courts.