Charul bhandariCharul bhandari asked 10 months ago
1 Answers
RaviRavi Staff answered 10 months ago

we give shortcut to remember types of due diligence and then once you remember types of due diligence you can remember points of report from following analogy
 
Contents of a Due Diligence Report:
Briefly, the contents of a due diligence report can be discussed under:
(Start of the Report)
_ Terms of reference and scope of verification.
_ Objective of due diligence.
_ Brief history of the company including shareholding pattern.
(Legal DD Related)
_ Assessment of possible liabilities on account of litigation and legal proceedings against the company and suggestion on ways and means including affidavits, indemnities, to be executed to cover unforeseen and undetected contingent liabilities.
_ Status of franchises, license and patents.
(Operational / Commercial DD Related)
_ Assessment of operating results.
¬(Environment DD Related)
_Assessment on Environment Related Policies
(Personnel DD Related)
_ Assessment of Management Structure.
(Financial DD Related)
_Assessment of valuation of assets including comments on properties, terms of leases, lien and encumbrances including status of charges, liens, mortgages, assets and properties of the company.
_ Assessment of financial liabilities with special emphasis on Interlocking investments and financial obligations with group/associates companies, amounts receivables subject to litigation, any other likely liability which is not provided for in the books of account.
_ Assessment of net worth.
(TAX DD Related)
_ Assessment of taxation and statutory liabilities.
(IT DD Related)
_Assessment of Information Technology
(Conclusion Related)
_ Suggestions on various aspects to be taken care of before and after the proposed merger / acquisition.
_ Finally, an executive summary may be prepared highlighting the significant areas.