Complete Due Diligence Guide

Review the real risks before investment, acquisition, loan or partnership decisions are finalised.

Due diligence helps identify hidden liabilities, tax exposure, compliance gaps, inaccurate financials, contractual risks, litigation issues and corporate record problems before a business decision becomes expensive.

Due Diligence Readiness Check

What we review before starting your due diligence

Due diligence should match your transaction objective, entity structure, shareholding, financials, tax records, contracts, assets, liabilities, borrowings, litigation and compliance history.

Corporate records, ROC filings, shareholding, director history and statutory registers review.
Financial statements, bank records, debt, receivables, payables and related-party transactions check.
GST, TDS, income tax, payroll, PF/ESI and other compliance risk mapping.
Contracts, licences, litigation, contingent liabilities and risk summary reporting.
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    🔒 Confidential✓ No hidden fees✓ No obligation
    Why Due Diligence Matters

    Make business decisions with verified records, not assumptions.

    Due diligence is essential before investment, acquisition, merger, funding, loan, franchise, vendor onboarding or strategic partnership. It helps verify facts, uncover hidden liabilities and negotiate better terms with stronger risk awareness.

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    Hidden Risk Identification

    Identify tax exposure, legal disputes, ROC defaults, accounting gaps and undisclosed liabilities.

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    Corporate Record Review

    Check incorporation, shareholding, directors, statutory registers, ROC filings and approvals.

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    Financial Review

    Review balance sheet, P&L, cash flow, debt, receivables, payables and accounting quality.

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    Tax & GST Checks

    Review GST, TDS, income tax, notices, outstanding dues and compliance positions.

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    Legal & Contract Review

    Check major agreements, licences, litigation, obligations and transaction restrictions.

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    Deal-Ready Risk Report

    Get a practical risk summary to support negotiation, valuation and decision-making.

    Records Required

    Records needed for due diligence services.

    Due diligence quality depends on document completeness. We help organise records across corporate, legal, financial, tax, secretarial, payroll, contracts and litigation areas.

    Corporate & Legal Records

    • Certificate of incorporation, MOA/AOA or LLP agreement
    • Shareholding, cap table and ownership details
    • Board/shareholder resolutions and statutory registers
    • Major contracts, licences and registrations
    • Litigation, notices and dispute records

    Financial & Banking Records

    • Audited financial statements and trial balances
    • Bank statements and loan documents
    • Receivable and payable ageing
    • Fixed asset, inventory and debt details
    • Related-party and major transaction details

    Tax & Compliance Records

    • Income tax returns and assessment notices
    • GST returns, ledgers and reconciliation data
    • TDS returns, challans and deduction details
    • PF/ESI/PT/payroll compliance records
    • ROC filing history and compliance documents
    5-Step Process

    How CompanyJi manages due diligence.

    We focus on scope clarity, document review, issue identification, risk grading and practical reporting so the decision-maker gets clear, usable findings.

    01

    Scope Setup

    We understand transaction purpose, entity type, timeline, data room status and priority risk areas.

    02

    Record Collection

    We collect corporate, financial, tax, legal, compliance, payroll and contract records.

    03

    Detailed Review

    We review filings, ledgers, contracts, taxes, notices, liabilities and key business records.

    04

    Risk Mapping

    We flag issues, quantify exposure where possible and classify risks by priority.

    05

    Report & Discussion

    We share findings, pending queries, red flags and decision-support observations.

    Compare Before Choosing

    Due Diligence vs Audit vs Valuation vs Compliance Review.

    Each service has a different purpose. Due diligence identifies transaction risk, audit verifies financial statements, valuation estimates business value and compliance review checks statutory filing status.

    Service
    Purpose
    Main Benefit
    Key Caution
    Due Diligence
    Transaction risk review
    Identifies hidden liabilities and red flags
    Depends on scope and document access
    Audit
    Financial statement verification
    Assurance on books and reporting
    Not always transaction-risk focused
    Valuation
    Business value estimation
    Supports price and equity decisions
    Needs reliable financial and business data
    Compliance Review
    Statutory filing check
    Identifies ROC, GST, tax and labour gaps
    May not cover contracts or deal terms
    Everything you need to know

    Due Diligence Services FAQs

    Category-wise answers covering due diligence basics, scope, documents, process, financial checks, tax and legal risks, reporting, controls and common transaction mistakes.

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    Basics

    Practical answers for due diligence.

    What is due diligence?+

    Due diligence is a structured review of business, legal, financial, tax and compliance records before investment, acquisition, funding or partnership decisions.

    When is due diligence required?+

    It is commonly required before business purchase, investment, merger, loan, vendor onboarding, franchise, partnership or major transaction.

    Is due diligence the same as audit?+

    No. Audit verifies financial statements, while due diligence focuses on transaction risk, liabilities, compliance gaps and decision-support findings.

    Who should get due diligence done?+

    Investors, acquirers, founders, lenders, partners, buyers and management teams should consider due diligence before relying on business claims.

    Can CompanyJi manage due diligence?+

    Yes. CompanyJi can review records, identify red flags, prepare issue summaries and support decision-making.

    Scope

    What due diligence includes.

    What is included in due diligence services?+

    Scope can include corporate records, financials, tax, GST, ROC filings, contracts, litigation, payroll compliance and business risk review.

    Can due diligence be limited in scope?+

    Yes. Scope can be limited to financial, tax, legal, secretarial, compliance or specific transaction areas.

    Do you review ROC compliance?+

    Yes. ROC filings, annual returns, director details, charges, share capital and statutory records can be reviewed.

    Do you review contracts?+

    Major contracts, obligations, termination clauses, restrictions and liability exposure can be reviewed depending on scope.

    Can due diligence support negotiation?+

    Yes. Findings may support price adjustment, indemnity clauses, condition precedents and risk allocation.

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    Records

    Documents needed for due diligence.

    What documents are required for due diligence?+

    Corporate documents, financial statements, bank records, tax returns, GST data, contracts, licences, litigation records and compliance filings are commonly required.

    Are audited financials required?+

    Audited financials are useful, but management accounts, trial balance and ledgers may also be reviewed where audit is not available.

    Are bank statements required?+

    Yes. Bank statements help verify cash flow, receipts, payments, loans, related-party entries and unusual transactions.

    Are contracts required?+

    Major customer, vendor, lease, loan, employment, franchise, IP and service contracts should be shared where relevant.

    Can due diligence start if data is incomplete?+

    Yes, but missing records should be listed as limitations and may affect conclusion quality.

    Process

    How due diligence is managed.

    How does due diligence process work?+

    The process generally includes scope setting, document collection, review, query raising, issue identification, risk grading and final reporting.

    How long does due diligence take?+

    Timeline depends on entity size, scope, document quality, years under review and speed of query resolution.

    Will you raise queries during review?+

    Yes. Queries are usually raised for missing documents, unclear transactions, mismatch, risk items and management explanations.

    Will I get a due diligence report?+

    Yes. A due diligence report or summary can be prepared with findings, risk areas, pending items and recommended actions.

    Can CompanyJi review only one area?+

    Yes. You can request only financial, tax, ROC, legal, GST or payroll compliance due diligence depending on need.

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    Tax & GST

    Tax exposure and compliance checks.

    Does due diligence include GST review?+

    Yes. GST returns, ITC, output liability, notices, reconciliations and mismatches can be reviewed.

    Does due diligence include income tax review?+

    Income tax returns, assessments, notices, outstanding demands and tax positions can be reviewed as part of scope.

    Can TDS defaults be checked?+

    Yes. TDS deductions, challans, returns, short deduction and late filing exposure can be checked.

    Can tax notices affect a transaction?+

    Yes. Pending tax notices or demands may affect valuation, indemnity, escrow or closing conditions.

    Can GST mismatch become a red flag?+

    Yes. GST mismatches, unpaid tax, excess ITC or non-filing can become transaction red flags.

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    Financial

    Financial statement and accounting review.

    What financial checks are done in due diligence?+

    Financial checks may include revenue, expenses, margins, receivables, payables, loans, related-party transactions, assets and cash flow review.

    Can receivables be reviewed?+

    Yes. Debtor ageing, doubtful debts, customer concentration and collectability can be reviewed.

    Can debt and loans be checked?+

    Yes. Loan agreements, security, charges, repayment terms and undisclosed borrowings can be checked.

    Can related-party transactions be reviewed?+

    Yes. Related-party balances, payments, loans, sales, purchases and approvals can be reviewed for risk.

    Can poor books affect valuation?+

    Yes. Unreliable books can affect valuation, deal confidence, warranties and closing conditions.

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    Legal

    Legal, contracts and corporate risk.

    Does due diligence include legal review?+

    Legal review can include contracts, litigation, licences, corporate approvals, ownership, charges and regulatory restrictions.

    Can litigation be checked?+

    Yes. Pending cases, notices, claims, disputes and contingent liabilities can be reviewed where records are available.

    Can shareholding issues be identified?+

    Yes. Shareholding mismatch, missing approvals, transfer issues, cap table gaps and shareholder rights can be reviewed.

    Can contract restrictions affect a deal?+

    Yes. Change of control, non-compete, termination, assignment and exclusivity clauses may affect a transaction.

    Can licences and registrations be reviewed?+

    Yes. Business licences, registrations, renewals and regulatory approvals can be reviewed as part of scope.

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    Reporting

    Findings, red flags and decision support.

    What does a due diligence report include?+

    It can include scope, documents reviewed, findings, red flags, tax exposure, compliance gaps, pending items and recommended actions.

    Will issues be classified by risk level?+

    Yes. Issues can be categorised as high, medium or low risk depending on impact and transaction relevance.

    Can findings support SPA clauses?+

    Yes. Findings can support warranties, indemnities, conditions precedent, escrows and disclosure schedules.

    Will pending documents be listed?+

    Yes. Missing or pending documents can be listed as open items or limitations.

    Can due diligence be confidential?+

    Yes. Due diligence is usually handled confidentially because sensitive business, tax and legal records are reviewed.

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    Mistakes

    Common due diligence mistakes.

    What is the biggest due diligence mistake?+

    The biggest mistake is relying only on management claims without checking documents, filings, financials, tax records and contracts.

    Can incomplete data mislead the review?+

    Yes. Incomplete records can hide liabilities and should be clearly flagged as a limitation.

    Is it risky to ignore tax records?+

    Yes. Tax demands, GST mismatch, TDS defaults and non-filing can create direct financial exposure.

    Can missing ROC filings affect a deal?+

    Yes. ROC defaults, charge issues, shareholding mismatch and director non-compliance can affect transaction confidence.

    Can poor due diligence affect negotiation?+

    Yes. Without proper findings, buyers or investors may miss price adjustment, indemnity and risk protection opportunities.

    Make your transaction risk-reviewed and decision-ready.

    Before investment, acquisition, funding, loan approval or partnership decisions create future liability, make sure corporate records, financials, tax filings, contracts, litigation, compliance and hidden risks are properly reviewed. CompanyJi helps you manage it cleanly.