Legal Munshi

Due Diligence


Due Diligence is a process of reviewing, auiditing, examining and documenting legal, financial, and compliance aspects of the company.

Get due diligence report before your deal with our detailed study done by our experts to avoid discripancies later.

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Overview of Due Diligence

Due Diligence is a process of reviewing, auiditing, examining and documenting legal, financial, and compliance aspects of the company. It is an in-depth research and study of a possible investment to compose surety for the mentioned numbers are correct and other fiscal data before any agreement.

What is the due diligence of a company?

Due Diligence is generally conducted by the investors to check for compliances followed by the company and factual, background, legal, and accounting checks. This takes place before any business sale, bank loan funding, equity investments, etc. Due diligence is a process in which the legal, financial, and compliance aspects of the company are reviewed and documented. It involves examining all the material facts of a deal or a contract before a legal contract is signed by both parties. Due Diligence is perform both by seller as well as buyers. This is done to be safe and avoid any discripancies.

When Due Diligence is required?

  • Mergers & Acquisitions:
    Due diligence is done by both the seller and the buyer. While the buyer looks into the financials, litigation, patents, and a whole range of relevant information, the seller concentrates on the experience of the buyer, the financial abilities to complete the transaction, and the ability to fulfil responsibilities taken.
  • Joint Vntures & Collaborations:
    During joint venture deals, the reliability of the company is a subject of concern. Assuming the other company's stand including the adequacy of supplies at their end.
  • Partnership :
    Due diligence is done for necessary alliances, necessary connections, business combinations, and such other alliances.

Types of Due Diligence

  1. Business Due Diligence

    Business Due Diligence looks into the quality and business prospects of an investment along with the parties involved therein.

  2. Legal Due Diligence

    Legal Due Diligence looks into the legal issues,aspects and regulatory aspects involved in intra-corporate and inter-corporate transactions.

  3. Financials Due Diligence

    Financials Due Diligence validates financial, operational, and commercial assumptions taken by the company along with a complete review of audit practices, accounting policies, internal controls, and tax compliances of the target company.

  4. People Due Diligence

  5. Environmental Due Diligence

For further queries kindly refer our FAQ section

Due Diligence Report

The findings obtained from the process of due diligence are summarized and documented in a report termed as the due diligence report. The information collected during this process is essential for decision making that needs to be announced. The Due Diligence report helps in making further company growth monetary and others.

Important aspects of a due diligence report

  • Monetary Aspect
  • Personnel Aspects
  • Viability
  • Environmental Aspects
  • Technological Aspects
  • Liabilities

Benefits of Due Diligence

Ownership :

  Analysis of who runs the Company.


  A contrastive analysis Company and market.

Balance Sheet Review :

  Interpreting the debt-to-equity ratio.


  Checking for any on-going risks and future threats.

Business Competitors:

  Competitors analysis and research.

Revenue Margin :

  Recent trends in figure raise and fall.

Capital history:

  Company dealing history and probabilities.


  To maximize the profit for the future.

Documents Required For Due Diligence

Individual Documents (Any 2) Other Document
Notices, Attendance Sheets & Board Meeting Minutes Tax certifications, Environmental audits/license and permits
Incorporation Certiicate, MOA, AOA, Shareholding composition Charter documents of the company, Intellectual Property
Notices, Attendance Sheets & General Meeting Minutes Statutory declarations, Property records, Service bills, Biographical data
Statutory Registers Financial Summary, IT Returns, Bank Report, Operational documents
Labor disputes(if any), Employment/loan contracts, Employee related documents Legal Agreements executed by the Company
RBI Related documents Affidavit declaring intention to become partner

For further queries kindly refer our FAQ section

Stages For Due Diligence through Legal Munshi

Img Stage 1.

Assessment of MCA Documents :

The information and documents gathered in this step include Company Information, Director Information, Charges Registered, Documents etc. Check the document checklist here

Img Stage 2.

Assessment of Articles of association:

In addition to the above, the financial information of the company and other filings with the MCA. Check the document checklist here

Img Stage 3.

Administration and Share Ownership :

the statutory registers of a company must be reviewed to obtain and validate the information about the directorship and the shareholding.Assessment of Book of Accounts and Financial Statements Assessment of Taxation Aspects,Assessment of Legal Aspects,Assessment of Operational Aspects,Assessment of Statutory Registers of Company etc.

Img Stage 4.

Due Diligence Aspects :

Analyse the Capitalization, Resources Acquisition, and Margin followed with Rivals Comparative Study, Valuation Multiples.

Img Stage 5.

Due Diligence :

History of Stock Costing, Stock Suspension, Examine Long and Short-term Risks.

Img Stage 6.

Due Diligence Surveys :

Includes Questionnaire, Reliable Data Room, Interviews with Beneficiary Management, Internal and External Public Registers.

This may change based on types of Due Diligence and regulation changes by goverment.

Procedure for Due Diligience with Legal Munshi

Step 1 : Complete Our Simple Online form

You have to provide the details in the form.

Step 2 : Expert Guidance

Once you have provided the details, our expert will guide you with the all the documents required for Due Diligence.

Step 3 : Filing

After submission and upon successful verification of all the required documents, one of our experts will carry the necessary steps for due diligence.

Step 4 : Congratulations!!!

Once the Report is done we will inform you and provide the necessary documents.

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FAQs on Due Diligence

What are the important points in Due Diligence?

The important points are Decisive Rationale, Risk Reduction, and Post-Diligence.