Comprehensive
Due Diligence.
Mitigate risk and negotiate from a position of strength. Our multidisciplinary team of CAs, CSs, and Corporate Lawyers provide exhaustive 360-degree scrutiny of target companies before you invest or acquire.
The BharatFilings Advantage
Uncovering Hidden Risks
We dig beyond surface financials to find pending litigations, undisclosed contingent liabilities, and critical regulatory non-compliances.
Multidisciplinary Team
Our audits are conducted simultaneously by Chartered Accountants (Tax/Fin), Company Secretaries (MCA), and Legal Counsel (Contracts).
Secure Data Rooms
All confidential corporate data, cap tables, and IP assets are audited within a strictly controlled, 256-bit encrypted environment.
The 4 Pillars of Due Diligence
A successful merger, acquisition, or funding round depends on total transparency. We dissect the target company across these four critical verticals.
1. Financial Due Diligence
Verifying the true financial health of the target beyond the audited balance sheets.
- Normalization of EBITDA and quality of earnings analysis.
- Review of working capital trends, aged receivables, and bad debts.
- Verification of related party transactions and undisclosed off-balance-sheet debt.
2. Legal Due Diligence
Identifying pending litigations, flawed contracts, or intellectual property disputes.
- Deep review of vendor, client, and employment contracts (change of control clauses).
- IP Title check: Ensuring Trademarks, Patents, and Copyrights are fully owned by the company.
- Summary of ongoing or threatened litigations and tribunal cases.
3. Tax Due Diligence
Ensuring the company has no hidden direct or indirect tax liabilities waiting to explode.
- Review of Income Tax returns, pending assessments, and active demands u/s 143/148.
- Reconciliation of GST Input Tax Credit (ITC) to identify wrongly claimed credits.
- Verification of TDS deductions, deposits, and any Section 234E late filing defaults.
4. Statutory & HR Compliance
Confirming that the company complies with the MCA, RBI, and State Labor Laws.
- Auditing the Secretarial records (Minutes books, Statutory Registers, PAS-3 filings).
- Checking FDI compliance, FEMA rules, and FCGPR filings (if foreign investment exists).
- Verifying EPF, ESIC, Professional Tax, and POSH Act labor compliances.
How we execute the audit
We run a highly structured, objective, and secure investigation process, keeping both buy-side and sell-side stakeholders aligned.
NDA & Data Room
Non-Disclosure Agreements are signed, and the target company populates our secure virtual data room with requested files.
Scrutiny & Analysis
Our multidisciplinary teams of CAs, CSs, and lawyers independently analyze the data, looking for compliance gaps and risks.
Q&A Management
We raise formal queries (RFI) to the target's management to clarify discrepancies, missing documents, or complex transactions.
Comprehensive Report
We deliver a detailed final report, categorizing findings into 'Red Flags' (deal breakers) and 'Yellow Flags' (negotiation points).
Diligence Plans
Select the required audit scope. We'll schedule a completely confidential discovery call with a Lead Auditor. No payment required upfront.
Startup Compliance Audit
Ideal for Angel Investors assessing a Seed-stage startup, or Founders wanting to prep their own data room.
- Basic MCA Statutory Check
- Cap Table & ESOP Verification
- IP Ownership Check (Trademarks/Patents)
- Direct & Indirect Tax Filing Status
Comprehensive M&A Diligence
For PE/VC firms, or companies acquiring a business. A full 360-degree financial, tax, and legal scrub.
- Everything in Startup Audit
- Deep Financial & EBITDA Normalization
- Labor Law (PF/ESI) & Contract Review
- Exhaustive Risk Reporting Matrix
Data Room Requirements
The target company must provide access to a comprehensive repository of records. Typical documents required include:
Corporate Records
MOA, AOA, Board Minutes, and Statutory Registers.
Material Contracts
Vendor agreements, NDAs, employee contracts, leases.
Financial Data
Last 3 years audited financials and current trial balance.
Tax & Litigations
ITR copies, GST returns, and notices of any ongoing court cases.
Sell-Side Prep?
If you are a founder preparing to pitch to VCs or sell your company, we highly recommend executing a "Mock Due Diligence" on yourself first. This allows you to identify and fix critical compliance gaps (like missing MCA filings or flawed IP ownership) *before* the investor's legal team finds them.