Who it’s for
| You are | Typical question | Usual scope |
|---|---|---|
| VC / PE fund investing in an Indian startup | Are the numbers real and are past share issues clean? | Financial + tax + FEMA + cap table |
| Foreign company acquiring an Indian business | What liabilities come with it, and what should the SPA cover? | Full financial, tax, FEMA, corporate and payroll |
| JV partner or distributor | Is this company what it says it is? | Company verification + financial review |
| Lender or procurement team | Can this supplier perform and pay? | Verification + filed financials + GST filing record |
What we check
- Financial: quality of earnings, revenue recognition, cash vs book profit, working capital, related-party transactions, debt and off-balance-sheet items, and how the Indian accounts map to your GAAP.
- Tax: income-tax assessments and open demands, TDS defaults, GST reconciliations (sales returns vs tax paid vs input credit), transfer pricing and pending litigation.
- FEMA / RBI: every past foreign investment reported (FC-GPR, FC-TRS), pricing-guideline compliance, ODI, ECB, the FLA return, sectoral caps and the beneficial-ownership position under Press Note 3.
- Corporate records: share-capital history, MCA filings, charges on assets, director KYC and board approvals — matched to the cap table.
- Payroll and labour: PF, ESI, gratuity and contractor arrangements.
- SPA input: findings turned into specific indemnities, conditions precedent and price adjustments for your lawyers. Checklist: due diligence checklist for Indian companies.
Red flags we find most often in Indian targets
- Share allotments to foreign investors reported late — or not at all — and no valuation certificate on file.
- GST input credit claimed that suppliers never reported, and sales in the books that don’t match GST returns.
- Cash-heavy revenue or expenses routed through related parties.
- Income-tax demands sitting unanswered on the e-filing portal.
- Assets pledged to lenders (charges on MCA) that the management deck doesn’t mention.
- Key staff engaged as “consultants” to avoid PF and payroll tax.
How it works
01
Scope & NDA
We agree the questions that matter for your deal and a fixed scope, then send a focused document request list.
02
Review
Data-room review, public-record checks and management calls. Material issues are flagged to you as soon as we find them.
03
Report
A red-flag report with quantified exposures, and drafting points for the SPA and closing conditions.
How we work with clients abroad
- Fully remote: engagement letter and NDA by e-signature, data through your virtual data room or a shared drive, calls on your time zone (US mornings, Europe and Gulf afternoons, Japan and Singapore mornings IST).
- In English, in writing: every finding is referenced to a document or a public record, so your board, lawyers or auditors can rely on it.
- On the ground when needed: offices in Ahmedabad, Mumbai, Bengaluru, Rajkot and Dubai for site visits, bank meetings and management interviews.
- Clear scope: CA work — accounting, tax, FEMA and corporate filings. Legal opinions come from your lawyers; we work alongside them.
Frequently asked questions
Can you do due diligence on an Indian company without travelling to India?
Yes. Most of the work — data-room review, public records on MCA, GST and the income-tax portal, and management calls — is done remotely. We arrange site visits through our Indian offices where a deal needs them.
What does financial due diligence in India cover?
Typically quality of earnings, revenue and cash, working capital, debt and related-party transactions, plus tax exposures, GST reconciliations and — for foreign investors — whether past foreign investment was reported and priced correctly under FEMA.
Do you provide legal due diligence?
We cover financial, tax, FEMA and corporate-filing due diligence as Chartered Accountants. Legal opinions on contracts, title and litigation come from your lawyers; we coordinate with them so the reports fit together.
How long does due diligence on an Indian company take?
It depends on the size of the company and how quickly data arrives. We agree the timetable at the start and flag material issues as we find them rather than waiting for the final report.