Key takeaways
- Every report starts with a plain executive summary and a clear conclusion.
- Findings reference the public records and documents relied on.
- Red flags come with practical recommendations for your agreement.
Illustrative only. “Example Components Pvt Ltd” is a fictional company; the findings show the style and depth of a report, not a real engagement.
1. Executive summary
Example: “Example Components Pvt Ltd is an active private company incorporated in 2014 with GST and import–export registrations in Gujarat. Filed revenue for the last year was materially lower than the figure presented to you. We found two red flags and three points to address in the distribution agreement. Overall: proceed with conditions.”
2. Identity and registrations
- Company master data, registered office, incorporation date and status.
- GST registration and return-filing record; import–export code.
- Bank-account match with the legal entity.
3. Financial review
- Three-year summary of revenue, margins, debt and receivables from filed accounts.
- Comparison with management’s figures; related-party balances; charges on assets.
4. Tax and regulatory
- Income-tax demands, TDS defaults and GST notices visible to us.
- FEMA filings for any past foreign investment; sector licences and registrations.
5. People
- Directors and promoters, their other companies, regulatory and insolvency records, sanctions and adverse media — see background checks.
6. Site visit
- Premises, activity, capacity, staff — with dated photographs (with permission).
7. Red flags and recommendations
| Finding (illustrative) | Risk | Recommendation |
|---|---|---|
| Filed revenue below presented revenue | High | Request audited accounts and GST returns; base credit limits on filed figures |
| Charge on assets in favour of a bank not disclosed | Medium | Ask for loan details; add a warranty on borrowings |
| A director linked to two struck-off companies | Medium | Ask for an explanation; add anti-bribery and audit clauses |
8. Appendix
- List of records reviewed with dates and references; scope limitations; data-protection note.
Commission a report: partner due diligence · investment due diligence · questions: due diligence FAQ.
Sources
Frequently asked questions
What does a due diligence report on an Indian company include?
Typically an executive summary, identity and registrations, a financial review from filed accounts, tax and regulatory position, people checks, a site visit, red flags with recommendations, and an appendix of records reviewed.
Is the sample report a real client report?
No — it is illustrative, using a fictional company, to show the structure and depth of the report you receive.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.