Startup Movers

Importance Of Due Diligence

Transactions that undergo a due diligence process offer higher chances of success. Due diligence contributes to making informed decisions by enhancing the quality of information available to decision makers.

From a buyer’s perspective

Due diligence allows the buyer to feel more comfortable that his or her expectations regarding the transaction are correct. In mergers and acquisitions (M&A), purchasing a business without doing due diligence substantially increases the risk to the purchaser.

From a seller’s perspective

Due diligence is conducted to provide the purchaser with trust. However, due diligence may also benefit the seller, as going through the rigorous financial examination may, in fact, reveal that the fair market value of the seller is more than what was initially thought to be the case. Therefore, it is not uncommon for sellers to prepare due diligence reports themselves prior to potential transactions.

Costs of DUE Diligence

The costs of undergoing a due diligence process depend on the scope and duration of the effort, which depends heavily on the complexity of the target company. Costs associated with due diligence are an easily justifiable expense compared to the risks associated with failing to conduct due diligence.

TESTIMONIALS

Customer Experiences

Really happy with the professional way in which the work has been done (y). Worked with other CA’s previously, Startup movers were the best one- whom we worked with

Jani Pasha
CEO - Lokal App

Excellent service at affordable prices. They are very punctual and work really hard to get the job done.

Mr. Puranjay Singh
CEO - Mystery Monks

These guys are really good particularly their secretarial part. Very professional very prompt.

Nikhil
Cofounder - Finbox

Excellent!!…. Excellent!..
Startup Movers helped us with our company incorporation & re-correction was done quickly and everything that goes with it has done good.

Karishma
CEO - Cavaxion

The best part about working with StartUp Movers is that they understand the DNA of a startup very well, and are flexible in their approach. This makes them very compatible partners for any start-up.

Chetan Kapoor
Edulever

So far

Achievements

10 +

Years of Experience

1350 +

Startups Served

50 +

Excellent Team

3 +

Unicorns Produced

Frequently asked questions

Everything you need to know about the product and billing.

To Check & Review whether requisite necessary documents as called for are on record
To Check & Review whether the documents on record are correct and as per norms
To check & Review whether the company is able to maintain the standards of documentation as per desirable norms and practices

To Check & review the past financial statements with a view to make note of any shortcomings & check if the reporting is as per reporting standards & framework
To check & conduct a GP/NP Analysis for readers of the DD Report
To check & review on a sample basis the accuracy of sales reported, verification with statutory returns filed, books & sale bill verification
To check & review on a sample basis major voucher of expenditure, revenue & addition to major fixed assets
To review the auditors’ report and make note of any remarks/comments
To review the working capital positions and make relevant analysis required, including inventory verification on a sample basis, WIP in production

To Check & review the provisional unaudited provisional financial results and compare them with historical performance to make note of any gaps & major developments
To check & review the material transactions affecting overall business

To check whether the business activities are as per the main objects of LLP agreement
To Check & review whether the company has obtained the applicable business registrations, any renewals if pending
To Check & review whether following filings applicable to the company has been done or not:
1. Applicable ROC Filings –Annual or Per event wise
2. GST Return Filings – Returns & Tax Payments
3. Income Tax Filings –Returns & Tax Payments
4. TDS Return Filings –Returns & Tax Payments
5. PF Return Filings – Return Cum Tax Payments
6. ESI Return Filings – Return cum Tax Payments
To Check on sample basis the accuracy of Statutory return computationsTo Check & review any delays, interests, late fees and penalties in return filing/tax payment
To check the reporting in Tax Audit Report/MAT Report
To Check the management response and compliance of Auditor’s remarks & comments
To Check the assessment orders passed if any under Income Tax/ VAT/GST & make note of any contingent liabilities likely to have an impact
To check for pending litigations & exposures likely to have an impactTo Check the overall compliance of statutory framework with respect to required documentation & internal legal housekeeping for respective statutes

To check on sample basis the internal control policies\
To check on sample basis the debtor & vendor selection policy
To check on sample basis the propriety functional policy\
To check on sample the action policy on upkeep & safeguard of assets of the company

To check whether the business activity of the company with its MOA
To check the Company has taken all the declarations from its Directors under section 184 and 164 of Companies Act, 2013
To check if the company is maintaining its business as per regulation prescribed under AOA
Whether the company has its common seal or not as per its AOA
Whether the company issued share certificate to all its shareholders within the time prescribed under law
Validating company records with MCA filings
Validating the capital with Form SH-7 and PAS-3 filed to ROC
Checking online record of the company for RBI filing in case of foreign investor, if any and validating the pendency of the matter, if not approved by RBI
Checking of correctness of the annual forms filed to ROC, any delay or gaps in filings
Whether the company has followed the terms of the SHA/SSA executed with the previous investor
Whether the company has complied all the post-closing terms like issuance of share certificates, payment of stamp duty etc.
Whether the company is providing all material information to the investors as per SHA
Whether all major agreements having material effect on the company have been executed by appropriate authorities
Checking whether the Company is maintaining timely statutory registers or not as per Companies Act, 2013
Checking Board Meeting Minutes, whether secretarial standard has been followed while maintaining the minutes of meetings
Checking whether the details of shareholders of the company available at MCA is same with company records
Checking whether the Company has maintained employment agreement with his employees
Checking whether the Company has executed any ESOP or ESOS policy for its employees and if yes, whether the compliance for the same has been completed or not.

Checking whether the company has applied for any trademark or any other IPR
If applied, whether it has been registered or not and the reason for pendency, if any