Red Flag Due Diligence Service

Key Objectives

• Uncover any undisclosed liabilities, legal issues, or regulatory non-compliance
• Determine the shareholding/ownership structure of the organisation
• Verify the accuracy of the target company's financial statements
• Understand the target company's competitive position and market standing
• Analyse the target company's management and key personnel

Conducting due diligence has become an indispensable practice for organisations aiming to mitigate risks and make informed decisions. One crucial aspect of due diligence is red flag due diligence, which focuses on identifying potential warning signs or indicators of risks associated with business partners or investment opportunities.

The red flag review is intended to act as an initial screening tool for clients. The review identifies any aspect of the asset or transaction that may prevent the client from moving forward or any aspect that has significant risk with potentially serious consequences.

Red flags can manifest in various forms and may differ based on the nature of the partnership or investment. However, some common red flags include information on – the shareholding/ownership structure of an organisation, key personnel, litigations, market reputation, regulatory non-compliance, adverse media, wilful defaults, etc.

By proactively uncovering these red flags, organisations can safeguard their interests, protect their reputation and avoid costly pitfalls.

Key Service Offerings

• Taxpayer (PAN & GSTIN) Verification
• SDN, Blacklist, Blocked Person Screening
• PEP and Sanctions Screening
• Auditor Remarks and Credit Defaults
• Financial and Corruption Screening

Why Netrika?

With our meticulous approach, and comprehensive insights, we uncover any red flags or warning signs that could impact the decision-making process.

Our robust Red Flag Due Diligence service ensures a thorough evaluation process, enabling organisations to forge partnerships that align with their values, goals, and long-term success.