Due Diligence & Compliance Audit

In today’s competitive and regulated business world, investors, lenders, and regulators demand transparency. Before making investments, acquisitions, or partnerships, it is critical to ensure that the company is legally compliant, financially sound, and risk-free.

At NEXGENCA, we provide comprehensive Due Diligence & Compliance Audit services that give stakeholders a clear picture of a company’s health and help businesses stay legally compliant.

What is Due Diligence?

Due Diligence is a detailed investigation of a company’s legal, financial, tax, and compliance records before:

• Investment (by VCs, PE, Angel Investors)

• Mergers & Acquisitions (M&A)

• Bank Loan or Debt Funding

• Strategic Partnerships & Joint Ventures

It ensures that there are no hidden liabilities, compliance issues, or risks that could affect the business.

What is a Compliance Audit?

Compliance Audit is a structured review of whether a business has complied with all the applicable:

• Company Law (MCA/ROC compliances)

• Tax Laws (Income Tax, GST, TDS, etc.)

• Labour Laws (PF, ESI, Professional Tax, Shops & Establishments Act)

• Industry-Specific Laws & Licensing

This helps companies avoid penalties, litigation, and reputational damage.

NEXGENCA’s Due Diligence & Compliance Audit Services

1. Financial Due Diligence

• Verification of financial statements

• Review of debts, liabilities, and contingent risks

• Analysis of profitability, revenue streams, and expenses

• Working capital and cash flow review

2. Legal Due Diligence

• Verification of incorporation documents

• Review of shareholding pattern, MoA, AoA

• Checking contracts, agreements, and licenses

• Verification of litigation, disputes, and IPRs

3. Tax & Regulatory Due Diligence

• Direct Tax compliance (Income Tax, TDS, Advance Tax)

• Indirect Tax compliance (GST, Customs, etc.)

• Pending assessments, appeals, or disputes

• RBI, FEMA, and sectoral compliance (for foreign investments)

4. Secretarial & MCA Compliance Audit

• Annual filings with ROC

• Board Meetings, AGM, and statutory registers

• Filing of INC-20A, DIR-3 KYC, DPT-3, Auditor Appointment, etc.

• Changes in directors, shareholding, and registered office

5. Labour Law Compliance Audit

• PF & ESI registration and returns

• Professional Tax, Labour Welfare Fund

• Shops & Establishment Act compliance

• Employee contracts & payroll compliances

Why is Due Diligence & Compliance Audit Important?

• Builds investor and lender confidence

• Identifies hidden risks before funding/M&A

• Prevents heavy penalties and litigation

• Strengthens corporate governance

• Ensures smooth business operations without compliance hurdles

NEXGENCA’s Audit Process

1. Initial Consultation – Understanding client requirements

2. Data Collection – Gathering company records, financials, filings

3. Detailed Review – Legal, tax, financial, and secretarial check

4. Risk Assessment – Identify gaps and non-compliances

5. Report Preparation – Detailed Due Diligence / Compliance Audit report

6. Action Plan – Recommendations & corrective measures

Why Choose NEXGENCA?

• Expertise in MCA, Tax, Labour, and Financial compliance

• Tailored Due Diligence for startups, SMEs, and corporates

• Strong experience in fundraising and investor coordination

• End-to-end support from audit to compliance rectification