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    Due Diligence Services

    Harshul Mangal & Associates provides thorough Due Diligence services to support transactions, investments, and risk mitigation. Our multidisciplinary team (finance, legal, tax, operations) works to uncover risks, verify assumptions, and deliver insights that help clients make decisions with confidence—whether for mergers, fund investment, debt restructuring, regulatory compliance, or portfolio acquisition.

    Why Choose Harshul Mangal & Associates

    • Broad expertise across financial, legal, tax and operational domains
    • Experience with portfolio transactions and sales of stressed or non-performing assets
    • Understanding of regulatory framework (existing and upcoming) including RBI’s draft directions on securitisation of stressed assets
    • Transparent methodology, defensible assumptions, well-documented findings
    • Client-centric, timely delivery even under tight time constraints

    Types of Due Diligence We Provide

    We cover multiple dimensions, tailored as per engagement scope:

    Type What It Covers
    Financial Due Diligence Review of past financial statements, cash flows, quality of earnings, working capital, assets & liabilities, loan repayment history.
    Legal & Regulatory Due Diligence Contract review, title or collateral documentation, pending litigations, compliance with applicable statutes, enforceability of security.
    Tax Due Diligence Review of historical compliance, exposure to tax liabilities, tax structure, indirect & direct tax issues, transfer pricing.
    Operational / Servicing Due Diligence Assessment of recovery operations, servicing infrastructure, borrower profiles, collateral realization, data quality.
    Commercial / Market Due Diligence Industry & sector trends, market competitiveness, customer base & demand, macroeconomic risk.
    Technology / Data / IP Due Diligence Integrity of borrower & collateral data, intellectual property checks, systems used in servicing/monitoring, cybersecurity risks.

    Methodology & How We Work

    Our due diligence process is collaborative, detailed, and adapted to the nature of the assets:
    1. Scope & Planning
      Define purposes, timeline, data access, confidentiality, types of diligence needed.
    2. Document & Data Collection
      Collect financials, loan books, collateral documentation, borrower history, litigation status, tax records, servicing data.
    3. Data Validation & Analysis
      Verify borrower performance, loan classification, collateral value, any defaults or fraud flags.
    4. Valuation & Scenario Modelling
      Build cash-flow models, estimate recoveries, test sensitivity to changes in recoveries, timing, collateral depreciation.
    5. Legal & Regulatory Review
      Check enforceability of contracts and security, compliance with relevant laws & guidelines (for example, upcoming RBI draft directions on securitisation of stressed assets).
    6. Draft Reporting & Review
      Present preliminary findings, risk issues, valuation estimates, recommend mitigants. Allow client feedback / questions, refine as needed.
    7. Final Report & Advisory Support
      Deliver final due diligence report with all findings, support for negotiations, creation of representations / warranties, and use in transaction documentation.

    When & Why You Need Due Diligence

    You should engage due diligence when:
    • Considering M&A, acquisitions, divestments
    • Evaluating fundraising / private equity / venture capital investments
    • Entering joint ventures or strategic partnerships
    • Assessing high-value vendor / supplier contracts
    • Preparing for debt financing
    • Evaluating portfolio purchases, including stressed or non-performing loan pools sold to Asset Reconstruction Companies (ARCs)
    • Responding to regulatory, tax, or audit requirements

    Deliverables

    When you engage Harshul Mangal & Associates for Due Diligence, you will receive:
    • Detailed Due Diligence Report with executive summary
    • Analysis of key risks and issues, including financial, legal, operational, tax risks
    • Valuation estimates and sensitivity/scenario analysis
    • Documentation review summary, including any deficiencies or gaps
    • Assessment of collection / recovery & servicing infrastructure
    • Recommendations to mitigate identified risks
    • Support in negotiation, structuring, and documentation of transaction

    Inclusion of Pool Due Diligence for Sale of Stressed Loan Pools to ARCs

    When your due diligence involves a transaction for sale of stressed loan pools to ARCs, our process naturally incorporates those elements required by regulatory, valuation, and recovery perspectives. Some of the common elements we address in such cases:

    ✔ Review of pool composition, including classification of loans (performing / non-performing), eligibility under regulatory guidelines (e.g. whether a high percentage of the pool is NPAs).

    ✔ Analysis of historical repayment / default performance, collateral security, enforceability, and collections / recovery history.

    ✔ Valuation modelling for recoverable cash flows under different scenarios (base / optimistic / pessimistic).

    ✔ Legal / documentation checks (loan agreements, collateral, assignment provisions, lien / security interest).

    ✔ Operational & servicing capability: who services the assets, how recoveries are managed, expected timelines.

    ✔ Risk exposure: credit risk, legal risk, valuation risk, timing risk.

    ✔ Support for parties in negotiation: setting expectations of price, structuring of warranties or indemnities.

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