Evolution of a Dream
The vision of our founding fathers began with a meeting of ....

Due Diligence, Rating & Quality Standardisation


The term "due diligence" is synonymous with "background check" and refers to the period during which investors make sure they have all the information they need to proceed with the transaction. Investors are focused on the business that they are seriously interested in investing. Following areas are covered during the due diligence.

  1. Management & Personnel. Review employees' skills, experience, wages and salaries, payroll procedures, and other relevant human resources issues.

  2. Financial operations. Verification of Organization’s books and records, accounting and bookkeeping methods, cash flows, both present and projected, quality of accounts receivables, debt and bank relations. Services and product pricing and its consistency with industry standards. Appraisals for all equipment and assets, reference to depreciation.

  3. Marketing & Business operations: Analyzing marketing and sales strategies. Operations with reference to location, management, customer relations, and any other areas specifically related to the operations.

    1. Governance Aspects: Governance is the process of decision-making and the process by which decisions are implemented. An analysis of governance focuses on the formal and informal actors involved in decision-making and implementing the decisions made and the formal and informal structures that have been set in place to arrive at and implement the decision.

    2. Managerial Factors: Social sector organizations should learn to optimize their internal operations and processes in the situation of limited resources; service companies come to conclusion that by reappraising their delivery process they can revolutionize and significantly improve their approach to manufacturing companies and their marketplace. The survival of commercial company depends on ability of the organization to focus and shape its operational resources to meet the expectations of its stakeholders: customers, employees and shareholders, expressed in organizational strategy. Irrespective of economic sectors the company operates in, the ability of operations management of this company to fulfill those above-mentioned tasks depends on their understanding that it is necessary to make trade-offs. They cannot avoid the situation of working under constraints and have to understand their capabilities and constraints to provide significant inputs into strategic decision-making process involving further resources of the organization.

    3.  Financial Performance

  1. Trend Analysis:

    1. Growth

    2. Staff Productivity

    3. Portfolio Quality

  1. Financial Review:

    1. Micro Finance Operations

      1. Background

      2. Micro Finance Policies

      3. Loan Products

      4. Insurance

      5. Credit Performance & asset quality

    2. Mobilisation and Application of funds

    3. Asset, Liability & Equity composition

    4. Profitability & Sustainability

    5. Credit Worthiness

  1. Governance:

    1. Board’s governance & Policy directives

    2. Managerial Adequacy & Supervisory Control

    3. Organisational structure & Administrative Control

  1. Conclusion:

    1. Strengths: Organisational, Managerial, Financial

    2. Weaknesses: Organisational, Managerial, Financial

    3. Suggested Measures on Quality Standardisation

  1. AUDIT:

  1. Internal Audit:

    1. Regular verification of HO & branch operations

    2. Surprise verification at branches

    3. Surprise verification at Credit delivery points

  • External Audit:

  • Annual Audit of Accounts

  • Program Implementation Audit