1. - Abhijit Sanzgiri

2. Meaning Due Diligence – Synonymous with background check – to ensure that there are no hidden skeletons in the closet – process by which confidential legal & financial information is exchanged, reviewed & appraised by parties to the transaction. This is done prior to the transaction to ensure a no surprise situation later on. Common sense coupled with a reasonable degree of skepticism – Investigative process – SWOT analysis – purpose is to make an informed decision - confirm that there are no black holes.

3. RBI Circular The RBI vide circular dated September 19 th 2008 / December 8 th 2008 / February 10 th 2009 – advised all scheduled commercial Banks to obtain regular certification on a half yearly basis (Diligence Report) by a professional, preferably a Company Secretary, regarding compliance by the Borrowing Company of the various statutory provisions that are in vogue. The same is done to inculcate a strong foundation of good governance culture among borrowing corporate and correspondingly enhance the comfort level of banks by reducing the information asymmetry prevailing currently.

4. The RBI Circular covers matters like - Details of directors Shareholding pattern Alteration in Articles / Memorandum if any Related party transactions Defaults in Borrowings Details of Forex exposure Risk mitigation through insurance cover in respect of all assets payment of statutory dues especially PF Compliance with loan sanction terms Other compliances Proper utilization and end use of funds Compliance with mandatory accounting standards Compliance with various clauses of the listing agreement in case of listed companies