Pre-acquisition and vendor checks across Tamil Nadu and India

Due Diligence Services in India for Acquisitions and Vendors

Due diligence services in India check a company before you acquire it or invest in it, and a supplier before you start buying from it. Astral Business Consulting LLP, a Coimbatore-based management consulting and audit firm in Tamil Nadu, offers pre-acquisition due diligence on manufacturing companies and checks on suppliers, distributors and job workers. Stock, fixed assets, controls and links to connected parties can be tested on site and in the target's ERP data, through the computer, not around it.

Discuss a Due Diligence Review

Office block and gate of a manufacturing unit, the kind reviewed before an acquisition

Our Due Diligence Services for Deals and Supply Chains

Buyer-side and procurement-side checks for manufacturing companies, with each finding tied to a record or a site visit and reported to whoever commissioned the work.

Pre-Acquisition Due Diligence

Before a company acquires or invests in a manufacturing business, the review can test how purchases, sales, stock and connected parties really run at the target, with the firm's 1,500+ process risks and controls as the starting checklist.

See Investigation Work

Stock Verified Before Completion

The Cycle Count division can carry out a 100% count of the target's stock at plants, godowns and showrooms close to the agreed cut-off date and reconcile the result to the books before completion.

Explore Physical Stock Verification

Vendor Due Diligence Services

Before a large supplier or contractor is approved, its owners, links to your employees or promoters, registration status and billing history can be checked, and vendor-master access can be tested against the firm's information-systems controls library.

See Vendor Payment Checks

Third-Party Due Diligence for Job Workers

Distributors and job workers who hold your material can be checked for registration and standing, and a 100% physical verification of the stock they hold on your behalf can be matched to your records.

See Job-Work Audits

Fixed Assets Matched to the Register

Plant and machinery at the target are physically verified against its fixed asset register, and any asset that cannot be traced, stands idle or sits at another location is listed for the buyer's advisers.

See Fixed Asset Verification

Red Flags Taken to Investigation

When a check turns up something that does not reconcile, such as a supplier tied to an employee or stock that exists only in the books, the facts can be established through the firm's investigation work.

See Fraud Investigation
Electroplating job-work unit, the kind of supplier site visited during vendor due diligence

Our 5-Step Due Diligence Process

Purpose, scope and independence
The buyer's board, promoter or procurement head sets the purpose: one target in Tamil Nadu or elsewhere in India, or a list of suppliers. Scope, period and sites are agreed at the outset, and the reviewers' independence from the other side can be confirmed before work starts.

One request list, every gap logged
A single request list covers registrations, ledgers, purchase and sales registers, stock and fixed asset registers, major contracts and an extract of the ERP data. Anything the other side withholds or delays can be logged, because a gap in the records is a finding in its own right.

Records and connections tested
Purchases, sales and stock movements are tested against source documents. Vendor masters can be compared with employee and promoter records for shared addresses, phone numbers and bank accounts, while price history, credit notes and month-end billing are read for patterns that summary figures hide.

Site visits and physical checks
Plants, godowns and job-work locations are visited to see whether the operation matches the records. Where stock or plant and machinery matter to the decision, the Cycle Count division can count the stock and verify assets against the register, listing every difference by item and location.

Findings report for the decision
For the buyer or procurement head, the report can list every finding with its source document, a severity rating and the question it raises, so the board and its lawyers can decide what changes in the price, the agreement or the approval.

Choose by the report you need

Operational Due Diligence or Full Transaction Due Diligence?

This service suits a promoter-led or mid-size company buying into a manufacturing business, or approving suppliers, distributors and job workers, where the main risk sits in stock, plants, controls and connected parties. It does not replace an earnings analysis, tax structuring, legal due diligence or a valuation: chartered accountant and transaction advisory practices, law firms and valuers produce those reports. A large or cross-border deal usually needs several of them under one coordinating adviser, with the operational review as one stream. Astral Business Consulting fits where the decision turns on what is physically and procedurally there. Choose by the question your board needs answered.

Tea factory withering hall in Tamil Nadu, the kind of site checked in due diligence

Records and plants, both checked

Why Choose Astral Business Consulting for Due Diligence?

Counts by an in-house division

Stock and fixed asset counts are the work of the firm's own Cycle Count division, so verification at the target's plants, godowns and job workers comes from the same firm that reads the records.

ERP data read directly

Vendor masters, rate changes, credit notes and stock adjustments can be read from the ERP, so a connected supplier or edited rate shows in the data, not in a summary from the other side.

A written controls library

Each review starts from the firm's in-house library of process and information-systems risks and controls, so the checks follow a documented method rather than a list improvised for each deal.

Grounded in Tamil Nadu manufacturing

Based in Coimbatore, the team works with textile mills, foundries, engineering units, dairies and auto dealerships across Tamil Nadu, the same sectors its internal audit practice serves.

About Astral Business Consulting LLP

A Coimbatore-based management consulting and audit firm

Astral Business Consulting LLP is a Coimbatore-based management consulting and audit firm whose main line is internal, process and management audit for manufacturers across Western Tamil Nadu. The firm works through four divisions, with Integrated Audit and Cycle Count alongside Best Accountant and Consulting, and its corporate profile lists due diligence among its risk advisory services. The method follows COSO, supported by an in-house library that holds 1,500+ risks and controls for business processes and 2,500+ more covering information systems, and every audit is run through the computer, not around it. Its team mixes engineers, software experts and information-systems auditors with Chartered Accountants and Cost Accountants. Clients come from textile spinning, engineering and foundry work, dairy and FMCG, auto dealerships and jewellery retail. For sites beyond Tamil Nadu, Astral Business Consulting reports 40 associate offices in other parts of India.

  • 1,500+risks and controls for business processes
  • 2,500+risks and controls for information systems
  • 40associate offices across India, as the firm reports

Questions About Due Diligence in India

Who provides vendor and third-party due diligence services for companies?
Astral Business Consulting LLP, a Coimbatore-based management consulting and audit firm, checks suppliers, distributors and job workers for companies through its due diligence and investigation service. Other options are background verification agencies, business information bureaus and a company's own procurement or compliance team. Compare them on whether the check ends with documents and databases or also tests how the vendor actually deals with your company.

Who does due diligence on a company before we acquire it or invest in it?
For a manufacturing target, Astral Business Consulting LLP can cover the operational due diligence stream: stock, plants, controls and supplier links. Financial and tax matters usually go to accounting and deal advisory firms, title, contracts and litigation to law firms, and any valuation the Companies Act, 2013 requires to a valuer registered under that Act. The buyer commissions each specialist.

Are financial due diligence services the same as operational due diligence on a target?
No. Financial due diligence usually analyses how sustainable the reported earnings are, along with working capital, net debt and tax exposure, and is typically delivered by chartered accountant practices and transaction advisers. Operational due diligence asks whether the stock, assets, purchases and controls behind those figures exist and work as described. Ask the two advisers to agree who covers which area, so nothing falls between their reports.

Does vendor due diligence mean checking a supplier or a seller's own report?
Both uses exist. In procurement, the term means checking a supplier, distributor or contractor before or during the relationship. In a company sale, it can also mean a report that the seller commissions on its own business and shares with bidders. Ask any provider which of the two it means before you compare proposals, because the work and the reader differ.

How is the size of a due diligence review worked out?
By what has to be checked and where: for an acquisition, the plants and godowns, the months of records in scope, whether stock must be counted and how readily the seller grants ERP access; for vendors, how many suppliers there are and how many are visited.

When should due diligence start in an acquisition timeline?
Once the term sheet or non-binding offer is agreed and before the definitive agreement is signed. At that stage the buyer can see the seller's records but can still change the price, add conditions or indemnities, or step back. Starting earlier spends effort on a deal that may not proceed, and starting after signing leaves fewer ways to act on findings, usually only through closing conditions or indemnity claims.

Which supplier warning signs should a vendor check catch in a manufacturing company?
Look for a supplier whose address, phone number or bank details match those of an employee or a relative, a GST registration that is cancelled or suspended, or not filing returns, rates that rise without any change in specification, and billing that bunches at month end or year end. Each of these needs an explanation before the vendor is approved or paid again.

Who values the business if the acquisition needs a valuation?
Where the Companies Act, 2013 requires a valuation of property, stocks, shares, debentures, securities, goodwill or other assets, or of a company's net worth or liabilities, section 247 requires a person registered as a valuer and a member of an organisation recognised for valuers, appointed by that company's audit committee or, where there is none, its Board. Valuations under other laws, such as tax rules, follow those laws.

Based in Coimbatore, Reviewing Sites Across India

Astral Business Consulting provides due diligence services in India from its Coimbatore head office and can review targets and suppliers across Tamil Nadu, including Coimbatore, Tiruppur, Erode, Chennai and Hosur. Where plants, depots or job workers sit in other states, the firm's associate offices can support stock counts.

Plan a Due Diligence Review

Leave your name and email and the team will respond as soon as possible. It helps to have ready whether the review concerns a target company or a group of vendors, the locations involved and the date by which your board needs the findings.

contact@astralbusinessconsulting.com

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contact@astralbusinessconsulting.comDiscuss a Due Diligence Review