Priya Sharma (Company Secretary & Student.MBA) (998 Points)
25 November 2009What is a Due Diligence Certificate??Who can issue it??Can a PCS issue Dude Diligence Certificate?/?
Plzzz suggest
Priya Sharma
Joy
(Advocate)
(90 Points)
Replied 26 November 2009
Hi Priya,
Due Diligence can be conducted for various purposes. Scope of a due diligence may vary from being legal, financial, taxation, banking, etc. It depends on the specific requirement and transaction. For e.g., banks carry out due diligence of a particular project, like housing development, to assess if the developer and the project is viable for the bank to sanction a loan. In such a situation, the banks may issue a due diligence certificate.
In case a legal due diligence is carried out by an Advocate or law firm, the report of such due diligence may be prepared by the same Advocate or law firm. Similar is the case for other types of due diligence.
More common than due diligence certificate is a 'due diligence report'.
Hope this helps.
Joy
CAclubindia
