Forensic Accounting Checks on Individuals and Companies

21st September 2023


Imagine being an investor, placing your faith and money into a startup that promises excellent returns. You diligently monitor monthly statements, trusting the reports and the team's integrity. But then, a revelation: discrepancies in revenue and financial misreporting. A scenario which many thought was far-fetched became a shocking reality with the confession by the co-founder of TargetOne Innovation Private Limited, parent company to GoMechanic, valued at a whopping $285 million last year.

Forensic Accounting Checks on Individuals and Companies

In this startling incident, despite several investors and professionals' involvement, the misreporting went unnoticed. How could such significant "errors" bypass the discerning eyes of industry professionals? The tale serves as a stark reminder of the gaps in the current system of financial checks and balances.

But why should you care? Imagine the ripple effect on the market and the countless individuals who place their trust in companies and their reporting structures. This incident points to a larger issue: What is Forensic checks of companies and individuals?

Forensic accounting checks aren't just for accountants and finance professionals; they are vital for every stakeholder in the ecosystem. The GoMechanic incident is a wake-up call for all to understand the importance of these checks in ensuring transparency, trust, and safeguarding investments. Stay tuned as we delve deeper into this essential topic, outlining the imperative of forensic checks and how they can bridge the gaps in the industry.

Understanding Forensic Checks and Their Significance

The term 'forensic' often evokes images of crime scenes and detectives. But in the financial world, it's a rigorous analytical approach to ensure transparency and security. Forensic checks encompass a range of services that safeguard companies against fraudulent activities.

Business Intelligence: This includes:

● Integrity Due Diligence: Assesses the credibility of businesses.

● Counterparty Due Diligence: Evaluates potential partners.

● Senior Management Due Diligence: Scrutinises the upper echelons of management.

Post-investment Investigations:

● Ensures the capital used post-investment is legitimate.

● Asset Tracing: Tracks and identifies assets, vital for debt recovery.

● Operational Risk Mitigation: Evaluates potential threats to a company’s day-to-day operations.

● Transactional and Vendor Due Diligences: Examines business deals and the reliability of vendors.

Sir Warren Buffet once said, "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."

Forensic checks act as that cautious step, ensuring reputations remain untarnished. Remember, in the world of finance and business, knowledge isn't just power—it's protection.

Introducing the K:Scan Solution

Have you ever wished for a one-stop solution that ensures businesses are what they claim to be? Dive into the world of K:Scan.

Presenting K:Scan A game-changer in the world of Business Intelligence, it goes beyond traditional 'company' level financials and litigation checks. Developed meticulously over 3 years by a 100-strong team, this platform offers unparalleled insights not just into companies, but also Sole Proprietors, Firms, HUFs and more.

Here's a glimpse of what K:Scan brings to the table:

● Widest Coverage: Integrating data from over 750 government sources, K:Scan collates scattered information, offering you unified and credible intelligence.

● Real-time Monitoring with EWS Suite: Say goodbye to surprises. Proactively monitor risk with our Early Warning Signals suite. Whether it's litigation or negative news, K:Scan EWS mechanism alerts you instantly.

● In-depth Business & Management Profiling: Get a holistic view of businesses, their vintage, demographics, and an exhaustive management profile.

● Financial Analysis & Litigation Alerts: From micro financial insights to alerts on regulatory actions and defaults, stay ahead in the game.

● Ease of Use: Whether you're a tech novice or guru, K:Scan user-friendly interface has got you covered.

Remember, in the maze of financial due diligence, K:Scan is your compass, ensuring you always find your way.

About Perfios

Perfios Software Solutions is India’s largest SaaS-based B2B fintech software company enabling 900+ FIs to take informed decisions in real-time. Headquartered in Bangalore, India, Perfios specialises in real-time credit decisioning, analytics, onboarding automation, due diligence, monitoring, litigation automation, and more.

Perfios core data platform has been built to aggregate and analyse both structured and unstructured data and provide vertical solutions combining both consented and public data for the BFSI space catering to their stringent Scale Performance, Security, and other SLA requirements.

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