Situation
Reviewing a stressed or insolvent company?
When a borrower is under stress, lenders and resolution professionals need to know whether value was diverted. We conduct transaction audits and stressed-asset investigations to identify preferential, undervalued, extortionate and fraudulent transactions and fund diversion, supporting recovery and applications under the IBC.
Warning signs
Signs you need an independent investigation
- Sudden deterioration in a borrower’s financials
- Large related-party transactions before default
- Assets sold below value or transferred to group entities
- End-use of loan funds that cannot be verified
Act quickly, act carefully
What to do in the first 48 hours
- Step 01
Secure books and records
Obtain access to accounting systems and bank statements early.
- Step 02
Define the look-back period
Align the review with statutory look-back periods.
- Step 03
Coordinate with counsel
Findings may support applications before the adjudicating authority.
Our approach
How we investigate
- 01
Transaction review
Test transactions against the IBC categories of avoidance transactions.
- 02
Fund-flow analysis
Trace loan funds and identify diversion or siphoning.
- 03
Related-party mapping
Identify connected entities and individuals.
- 04
Reporting
Clear findings with supporting evidence for lenders and the RP.
What you receive
- Transaction audit report
- Fund-flow analysis
- Schedule of potential avoidance transactions
Frequently asked questions
What are avoidance transactions under the IBC?
The Insolvency and Bankruptcy Code, 2016 allows certain transactions to be challenged: preferential transactions (section 43), undervalued transactions (section 45), extortionate credit transactions (section 50) and fraudulent or wrongful trading (section 66).
Proof
Relevant case files
₹120–150 Crlender exposure reviewed
Stock That Existed Only on Paper
A borrower inflated stock statements and booked circular sales among related firms to draw working capital, then moved the money into promoter property.
- Stock reconciliation
- Related-party and circular-trade analysis
- End-use of funds
- Corporate records and OSINT
₹3–5 Crbid de-risked before any money moved
Real Auction, Unverified Middleman
Before paying a deposit on a distressed property, a bidder asked us to check the auction, the account and the person who brought the deal.
- Insolvency and corporate records
- Process document review
- Account validation
- Background check on the intermediary
Client names and identifying details are withheld to protect confidentiality. Specific references and client experiences can be shared on request, with the client’s consent.
Other situations
Facing something different?
- Received a whistleblower complaint?Investigate allegations independently, protect the whistleblower and give your board a defensible answer.
- Suspect fraud, embezzlement or financial misconduct?Establish what happened, who was involved and how much was lost, with evidence that stands up.
- Suspect vendor kickbacks or procurement fraud?Find collusion, kickbacks, inflated invoices and fictitious vendors in your purchasing and supply chain.
- Vetting a partner, vendor or acquisition target?Know who you are dealing with before you sign, invest or onboard: promoters, related parties and reputation.
- Need to trace hidden or diverted assets?Find assets that have been concealed, moved or held through others, and support their recovery.
- Facing a dispute that needs forensic evidence?Quantify losses, analyse the evidence and give expert opinion that stands up in court or arbitration.