DVARA KSHETRIYA GRAMIN FINANCIAL SERVICES PVT LTD (Dvara-KGFS) wanted to invest in Saija Finance Pvt Ltd, an NBFC operating in the several Indian states. M2i was assigned to undertake Business Due Diligence on behalf of DVARA prior to the investment to assess the quality of assets and its management systems.
M2i undertook the following tasks as part of the exercise
1. Assesses compliance between MFI’s stated credit policy and operations
2. Undertake credit risk analysis of portfolio on the basis of analysis of MIS data
3. On a sample basis, cross-checks MFI records with those of clients, at the clients' location
4. Checks accuracy of the internal reports generated by the MFI
5. Confirms physical identity of the clients on a sample basis
6. Analyzes and reports the key risks that the MFI faces