Distinguish between the following: (ii) 'Operational Due Diligence' and 'Financial Due Diligence'.

Operational Due Diligence Operational due diligence aims at the assessment of the functional operations of the target company, connectivity between operations, technological up-gradation in operational process, financial impact on operational efficiency etc. It also uncovers aspects on operational weakness, inadequacy of control mechanisms etc. Financial Due Diligence Financial due diligence includes review of accounting policies, review of internal audit procedures, quality and sustainability of earnings and cash flow, condition and value of assets, potential liabilities, tax implications of deal structures, examination of information systems to establish the reliability of financial information, internal control systems etc.