You are engaged by a Bank for conducting the due diligence on behalf of the bank and submission of Diligence Report. What are the check points to be observed which may be concluded as Suggested alerts.

The following check points should be observed which can be concluded as Suggested alerts: Disproportionately large cash payments in relation to normal requirements in a company of its size. Frequent circular transactions between various bank accounts. Inordinate delay in submission of stock statements/book debts/quarterly filings to the Bank(s). Large differences between MSOD/QIS2/FFR etc. with stock statements and inventory regularly and particularly as on date of balance sheet. Delay/default in meeting statutory payments. Frequent delays and non compliances with both legal and financial. Any apparent unrelated payment(s) that come to notice. Disproportionate holding of Work-in-progress (WIP). Regular on account payments to creditors. Regular on account payments from debtors. Any differential pricing system to associates. Any attachment of bank accounts from statutory authorities (input from bank). Borrowings from unconventional sources. Dishonour of cheques. Unduly large sales returns/return of bills. Lack of tie ups in project finance resulting in diversion of short term funds. Winding-up cases if any filed against the company. Insolvency proceedings against any of the promoter(s)/director(s).