International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 12 Issue: 08 | Aug 2025
p-ISSN: 2395-0072
www.irjet.net
ROLE OF DUE DILLLIGENCE IN AGRIBUSINESS Dr. Shazia Shaheen1, Dr. Prerna Bhagalpurkr2 1Visiting Faculty, Post Graduate Department of Commerce & Business Administration, T.M University, Bhagalpur,
Bihar, India.
2 Assistant Professor, Indraprastha Engineering College, Ghaziabad, UP, India
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Abstract - Due Diligence is a key concept in corporate governance, especially in the private firms. This review paper explores the importance of due diligence in agribusiness, basically in a diversified and rapidly growing market of India This review highlighting its significance in risk management, investment decisions, and regulatory compliance issued be SEBI. By scrutinizing the various aspects of due diligence, including external and internal factors of the company, stakeholders and shareholders. It entails a careful examination of the fiscal, social, legal, and environmental elements, enabling risk audits and preemptive steps to reduce possible hazards. By taking this preventive measure, companies and investors can lessen their exposure to potential losses and liabilities and cut down on needless expenses. Due diligence is a core concept of corporate governance and it must have some ethical considerations while implementing any rule in agribusiness. In order to enable informed decision-making and ensure environmental and moral soundness, it assists in identifying risks and information gaps. They are used to growing and processing crops, adjusting farming operations, and comprehending commodity prices. Investors may find it simple to become enthralled with an acquisition and move on without fully comprehending the nature of their investment. Agribusiness is evolving in India and all legal and technical issues are need to address with demand and supply of the existing market. The market and customers are two parts of same coin where due diligence and transparency is essential for growth. In order to improve the sustainability and profitability of agriculture ventures in India, due diligence is essential.
Key words: Due Diligence, Agribusiness, stakeholders, diversified, sustainability 1.INTRODUCTION Agribusiness in India is a vital component of the economy, contributing significantly to GDP and employment. However, it is also fraught with challenges such as market volatility, regulatory hurdles, and environmental issues. Due diligence serves as a crucial mechanism for stakeholders ranging from investors to farmers to mitigate risks and ensure informed decision. In the financial industry, due diligence is an essential procedure that include reviewing a target's tax and financial documentation. Assuring the viability of the investment, it assists in identifying potential hazards and threats to the investment. Through the identification of possible hazards and profitable investment opportunities, this approach assists investors in evaluating the competitive landscape of the market. A third-party, independent assessment of a new technology and the company that identifies potential and charts a course for growth is known as technical due diligence in the agricultural industry. A lot of the opportunities and hazards won't prevent a deal from being made; rather, they will enable everyone proceed in agreement [1]. Agribusiness complex deals frequently necessitate a high level of due diligence from both the buyer and the seller. The buyer may need to verify annual water rights expenses as part of their post-close operating cost projections, while the seller may need to schedule due diligence and closing around the crop's growth and harvest cycle. While farmland leases may involve flex or hybrid rent payments, farmland purchases may also include repayment for cultural expenditures paid by the seller. These financial considerations should be part of the buyer's due diligence evaluation since they are essential to their assessment of the asset [2]. Agribusiness companies are struggling to expand due to heightened rivalry, shifting circumstances, flexible national and international regulatory frameworks. Firms must accomplish significant growth if they want to stay in the game or lead their industry. The normal M&A deal goes through several stages. When deciding whether to move forward with a contract, the due diligence phase of the process is crucial. Evaluating environmental and regulatory compliance is an essential part of agricultural due diligence. This encompasses examining the business's adherence to applicable environmental and regulatory
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