On The BE Company Of Due Diligence Report Improvement Research

The due diligence report for BE company, a VIP client for AG bank, has followingproblems: financial situation and data describe imprecisely, financial ration use unreasonable,non-financial factor analysis illogically, information incomplete and no clear credit analysisfinal decision. The original report, which only stand on form, cannot offer strong foundationfor judgment. This thesis is trying to improve due diligence report form bank visual angle, seta standard report form for AG bank, and make the due diligence report useful for examiningand approving corporate loans process.My thesis use interview survey to investigate and locate6issues:1financial ratios-onlypiling up figures but has no explain the meaning;2report form-listing data for operation,solvency and profit capability as “same grade”;3financial ratio unreasonable selection;4present method-only load simple financial statements and accounting subjects change insteadof financial statement analysis,5non-financial factor shortage;6confuse the primary withsecondary on non-financial factor analysis.My thesis mainly corrects above defects from financial and non-financial factors analysis.Financial factors analysis conclude asset quality, profit capability, growth, cash flow analysisnon-financial factors analysis conclude corporation governance, industry risk, operation risk,credit, warrandice capability analysis. Via before and after interview survey for due diligencereport, I believe improved report could offer accurate, abundant and information on currentcorporation situations and risks, which found important basis for corporation loan creditanalysis.