According to the United Nations, the estimated money laundered each year globally is roughly 2-5% of the Global GDP, which amounts to $800 billion to $2 trillion. Just to put these numbers in perspective, the GDP of a gigantic country like India pining to be a global superpower is 2.78 trillion dollars. In India itself, the money laundered out of the country every year is estimated to be more than 15,50,000 crores. These statistics reveal one conspicuous fact about the inefficiency of the current banking ecosystem to curtail these money-laundering activities.

However, Fintech has emerged as the trailblazer in this unavoidable, grim situation with cutting-edge due diligence applications. Karza Technologies' is the forerunner in due diligence offerings with its award-winning, innovative solution "KScan"

KScan enables conducting due diligence, monitoring counterparties, identifying conflicts of interest, and complying with applicable regulations and potentially mitigating risks. In this blog we will understand the value KScan offers by evaluating its impact and its benefits:

Business and Management profiling

Kscan is the receptacle of all the proprietary information about any entity regardless of its constitution type. i.e a sole proprietorship, partnership firm, company, etc. It provides exhaustive information on the type of business activity, the products or services the company is dealing with, industry it belongs to, etc., the entire paraphernalia and machinery of the organization. We have an extensive coverage of entities about the nature of their business, and the offerings of the company not from a single standpoint of view but from the perspectives of statutory bodies across the board.

An entity is built by people, for people, and of people. Assume the company is run by pioneers and highly distinguished individuals of any industry. In that case, it quadruples the company's brand value, boosts confidence in the company's management, and moreover impacts the bottom line of the company. Hence, you'll get a consolidated list of current and former managers under the management tab. Kscan initially provides a sneak-peek of the constitution of an organization which can act as the very foundation of further processes in the KYC template.

A colossal 2.7+ crore business entities are profiled on this platform, covering the economic landscape of India. The business and management profiling help understand the brick-and-mortar of the organization and consequently assists in due diligence. It gives you a 360 degree holistic view of the organization, its demographics and its management.

Comprehensive related party network

KScan's award-winning proprietary graph technology leverages 450 crore linkages between 2.7+ crore businesses. This gives an inkling of the sheer coverage of the related party network that helps uncover and judge disclosed and undisclosed relationships, and create the largest relationship network in the fintech space, ideal for any due diligence as it highlights any kind of relationship that would affect critical business decisions.

With our investigative expertise, we have detected and identified a whole slew of red flags ranging from businesses registered under the same address, using the same email ID, domain, even ownership of the domain to former and current employment relationships, family associations, thus providing a comprehensive and thorough business network analysis and graph that extends to 4th degree of connections, resulting in the most exhaustive due diligence insights in the market today. 

Litigation Monitoring 

With Litigation BI you can identify and track all cases filed by or against a company across District Courts, High Courts, the Supreme Court, and Several Commissions and Tribunals. It enables you to track the total cases, cases awaiting a verdict, cases disposed of, cases that pose an extremely high risk, frivolous lawsuits, etc. KScan has award-winning fuzzy algorithms and filtering options that give the user access to identify and analyze the best results. You can extract the complete juridical history of the organization and accordingly conduct a risk assessment of the target entity and consequently determine the terms of your offering.

Negative Checks 

Another significant USP of KScan are the negative checks that also help monitor the counterparties on an ongoing basis. You can track and receive alerts around early warning signals of your portfolio companies, including Litigation and Negative news.

There are 88 odd alerts that you can monitor, which are grouped into various sections, i.e., Regulatory actions, Statutory compliance, Banking defaults, auditor alerts, credit ratings, etc. These alerts inform you of any monumental change under any of the above sections related to the target entity, such as credit rating downgraded or RBI declaring the company as a shell company, etc. 

KScan tracks, monitors, and conducts a detailed analysis of news surrounding a target entity, with news segregated by severity, relevance, and exposure, which is ideal for due diligence of larger entities that have an oversized impact on operations and profits because of negative news floating around. It keeps you covered with all the current happenings in the organization that may tarnish its reputation or affect its financial stability.

You can get a quick glimpse into the financial defaults of the company of previous financial obligations. It provides the list of assets up for auction that were hypothecated as collateral for loans that the target entity is unable to pay.

Embezzling shareholder's money by floating innumerable shell entities that may portray a gleaming veneer but with insides that are chockablock with the filth of financial crimes, deceiving even the statutory authorities, KScan was designed after studying extensive financial and other patterns usually followed by shell entities.

KScan was imbibed with a rule-based engine to help identify shell entities with a 98.5% accuracy. Through KScan, Karza technologies have been able to identify 150000+ shell entities. Our product uses more than 120 parameters/data points to arrive at the classification, including high-risk patterns in financials, high-risk zones/addresses, hidden email linkages, etc.

KScan has the most comprehensive negative checks compared to similar applications in the market!

Financial Analysis

Through KScan, you can evaluate financial stability or the creditworthiness of MCA regulated entities. You can perform detailed and meticulous financial analysis by extracting the recent financial statements filed with the Ministry of corporate affairs, such as the balance sheet, profit and loss statement, cash flow statement, etc. 

The value-add KScan provides is that it pares and parses the financial data to arrive at appropriate and handy ratios that offer profound insights into the company's financial health, and help identify and detect fundamental changes in the financial position of the company.

You can access credit ratings assigned to the organization, which portrays the indebtedness and solvency of the company. The borrowings tab will reveal the loan exposure of the company and the value of the assets hypothecated in lieu of the loans. This is vital information to understand the repayment capacity of the borrower. You can access the organization's complete financial shape or standing to conduct detailed financial analysis as due diligence

Lead Generation [Exclusive]

Using the Lead Generation, you can leverage this extensive, humongous pool of information to extract relevant leads. You can select filters spread across different groups such as Profile, Location, Industry, GST, Financials, Charges, Employee Strength, and Ratings, condense your search to a specific set of customers, and glean relevant data. 

You can create templates based on selected filters, absolving you of the arduous task of assigning filters every time you use this ingenious feature. You can create a template to distill information about your target customer base and use this template seamlessly whenever you’re on the hunt for new customers. 

With KScan you can not only conduct due diligence but also target new customers and expand your customer base. You can genuinely harness the real intrinsic value of such widespread data.

Hence, KScan provides a whole new paradigm of due diligence. It enables you to conduct a detailed autopsy of the company and look beyond the company's declarations. It can act as a centralized repository of specialized and comprehensive data of your target customer base.

Disclaimer: The views expressed in this blog are those of Karza Technologies and do not reflect policies/ opinions of any entities whatsoever. The content of this blog is for educational purposes only and provides no guarantees of completeness, accuracy and usefulness of the content expressed or implied.