Customworks Ltd. Due Diligence Policy

 

1. Purpose 

The purpose of this Due Diligence Policy is to establish guidelines and procedures for conducting due diligence activities in various business transactions, including but not limited to mergers and acquisitions, investments, partnerships, and vendor selection processes. This policy aims to ensure that all due diligence activities are conducted efficiently, thoroughly, and in compliance with applicable laws and regulations.

 

2. Scope 

This policy applies to all employees, contractors, and third parties involved in conducting due diligence activities on behalf of Customworks. It encompasses due diligence activities related to potential business partners, vendors, investment opportunities, and any other business transactions where due diligence is deemed necessary.

 

3. Responsibility

The responsibility for conducting due diligence activities lies with the Managing Director or person designated by the Managing Director. However, various department managers or individuals may be involved in specific due diligence activities based on the nature of the transaction. 

 

4. Due Diligence Process The due diligence process shall include, but not be limited to, the following steps:

 

4.1. Planning: Prior to initiating due diligence activities, the Managing Director shall develop a due diligence plan outlining the objectives, scope, timeline, and resources required for the due diligence process.

4.2. Information Gathering: All relevant information pertaining to the target entity or transaction shall be collected from reliable sources, including financial statements, legal documents, regulatory filings, operational data, and other relevant documentation.

4.3. Analysis and Evaluation: The gathered information shall be thoroughly analysed and evaluated to assess the risks, opportunities, and potential impact on Customworks. This analysis shall consider financial, legal, operational, regulatory, and reputational aspects.

4.4. Risk Assessment: A comprehensive risk assessment shall be conducted to identify and prioritize potential risks associated with the transaction. Risks shall be categorized based on their severity and likelihood of occurrence.

4.5. Compliance Review: Due diligence activities shall include a review of compliance with applicable laws, regulations, industry standards, and internal policies. Any non-compliance issues shall be identified and addressed promptly.

4.6. Documentation: All due diligence activities, findings, and decisions shall be documented in writing, including but not limited to due diligence reports, risk assessments, compliance checklists, and any other relevant documentation.

4.7. Reporting: Regular updates and reports on the progress of due diligence activities shall be provided to the relevant stakeholders, including senior management, legal counsel, and other key decision-makers/ advisors.

4.8. Decision Making: Based on the findings of the due diligence process, informed decisions shall be made regarding the viability and risks associated with the transaction. The Managing Director, Senior management and any additional advisors required shall review the due diligence reports and make final decisions accordingly.

5. Confidentiality 

All information obtained during the due diligence process shall be treated as confidential and shall only be disclosed to authorized individuals involved in the transaction. Confidentiality agreements may be required to protect sensitive information.

 

5. Compliance

All due diligence activities shall be conducted in compliance with applicable laws, regulations, and internal policies. Any legal or regulatory requirements shall be adhered to throughout the due diligence process.

 

6. Review and Update

This Due Diligence Policy shall be periodically reviewed and updated as necessary to ensure its effectiveness and compliance with evolving legal and regulatory requirements.

 

7. Implementation

This policy shall be communicated to all relevant employees, contractors, and third parties involved in due diligence activities, and appropriate training shall be provided to ensure understanding and compliance.

 

8. Enforcement

Failure to comply with this Due Diligence Policy may result in disciplinary action, up to and including termination of employment or contractual relationship, in accordance with Customworks Ltd.’s disciplinary procedures.

 

9. Contact

For any questions or concerns regarding this Due Diligence Policy, employees and stakeholders may contact the Managing Director for guidance and clarification.

 

Approval This Due Diligence Policy has been approved by Ian Scott (Managing Director) and shall be effective as of 01/04/2024.