Format of Net Worth Certificate by a Chartered Accountant (CA)

A net worth certificate of a company from a practicing Chartered Accountant may be asked on different occasions depending on the circumstances.

While there might be already some prescribed format in which the certificate may be asked for, a Chartered Accountant can provide the certificate in the way he deems fit by following necessary provisions under the law.

Net worth is to be calculated as per the audited financials for the previous financial year.

(The certificate must be printed on the letterhead of a practicing Chartered Accountant.)

TEMPLATE #1

(Simple template) - modify it as necessary

Net-worth Certificate

TO WHOM IT MAY CONCERN,

This is to certify that the Net worth of ...................... Pvt. Ltd. (CIN: ...............................) as on dd.mm.yyyy as per the statement of computation given hereunder is Rs. .................... (Rupees ......................................... only).

Particulars                                        Amount (in Rs.)

Paid up Capital                                    ...............

Add: Reserve & Surplus                     ...............

Less: Accumulated losses, if any        ...............

Less: Miscellaneous Expenditure       ...............

Net worth                                           ...............

 

Book Value per share: Rs. ................

(Total Net worth / Total number of outstanding shares)

It is further certified that the computation of net worth based on my/ our scrutiny of the audited books of accounts, records and documents is true and correct to the best of my/our knowledge and as per the information provided to us by the company is to my/our satisfaction.

Place: .................

Date: ..................

For (Name of CA Firm),

    (Signature)

(Name of Partner)

Chartered Accountant

Memb. No.: .................

TEMPLATE #2

(Lengthy template) - modify it as necessary

Net-worth Certificate

TO WHOMSOEVER IT MAY CONCERN,

This is to certify that the Net worth of (Name of the Company) as per the statement of computation of even date annexed to this certificate is Rs. .................... (Rupees ................................. only).

This is to certify that the above-mentioned information is true to the best of my knowledge and belief, according to the books and documents produced before me for verification.

    (Signature)

(Name of Chartered Accountant)

Chartered Accountant

Memb. No.: ................

Place: ...................

Date: ...................

Annexure

COMPUTATION OF NET WORTH

(As on dd/mm/yyyy)

Sl. No.    Particulars           Amount (INR)

    i.         Paid up capital      ...........

    ii.        Free Reserves       ...........

    iii.       Sub-total (i + ii)  ...............

Less:

    iv.       Accumulated Losses    ............

    v.        Receivables (more than 6 months old)    ...........

    vi.       Preliminary and Preoperative expenses not written off    ...........

    vii.      Miscellaneous Expenditures    ...........

    viii.     Sub-total (iv + v + vi + vii)    ..............

Net worth (iii - viii) ................

Book Value per share

Total Net worth / Total number of outstanding shares: Rs. ...............