Turnover, Income & Capital Certificates

What are turnover, income and capital certificates?

Tenders, lenders, government schemes, regulators and business partners often ask for a chartered accountant's certificate confirming a figure: turnover for the last three years, income of a person, capital contributed by partners or shareholders, or export earnings.

A CA's certificate gives the recipient independent assurance that the figure matches the books, financial statements and tax records. It must carry a UDIN, which the recipient can verify.

The key terms

Common certificates:

Turnover certificate

Confirms revenue from operations for stated years, often split by segment or product.

Income certificate

Confirms an individual's or entity's income, often from tax returns and books.

Capital contribution certificate

Confirms capital introduced by partners, members or shareholders.

FDI-related certificates

Certificates on share capital and pricing needed for foreign investment reporting.

Export turnover certificate

Confirms export revenue, often for scheme benefits or registrations.

Source of figures

Audited accounts, books, GST returns and tax returns.

UDIN

The unique number that lets recipients verify the certificate.

Why it matters

These figures decide eligibility:

Tender eligibility

Turnover thresholds decide who can bid.

Loan eligibility

Lenders size loans on turnover and income.

Scheme benefits

Government schemes use turnover to decide eligibility.

Regulatory filings

FDI and other filings need certified capital figures.

Cross-checks

Recipients compare figures with GST and tax data.

Consistency

Mismatched figures can disqualify a bid or raise questions.

Legal responsibility

False certificates carry serious consequences.

Who is this for?

We certify figures only from reliable records, and reconcile them with GST and tax data before issue.

Common certificates and their uses

Which certificate for which purpose:

What we'll need from you

Financial statements

Audited accounts for the years certified.

GST returns

For reconciling turnover.

Tax returns

For income certificates.

Bank statements

For capital and receipts.

Prescribed format

The recipient's format, if any.

Supporting records

Allotment records, shipping bills or other evidence.

Fees depend on the number of years and the reconciliation needed.

How we certify

Our approach:

1. 1

   Understand the requirement

   We check the recipient's format and definitions.

2. 2

   Collect records

   Financial statements, returns and supporting documents are gathered.

3. 3

   Reconcile

   Figures are reconciled across books, GST and tax returns.

4. 4

   Resolve differences

   Differences are explained or corrected.

5. 5

   Prepare

   The certificate is drafted in the required format.

6. 6

   Issue

   It's signed and issued with a UDIN.

After the certificate

Keep in mind:

Keep copies

Keep the certificate and working papers.

Queries

We respond to verification queries from recipients.

Consistency

Use the same figures across applications.

Updates

Get updated certificates after new accounts are finalised.

Formats

Different recipients may need different formats.

Deadlines

Plan certificates ahead of tender deadlines.

Benefits and responsibilities