A turnover certificate is a detailed factual statement which certifies the turnover of an entity on basis the requirements. This certificate assures the users about the turnover generated by the business entity during a given period of time.
Contents of a Turnover certificate
The contents of this certificate will depend upon its requirements & the purpose for which the certificate is being produced.
A basic certificate would contain the following
1. Name & details of the business entity
2. Registration details
3. Period for which turnover is certified
4. Purpose of certificate
5. Basis by which the turnover mentioned in the certificate is arrived
6. Records examined during the course of issuance of certificate
7. Details about the party by whom the certificate is intended to be used or referred
8. Details of the practicing professional
10. Any other information, as required.
Requirement of certificate
This certificate can be required by anybody who wishes to get an assurance on the turnover of the entity in question.
Following are some illustrative cases where this certificate might be required:
1. For Participation in tenders issued by various companies, local authorities & institutes
2. By Banks & financial institution for the purpose of loan
3. By Investors for the purpose of funding an existing or new project/business
Also read: Project report for loan
Who can issue this certificate?
As already discussed, this certificate provides assurance to its user about the turnover of a business entity. It can be issued by a Practicing CA who specializes in issuance of this certificate.
Disclaimer: The above post is only for the purpose of academic discussion and should not be construed as any legal opinion in any matter whatsoever.
The author is a CA in practice at Delhi and can be contacted at: E-mail: email@example.com, Mobile: +91-9811741451