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.
The contents of a turnover certificate will depend upon its requirements & the purpose for which turnover certificate is being produced.
A basic turnover certificate would contain the following
1. Name & details of the business entity
2. Registration details
3. Period for which turnover is certifies
4. Purpose of turnover 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.
A turnover 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 turnover 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
As already discussed, turnover 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 turnover 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 protected], Mobile: +91-9811741451