Net Worth Certificate Format for Company
Searching for Net Worth Certificate Format for Company? Get Various format which can be used for the purpose of submission of Chartered Accountant (CA) Certified Net Worth Report. Check here content, customization, sample copy for CA Net Worth Certificate format.
This Net Worth Certiifcate format(s) are useful for
- Private Limited Company
- Public Limited Company
- Limited Liability Partnership (LLP)
- One Person Company
- Trust/AOP/BOI/HUF/Section 8
- Partnership Firm
- Other Company Entity
- Company Format
- CA Certified
- Fees: 3000/-
- Get in 3 Hours
Require Net Worth Certificate in Customize Format for Company?
Method of Calculation of Net Worth of Company/LLP
Capital & Reserve Method – Simple Approach
Basis of Valuation: Book Value or Accounting Value
- Net Worth = Share Capital + Premium + Surplus Reserves (Cumulative Profit and Loss Account)
- Benefits: Easy Approach, Useful for Tender, DEMAT, and Others
- Limitation: Book Value Approach ignores the realistic value of assets and liability.
Asset & Liabilities Method – Value Approach
Basis of Valuation: Two Method “Book Value” and Market Value/NRV
- Net Worth = Total Value of Assets (Current Assets, Fixed Assets, Investment, etc) – “(Minus)” Total Value of Liabilities (Long Term, Short term etc)
- Benefits: More perfection in value compare to simple approach
- Limitation: Market Value and NRV Approach of Valuation can nulify limitation.
Format of Net Worth Certificate for Company/LLP/Firm
Importance of Book Value & Market Value of Assets During Net Worth Calculation for Company
Book Value shows the original cost of an asset minus depreciation, reflecting its value in the company’s accounting records.
Market Value represents the current price the asset could sell for in the open market.
Importance:
Both are crucial in net worth calculation—Book Value ensures accounting accuracy, while Market Value gives a realistic financial picture, especially for investors or during mergers, loans, or valuation.
Usage of Company Net Worth Certificate
Followings can be primary usage of net worth certificate of company, according to its use format can be customized
- DEMAT Account Opening
- Tender Purpose
- Bank Loan, NBFC Loan
- SEBI and RBI Requirement
- Merger and Amalgamation
- RFP Submission
- Government Scheme application
- Funding procedure
What are the Content of Net Worth Certificate fo Company?
A Chartered Accountant (CA) prepares company (being Private Limited, LLP, Firm, Section 8, HUF, etc) net worth certificate keeping in minds its usage. based on usage CA makes report format which includes essential elements. Thus, following content and topics can be part of any company net worth certificate format.
- Title of the Report
– Name of the certificate (like Net Worth Certificate of Comapny/LLP). Who It’s For
– User Parties (Eg. RBI, SEBI, ROC, Tender, Government etc).Details of Company/LLP/Firm: Name, PAN Number, or CIN Number, Registered Address of Company
Total Net Worth (Money Value)
– Total Net AssetsWhy the Report is Made
– Mention that it’s Purpose
6. List of All Assets
– With proper value as per the Format:
- Fixed Assets (Land, Factory, Machinery etc)
- Investments
- Currency Assets
Liquid assets (cash, bank balance)
Movable assets (Debtors and balances)
7. Liabilities: Loans, Creditors, Borrowings, Payable etc
8. CA’s Details – CA’s name, ID number, date, place, and firm name (if any).
9. Seal, Signature, and UDIN
– Stamp, signature, and a special number to verify the report.
Fees for CA Net Worth Certificate in Company Format
Charges Rs. 3000/- for Net Worth Certificate of Private Limited Company, LLP, Firm, etc