Audit and certification · Certificates by a CA
What documents are needed for a net-worth certificate from a Chartered Accountant?
Short answer
A net-worth certificate states a person's assets less liabilities on a given date. The CA needs evidence for each item: bank statements and balance confirmations, deposit receipts, demat and mutual fund statements, insurance surrender values, property documents with a registered valuer's report, and statements of loans outstanding, along with PAN and recent income-tax returns. The certificate is issued only for figures that can be verified and carries a UDIN.
Where it is used
Visa and student applications, tenders and contractor registration, bank guarantees and loans, court matters, and regulatory filings. The authority often prescribes a format and the date as on which net worth is to be stated. Bring that format.
Documents for an individual
| Item | Evidence |
|---|---|
| Identity | PAN, Aadhaar or passport |
| Bank balances | Statements and, for large balances, the bank's balance certificate as on the date |
| Fixed deposits | Deposit receipts or bank statements |
| Shares and mutual funds | Demat holding statement and mutual fund statement, valued on the date |
| PPF, NSC, EPF | Passbook or statements |
| Life insurance | Surrender value letter from the insurer (not the sum assured) |
| Immovable property | Sale deed or allotment letter, and a registered valuer's report for current value |
| Gold and jewellery | Valuation by an approved valuer, with purchase bills where available |
| Vehicles | Registration certificate and a reasonable valuation |
| Liabilities | Loan statements showing the balance outstanding on the date |
| Income | Income-tax returns of the last two or three years |
For a business
Audited financial statements of the last year, a provisional balance sheet up to the required date where needed, and the evidence above for any adjustments.
What the CA does and does not do
- The CA examines the evidence for each figure, as the ICAI Guidance Note requires, and states the basis of valuation and the exchange rate for any foreign-currency figure.
- The CA does not value property or jewellery personally; the certificate relies on a valuer's report, and says so.
- Assets held jointly are included only to the extent of the person's share.
- Figures that cannot be verified are left out or clearly qualified.
The certificate carries a UDIN, which the recipient can verify on ICAI's portal.
Legal basis
- ICAI Guidance Note on Reports or Certificates for Special Purposes (Revised 2016)
- ICAI guidelines on UDIN
Official sources
Related questions
- How can I verify a CA certificate or audit report using its UDIN?Every certificate, audit report or attestation signed by a Chartered Accountant in practice carries an 18-character Unique Document Identification...
- Why does every CA certificate carry a UDIN, and which documents need one?ICAI requires a Unique Document Identification Number on every certificate, audit report and other attest document signed by a Chartered Accountant in...
- What goes into a turnover certificate, a certificate for a bank loan, and a Form 15CB certificate?A turnover certificate states turnover for given years, verified with audited accounts and reconciled with GST returns. Certificates for banks cover...