To Whomsoever It May Concern
This is to certify that I/We have examined the books of accounts, audited/unaudited financial statements, income tax returns, bank statements, and other relevant records of Mr./Ms./M/s ___________________________ (hereinafter referred to as “the Entity”), having PAN: ________________, and address at ____________________________________________.
Based on such examination and information furnished, we hereby certify the Debt–Equity position and ratio of the Entity as on __________ (Reporting Date) as follows:
- Equity (Shareholders’ Funds)
- Share Capital: ₹ __________
- Reserves & Surplus: ₹ __________
- Revaluation Reserve (if any): ₹ __________
- Less: Intangible Assets / Misc. Expenditure (if considered): ₹ __________
Total Equity (A): ₹ __________
- Debt (Borrowed Funds)
- Long-Term Borrowings (Term Loans): ₹ __________
- Short-Term Borrowings (CC/OD/Working Capital Loans): ₹ __________
- Other Interest-Bearing Liabilities: ₹ __________
Total Debt (B): ₹ __________
- Debt–Equity Ratio Calculation
Debt–Equity Ratio = Total Debt / Total Equity
- Total Debt (B): ₹ __________
- Total Equity (A): ₹ __________
Debt–Equity Ratio: ________ : 1
- Verification Statement
We further certify that:
- The above ratio has been computed based on examination of financial statements and supporting records provided to us.
- The classification of debt and equity is in accordance with generally accepted accounting principles.
- We have verified the arithmetical accuracy of the figures used in computation.
- No assurance is provided on future changes in capital structure or liabilities.
- Purpose of Certificate
This certificate is issued at the specific request of the Entity for submission to Bank / Financial Institution / Lending Agency for the purpose of Loan Processing, Working Capital Assessment, Term Loan Approval, Credit Rating, or Financial Appraisal and should not be used for any other purpose without prior written consent.
- Limitation
This certificate does not constitute an audit opinion or assurance engagement under Standards on Auditing issued by ICAI. We do not accept responsibility for any future changes in financial position or subsequent events affecting the ratio.
Place: __________
Date: __________
For (Name of CA Firm / Chartered Accountant)
(Signature)
CA Name: ___________________________
Membership No.: _____________________
FRN (if firm): _______________________
UDIN: _______________________________
Seal: ________________________________
