—Certifications & Attestations
Certificates for Banks & Lenders
Drawing-power, working capital and end-use-of-funds certificates for lenders.
Handled by a practising Chartered Accountant or Company Secretary.
Scope of work
Drawing-power, working capital and end-use-of-funds certificates for lenders.
Key deliverables
- Signed CA certificates
Governing law
Lender requirements
Frequency
Monthly / Quarterly / As required
REGISTRATION + COMPLIANCE CARE
Certificates for Banks & Lenders + Compliance Care
Get a quote
+ ₹9,599/yr for year-one ROC compliance
- Signed CA certificates
- Financial statements in Schedule III format
- Board report and AGM notice
- Filed AOC-4 with SRN
- Filed MGT-7 / MGT-7A with SRN
- Board and AGM minutes
500+
Companies incorporated
100%
CA/CS-signed filings
4.8/5
Founder rating
—A closer look
Understanding certificates for banks
Everything below is written for borrowers — the CA certificates banks and lenders ask for, from end-use and stock statements to net worth and margin certificates, and how to keep them accurate.
What are certificates for banks and lenders?
Banks and NBFCs rely on chartered accountants' certificates at every stage of a loan: at sanction (net worth of promoters, turnover, projected figures), during disbursement (margin brought in, end-use of funds), and through the loan's life (stock and book debt statements, compliance with covenants).
Accurate certificates keep drawing power, renewals and relationships on track. Inaccurate ones can lead to reduced limits, penal interest, or worse.
The key terms
Common lender certificates:
- End-use certificate
- Confirms loan funds were used for the sanctioned purpose.
- Margin certificate
- Confirms the borrower's own contribution to a project or asset.
- Stock and book debt statement
- Monthly or quarterly statements that set drawing power for working capital.
- Net worth certificate
- For promoters and guarantors, at sanction and renewal.
- Covenant compliance certificate
- Confirms financial covenants like debt-equity or DSCR are met.
- Unhedged foreign currency exposure
- Certification of foreign currency exposure, which lenders monitor.
- Drawing power
- The amount a borrower can draw, based on stock and receivables less margins.
A simple example
A Hyderabad pharma distributor has a ₹6 crore cash credit limit. Its drawing power is based on monthly stock and book debt statements. At the annual renewal, the bank's stock auditor finds the statements included receivables over 90 days old, which the sanction excludes, and stock valued above cost. Drawing power is cut. The company then has its CA review statements quarterly, reconciling them with the books and applying the sanction's ageing and valuation rules. Next year's renewal goes smoothly.
Why it matters
Lender certificates drive credit:
- Drawing power
- Stock and debtor statements determine available working capital.
- Disbursement
- Margin and end-use certificates unlock loan tranches.
- Renewal
- Accurate certificates support smooth renewals.
- Diversion risk
- Funds used outside the sanctioned purpose can trigger action.
- Covenant breaches
- Breaches can lead to penal interest or recall.
- Stock audits
- Bank stock auditors compare statements with records.
- Fraud monitoring
- Lenders scrutinise discrepancies closely.
Who is this for?
- Businesses with working capital limits
- Borrowers drawing term loans for projects
- Promoters and guarantors
- Companies with financial covenants
- Importers and exporters with currency exposure
We certify from your books and records; certificates can't substitute for good bookkeeping.
Certificates across the loan's life
What lenders ask for, and when:
| Aspect | At sanction | During disbursement | Ongoing |
|---|---|---|---|
| Typical certificates | Net worth, turnover, projections | Margin, end-use, invoices | Stock statements, covenants, end-use |
| Purpose | Assess eligibility | Release funds | Monitor the loan |
| Frequency | Once, and at renewal | Per tranche | Monthly, quarterly or annually |
What we'll need from you
- Sanction letter
- Terms, margins and covenant definitions.
- Books of account
- Up-to-date ledgers and stock records.
- Debtor ageing
- Receivables by age and customer.
- Payment records
- For end-use and margin certification.
- Financial statements
- For covenants and net worth.
- Bank's formats
- The lender's prescribed formats.
Recurring certificates are quoted as a retainer.
How we certify for lenders
Our approach:
- 1
Read the sanction
We note margins, exclusions and covenant definitions.
- 2
Collect records
Books, stock records and payment evidence are gathered.
- 3
Verify
Figures are traced to source documents.
- 4
Apply lender rules
Ageing limits, valuation and margins are applied.
- 5
Prepare
Certificates are drafted in the lender's format.
- 6
Issue
They're issued with a UDIN.
Staying on track with lenders
Good practice:
- Submit on time
- Late stock statements can freeze drawing power.
- Reconcile
- Reconcile statements with the books each time.
- Track covenants
- Monitor covenants during the year, not just at year-end.
- Use funds properly
- Keep loan funds for the sanctioned purpose.
- Prepare for audits
- Keep records ready for stock audits.
- Communicate
- Tell lenders early about potential breaches.
Benefits and responsibilities
Benefits
- Certificates in lender formats
- Figures that match your books
- Smoother drawing power and renewals
- Early warning on covenants
- Fewer stock audit surprises
Responsibilities
- Keep books and stock records current
- Share sanction terms
- Use funds for sanctioned purposes
- Submit statements on time
- Disclose problems early
- Provide supporting documents
—FAQ
Questions borrowers actually ask us
Often because stock or receivables didn't meet sanction rules — old debtors, non-moving stock, or valuation above cost — or statements were late.