Question 1

Which certificates require a UDIN and what happens if one is missing?

Accepted Answer

ICAI made UDIN mandatory for all certificates, audit reports, and other attest-function documents signed by a CA from February 1, 2019 (ICAI Announcement January 2019; updated circular July 2019). A certificate without a valid UDIN is rejected by banks, RBI, SEBI, and most government portals. UDINs must be generated on udin.icai.org within 15 days of signing the document; non-compliance may attract misconduct proceedings under the Chartered Accountants Act 1949.

Question 2

What is a Net Worth Certificate and when is it statutorily required?

Accepted Answer

A Net Worth Certificate is a CA-issued statement certifying the net worth of a person or entity computed from the balance sheet on a given date. It is required for visa applications, SEBI registration of intermediaries (SEBI (Stock Brokers) Regulations 1992, Regulation 6), bank credit limits, and admission as a partner or designated partner in an LLP (LLP Act 2008, Section 22). The certificate must carry the CA membership number, firm registration number, and a live UDIN.

Question 3

Which CA certificate does a bank require for a working-capital loan or overdraft?

Accepted Answer

Banks typically require a Stock and Book Debt Certificate certifying the value of current assets as on a date, used for drawing-power calculation under RBI Master Direction on Credit (DBR.No.Dir.BC.85/13.03.00/2015-16). For term loans and MSME facilities, a Turnover Certificate or Project Report certified by a CA may also be needed under the MSME Development Act 2006. Both documents must carry a UDIN generated on the same day as signing.

Question 4

Is a CA certificate the same as a tax audit report, or are they different engagements?

Accepted Answer

They are separate engagements. A tax audit report under ITA 2025 Section 63 (formerly ITA 1961 Section 44AB) is a statutory report filed in Form 3CA or 3CB along with Form 3CD on the income-tax portal, and is governed by the Standards on Auditing. A CA certificate is an attest-function document issued for a specific factual assertion (income, turnover, net worth, etc.) and is governed by ICAI Standard on Related Services (SRS) 4400. A CA cannot substitute one for the other.

Question 5

Does the CA verify GST returns before issuing a Turnover Certificate?

Accepted Answer

Best practice under ICAI SRS 4400 requires the CA to reconcile the turnover figure with audited financial statements or, where accounts are unaudited, with the aggregate of all GSTR-3B returns filed under CGST Act 2017 Section 39 and GSTR-1 under Section 37. The certificate must state the basis of computation (audited accounts, GST returns, or books of account), the period covered, and carry a UDIN. Discrepancies between GSTR-1, GSTR-3B, and books must be disclosed in the certificate.

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