For lenders: turnover, working capital, stock, funds, dues

Five certificates a bank asks for at sanction or renewal. Each has three steps before Review & Issue:

1. Entity — the company, LLP or firm. Pick a saved business client to pre-fill it.
2. Addressee & Engagement — the bank branch, the date of your engagement or the request, and the certificate date. Most also ask for the purpose, printed after the bank's name and in the restriction on use.
3. The particulars, below.

Turnover for a bank facility

Name the facility applied for. Then enter one row per year: the revenue from operations and where it comes from — audited financial statements (with the audit report date) or, for a year not yet audited, the books. The Statement prints the source against each year. Other income is not turnover.

Reasonable assurance: the Opinion states that each year's turnover agrees with the audited financial statements or books.

Working capital

Enter the balance sheet date, the source of the figures, and each item classified as a current asset or a current liability. OptiVida totals each side, works out net working capital (current assets less current liabilities) and prints the current ratio.

Reasonable assurance, on the classification the entity's financial reporting framework requires. How the bank uses the figures is the bank's matter, and the certificate says so.

Stock

Enter the stock date, the valuation policy (for example the lower of cost and net realisable value) and the cost formula, and one line per item: category, description, quantity, unit and value. Give the date of Management's last physical verification if there was one; the procedures list changes to match.

Drawing power is worked out only if you enter the sanction's margin:

drawing power = (value of stock − creditors for goods) × (100 − margin) %

Leave the margin blank to certify value alone. Limited assurance: you did not count the stock, and the certificate says so.

Fund utilisation — term loan or subsidy

Enter the sanction letter, the loan or subsidy, the purpose sanctioned and the date the statement runs to. Then:

• Sources of funds — the loan disbursed, any subsidy, the promoters' contribution
• Utilisation — each head of expenditure as sanctioned, with the amount sanctioned and the amount utilised

OptiVida works out the balance per head and the funds not yet utilised. If any remain, say where they are held. Utilisation cannot exceed the funds shown as received — add the source that met the difference.

Reasonable assurance, with the sanction letter as the criterion.

Statutory dues

Enter the date, and one row per statute you are certifying: GST, TDS, TCS, advance tax, provident fund, ESI, professional tax and so on. For each, give the registration number, the period covered, the dues in the books and the amount paid. OptiVida works out the amount outstanding. Explain any outstanding amount in Remarks — not yet due, or under dispute.

Limited assurance, and only over the statutes listed. The certificate states that it does not say the entity has no other dues. Where nothing listed is outstanding, it says so for the statutes listed.

Generating this certificate costs credits. You are shown the exact cost in the confirmation before it runs, and the current price list is on Settings → Credits and billing.