Turnover Certificate for Tender/ e-Tendering: A Complete Guide
What is a Turnover Certificate?
A Turnover Certificate is an essential financial document that certifies a company’s total revenue over a specific period, usually the last three financial years. This certificate is often required when bidding for tenders or e-tendering processes, as it helps authorities assess a bidder’s financial stability and capacity to execute the project.
Why is a Turnover Certificate Required for Tendering?
Government and private organizations use turnover certificates to evaluate the financial credibility of companies participating in tenders. A higher turnover generally indicates financial strength and a company’s ability to handle large-scale projects. The key reasons why a turnover certificate is required include:
- Financial Credibility Check – Ensures the bidder has the necessary financial strength to execute the project.
- Compliance with Tender Requirements – Many tenders set a minimum turnover requirement to qualify.
- Verification of Business Stability – Demonstrates the bidder’s financial health and stability.
- Eliminating Non-Serious Bidders – Helps in filtering out financially weak entities from competitive bidding.
Who Issues a Turnover Certificate?
A Chartered Accountant (CA) is the authorized professional to issue a turnover certificate. Only a Practicing CA providing certification services can issue a Turnover Certificate. The CA verifies the financial statements, including audited profit & loss accounts and balance sheets, before certifying the turnover figures. In some cases, tender authorities may request the certificate to be digitally signed for authentication.
Key Information Included in a Turnover Certificate
A standard turnover certificate contains the following details:
- Company Name & Address – Legal name and registered office address.
- Financial Year(s) Covered – Usually the last three years.
- Annual Turnover Amounts – Year-wise breakup of turnover.
- Certification by Chartered Accountant – CA’s signature, membership number, and seal.
- Date of Issue – Date on which the certificate is issued.
Sample Format of a Turnover Certificate
TO WHOMSOEVER IT MAY CONCERN
This is to certify that M/s [Company Name], having its registered office at [Address], has recorded the following turnover as per its audited financial statements:
| Financial Year | Turnover (in INR) |
|---|---|
| 2023-24 | ₹X,XX,XX,XXX |
| 2022-23 | ₹X,XX,XX,XXX |
| 2021-22 | ₹X,XX,XX,XXX |
The above turnover figures are verified based on the audited books of accounts and financial statements of the company.
This certificate is issued at the request of the company for the purpose of participating in tender/e-tendering processes.
Signature:
[Chartered Accountant’s Name]
Membership No.: [XXXXXX]
[CA Firm Name]
UDIN:
Date: [DD/MM/YYYY]
Seal & Stamp
How to Obtain a Turnover Certificate?
To obtain a turnover certificate, follow these steps:
- Prepare Financial Statements – Ensure your company’s audited balance sheets and profit & loss accounts are available.
- Consult a Chartered Accountant – Approach a practicing CA to verify and certify your turnover details.
- Provide Necessary Documents – Share financial statements, tax filings, and other relevant documents.
- Receive the Signed Certificate – The CA will issue the certificate with their signature, seal, and membership details.
Common Mistakes to Avoid
Providing Unaudited Financial Data – Always ensure that the turnover figures are based on audited accounts.
Not Checking Tender Requirements – Different tenders may have specific formats or additional certification needs.
Delays in Certificate Issuance – Obtain the certificate well in advance to avoid last-minute tender submission issues.
Conclusion
A Turnover Certificate plays a very crucial role in tender and e-tendering processes. It serving as proof of a company’s financial capacity. It is important to obtain this certificate from a qualified Chartered Accountant and ensure compliance with tender requirements. By maintaining proper financial records and getting timely certification, businesses can enhance their credibility and improve their chances of securing contracts.
If you need a Turnover Certificate for a tender, consult a Practicing CA only to ensure hassle-free participation in bidding processes