Private limited company net worth certificate, explained
The certificate states the company's net worth as on a date, drawn from its audited financial statements and signed by a practising chartered accountant with a UDIN. Banks ask for it on credit applications, tenders ask for it at the technical stage, and investors and counterparties ask for it in diligence.
How section 2(57) net worth is computed
Section 2(57) does not simply take total assets minus total liabilities. It builds net worth from the capital side of the audited balance sheet and leaves out reserves that do not come from profits or capital actually paid in.
| Included | Deducted | Left out |
|---|---|---|
| Paid-up share capital | Accumulated losses (debit balance of profit and loss) | Revaluation reserve |
| Reserves created out of profits, such as general reserve | Deferred expenditure not written off | Reserve from write-back of depreciation |
| Securities premium | Miscellaneous expenditure not written off | Amalgamation reserve |
| Credit balance of profit and loss |
Illustrative figures only, audited balance sheet as on 31 March 2026:
| Particulars | Amount (₹) |
|---|---|
| Paid-up equity share capital | 25,00,000 |
| Securities premium | 40,00,000 |
| General reserve | 10,00,000 |
| Revaluation reserve (left out; 15,00,000 sits on the balance sheet) | 0 counted |
| Accumulated losses | (18,00,000) |
| Miscellaneous expenditure not written off | (50,000) |
| Net worth under section 2(57) | 56,50,000 |
Book equity on the same balance sheet would be ₹71,50,000, because it includes the revaluation reserve. If a tender asks for net worth "as per the Companies Act", ₹56,50,000 is the figure to certify.
Three situations change the approach. A startup with large accumulated losses can show negative net worth even with healthy funding; we certify the true figure and, where the institution allows, add a note on paid-up capital raised since the balance sheet date. If the institution wants net worth as on a date after the last audit, the figure comes from provisional accounts and the certificate says so, because section 2(57) itself refers to the audited balance sheet. And if a bank or tender defines net worth its own way, for example tangible net worth after deducting intangible assets, we follow its definition and state it on the certificate.
Directors are separate. A director who gives a personal guarantee, or needs a visa or personal loan, gets an individual certificate built from personal assets and loans, which may include the market or book value of their shares in the company on a stated basis. For your company's own filings, see annual ROC filing.
How we prepare your certificate
- Confirm the basis and the date. Section 2(57) unless the bank or tender defines net worth differently, and the date it names.
- Compute from the audited balance sheet. You approve the draft, with the working shown, before signing.
- Sign and issue. Signed by a practising CA, with a UDIN, as a PDF and a hard copy where needed.
Documents we ask for: certificate of incorporation, company PAN, the latest audited financial statements with schedules and notes, the auditor's report, loan statements, and details of any allotment made after the balance sheet date. For a director certificate, that director's PAN, return, bank and investment statements, property papers and loan statements.
Company certificate fee
Our professional fee is from ₹1,499 per certificate. There is no government fee.
| Fee | Amount |
|---|---|
| Regikart professional fee, company net worth certificate with UDIN | From ₹1,499 |
| Director personal certificate, each | From ₹1,499 |
| Government fee | No government fee |
Professional fees exclude GST at 18%. Government fees, where they apply, are paid at actuals to the department and are shown separately. Fees verified on 22 September 2026.
For UDIN, validity and rejection reasons, see our net worth certificate guide. Other certificates a CA signs with a UDIN, such as a turnover certificate, are listed on our CA certificates page.