Turnover Certificate in Chennai

Tamil Nadu tenders under the Transparency in Tenders Act

Procurement by Tamil Nadu departments and public bodies is governed by the Tamil Nadu Transparency in Tenders Act, 1998 and its rules, and bids are submitted on the state's designated e-procurement portal at tntenders.gov.in, developed by the National Informatics Centre. The state began e-submission for tenders above ₹10 lakh as a pilot in October 2007 and extended it to procuring entities under the Act from January 2008. Qualifying criteria in these documents typically include an average annual turnover over a set number of recent years, with the form of proof spelt out in the notice.

Central buyers in Chennai, including PSUs, port bodies and defence establishments, use GeM or their own portals. A GeM bid commonly asks for a minimum average annual turnover over three years and accepts audited balance sheets or a CA certificate. Micro and small enterprises may be exempted from that criterion, depending on the bid.

OEM vendor registration: what Chennai suppliers get asked

Vehicle and equipment makers and their Tier-1 suppliers usually want certified turnover when they register a new vendor and again at periodic reviews, alongside a net worth figure and a list of customers. There is no prescribed format; the customer's vendor form sets the fields. We fill them in as asked, give each year separately, and say whether the figures are audited.

Auto component accounts carry three items that make the books and the GST returns drift apart:

• Retrospective price revisions. An OEM settles a price increase months later, and you raise a supplementary invoice or a debit note in a later period, sometimes the next financial year.
• Credit notes for rejections, line returns and volume discounts, which may be issued after the year end.
• Tooling and development charges recovered from the customer, which may be revenue in the accounts in one year and invoiced in another.

A vendor form or tender asking for turnover as per audited accounts gets ₹1,180.0 lakh. One asking for turnover as per GST returns gets ₹1,130.0 lakh. Both are net of GST, which is never part of turnover on either basis. We keep the reconciliation on file in case the reader compares the certificate with the GST data.

Banks and MSME status

Chennai banks renewing a cash credit limit often want certified sales for the year just closed, before the audit is done. We certify from the books and the filed returns, marked unaudited, and cross-check to bank credits for a part year. Projections and an assessed limit belong in CMA data. For MSME schemes, exports are left out of the turnover count, so an exporting component maker can sit in a smaller category than its revenue suggests. Keep the Udyam registration current if the figures have moved.

Freight forwarders and customs brokers

Logistics businesses near the Chennai and Ennore ports collect large sums from clients that are not their own income: customs duty, port charges and shipping line freight paid on the client's behalf. Where these are incurred as a pure agent under rule 33 of the CGST Rules, they are left out of the value of supply, and in the accounts they are usually treated as reimbursements rather than revenue. The turnover a principal or lender should see is the agency, handling and service income. We certify that, and if the reader also wants the volume of reimbursements, we show it separately and labelled.