12 May 2010
what is solvency certificate,we are planning to export the material to nepal we have taken b1 form but the excise department is asking to take solvency certificate from c.a kindly tell me the meaning as well as the format so that i can tell my c.a
12 May 2010
In the given scenario, my view is that they are asking for the solvency i.e the financial strength of the firm duly certified from your cA. Solvency here means to prove that the firm is financially sound, capable of delivering the order, have enough working capital to meet its committments and has capacity to fulfill its orders and committment.
My view is to ask your CA to comment upon the financial status of your firm on the basis of the last financial statements, current trends, your future plans, prospects for growth, credit worthiness and goodwill in the market.
For the format, you can search the file section. I think Your CA would have the format or way to provide you the certificate.
12 May 2010
In some cases, Solvency certificate is required from bank in which party have account.In which Bank write his views on the basic of transaction made in accounts.
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