Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Certification by PCS

Madhur (N. A.) (151 Points)

31 May 2010

My queries are, can a Practising Company Secretary certify the following documents,
-Networth certificate required for banks

-certificate for value of fixed assets to be submitted with DIC for subsidy

-certificates required for project finance, term loan or cash credit

It will be great help if you quote the relative circular etc.

Reply
Follow
Share

4 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 31 May 2010

As per my knowledge there is no specific circular. However a PCS can certify the above documents if required by the relevant statute or there is no restriction as such for the certification by PCS. Restriction may be put by the statute by mentioning specific certifying authority/professional.

For example if as per the statute there is a specific requirement that Net Worth certificate must be certified by the statutory auditor of the company then a PCS cannot certify the same. This is my personal opinion. Wait for other expert opinions.

Thanks

Upgrade to CAclubindia Pro. Subscribe Now!

vivek (CS) (751 Points)
Replied 01 June 2010

As far as i know there is no where specificaly mentioned the authority which should certify but the word competent professiobnal or practicing CA/CS/CWA/lawer is being used, undoubtedly it can be done by a PCS. But still to whom you are going to submit the same might ask for CA certificate then you will have to satisfy the concerned.

vivek (CS) (751 Points)
Replied 01 June 2010

For your kind consideration a extract from ICAI site, u might have read it earlier, you may convince:-

Regarding Certification of Networth Certificate (02-03-2007)

Announcement

Regarding Certification of Networth Certificate

The Bombay Stock Exchange Vide Exchange Notice No 20061031-21 dated October, 31, 2006 has given authorization to certify the Networth Certificate by the Practising Company Secretary. Hitherto, the said certificate was certified by the Chartered Accountants. The Institute made a representation to the BSE and SEBI highlighting the sensitivity of the matter and basis of professional education and training required for which the Chartered Accountants alone are duly qualified, trained and experienced.

The Bombay Stock Exchange in their response to our representation has stated that more than 90% of the Networth Certificates received by them from the trading members are mainly certified by qualified Practising Chartered Accountants. Further, they have stated that the Practising Company Secretaries can certify the Networth Certificates only and the audited accounts from which networth certificates are prepared, are still required to be certified by the Practising Chartered Accountants only.

Madhur (N. A.) (151 Points)
Replied 02 June 2010

Thanks Vivek for the info, I am aware about certification in BSE & NSE, but specificaly i wan to ask about Banks. Its will be greatful if you find out some info about certification of Netowrth to be submitte to Banks, DIC, etc. Other learned members please advice highly solicited