Book Debts Certificate Format for Bank 2026
CERTIFICATE OF BOOK DEBTS
To,
The Branch Manager
{{bank_name}}
Borrower: {{client_name}} (PAN: {{client_pan}}), {{client_address}}
Facility: {{facility_description}}
1. This certificate is issued at the request of {{client_name}} ("the borrower") in accordance with the terms of our engagement letter dated ____________, for submission to the Bank for the computation of drawing power against book debts under the above facility.
Management's Responsibility
2. The preparation of the Statement of Book Debts as at {{as_at_date}} set out below ("the Statement"), including the maintenance of the books of account, the debtors' ledger and the invoices on which it is based, the ageing of the debts and the identification of debts that are not eligible under the Bank's sanction terms, is the responsibility of the management of the borrower.
Our Responsibility
3. Our responsibility is to certify whether the particulars in the Statement are in agreement with the books of account and records of the borrower. We conducted our examination in accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) issued by the Institute of Chartered Accountants of India, which requires that we comply with the ethical requirements of the Code of Ethics issued by the Institute, and we have complied with the applicable quality control requirements for firms that perform such engagements.
4. For this purpose we have: (a) traced the total of the debtors' ledger balances as at {{as_at_date}} to the trial balance; (b) checked the ageing of the balances, on a test basis, from the invoices, by reference to ____________ [invoice date / due date, as the sanction letter requires]; (c) verified, on a test basis, the invoices, delivery evidence and e-way bills / GST returns for the debts outstanding and the receipts in the bank statements after {{as_at_date}} up to ____________; (d) identified, from the related-party records and information given to us, debts due from group concerns and related parties; and (e) read the sanction letter dated ____________ for the cover period, margin and exclusions. ____________ [state whether direct balance confirmations were obtained, and from how many debtors; if none, say "We have not obtained direct confirmation of balances from the debtors."]
Statement of Book Debts as at {{as_at_date}}
A. Age-wise analysis
| Age of debt | Amount (₹) |
|---|
| 0 to 30 days | |
| 31 to 60 days | |
| 61 to 90 days | |
| 91 to 180 days | |
| Over 180 days | |
| Total book debts as per books (A) | 0 |
B. Drawing power against book debts
| Particulars | Amount (₹) |
|---|
| Total book debts as per books (A) | 0 |
| Less: Debts outstanding beyond the cover period of {{cover_period}} | |
| Less: Debts due from group concerns / related parties | |
| Less: Disputed or doubtful debts | |
| Less: Debts against bills discounted / factored | |
| Less: Other debts excluded by the sanction terms | |
| Total ineligible debts (B) | 0 |
| Eligible book debts (A − B) | 0 |
| Less: Margin at {{margin_percent}} | |
| Drawing power against book debts | 0 |
C. Debtor-wise particulars (major debtors; full list annexed)
| Name of debtor | GSTIN | 0–30 days | 31–60 days | 61–90 days | 91–180 days | Over 180 days | Total (₹) |
|---|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Other debtors (as per list annexed) | | | | | | | |
| Total | | | | | | | |
Certificate
5. Based on our examination as above and the information and explanations given to us, we certify that the particulars of book debts of {{client_name}} as at {{as_at_date}} set out in the Statement, including their age-wise analysis, are in agreement with the books of account and records of the borrower produced before us, and that the eligible book debts and the drawing power have been computed from those particulars in accordance with the cover period, exclusions and margin stated in the Bank's sanction letter.
6. Based on the information and explanations given to us and the records examined by us, the book debts included in the Statement arise from sales / services in the ordinary course of business, and we have not come across any charge created on them in favour of any lender other than ____________ [the Bank / the consortium / "as disclosed below"].
7. This certificate does not constitute an audit or a review under the Standards on Auditing, and we express no opinion on the realisability of the book debts or on the financial statements of the borrower as a whole.
Restriction on Use
8. This certificate is addressed to and provided to the Bank solely for the purpose stated in paragraph 1 and should not be used by any other person or for any other purpose. We do not accept or assume any liability or duty of care for any other purpose or to any other person to whom this certificate is shown or into whose hands it may come without our prior consent in writing.
Place: __________________
Date: 1 October 2026
For {{firm_name}}
Chartered Accountants
Firm Registration No.:
_______________________________
{{engagement_partner}}
Partner
Membership No.: {{icai_membership_no}}
UDIN: ____________________
Usage Notes
- Take the cover period, the margin and the list of excluded debts from the current sanction letter, not from last quarter's certificate. Cover periods of 90 days are common, but the sanction governs.
- A debt can fail more than one test. Deduct it once — the form asks for group and disputed debts "within the cover period" for that reason.
- Credit balances in debtor accounts (advances from customers) should not be netted against other debtors. Show debtors gross and report advances separately if the Bank asks.
- Reconcile total book debts with the debtors figure in the latest stock and book-debt statement filed by the borrower for the same date. If the two differ, the Bank will ask why before it reads anything else.
- Record in the working papers the invoices and subsequent receipts tested, and the basis of selection. Attach the full debtor-wise ageing, signed by the borrower, as an annexure.
