Ageing of Debtors and Creditors Certificate for Banks and Due Diligence

An ageing schedule reveals how good a business's receivables and payables really are. Patron Accounting has supported over 10,000 clients, and our CAs certify ageing analyses with UDIN.

We prepare a CA-certified ageing of debtors and creditors, with clear age buckets and a valid UDIN, giving banks and acquirers independent assurance of the quality of your working capital.

Content is reviewed quarterly for accuracy.

The same certified ageing serves two distinct, high-value buyers.

• Bank and working-capital assessment: lenders use ageing to fix and revise credit limits and drawing power, counting good receivables and discounting old ones.
• Due diligence: PE investors and strategic acquirers use ageing to test the quality of receivables and payables, collectibility, and any hidden risk.
• Schedule III disclosure: the basis for the ageing companies disclose in their financials.
• Internal review: management's own view of collections and payments.

• Debtor (trade receivable) ledger with invoice dates.
• Creditor (trade payable) ledger with bill dates.
• MSME status of suppliers, where known.
• Latest financials or trial balance.
• The bank or due-diligence requirement.

Tell us the date and purpose so we age the balances correctly and to the right format.

What the certificate contains: the business name, the date, and the basis of ageing; debtors ageing by bucket, with totals; creditors ageing by bucket, with MSME dues shown separately; and the CA signature, seal, membership and firm numbers, and UDIN.

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free Ageing of Debtors and Creditors Certificate consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

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"Patron Accounting gives the best service related to all account handling of our firm. She files all returns timely and is most kind and respectful towards us." - Nikhil Nimbhorkar, Google Review

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Outcome proof: a company in a fundraising process needed its receivables and payables aged for the acquirer's due diligence; we reconciled the ledgers, certified the debtor and creditor ageing with the MSME dues separated, and flagged the long-outstanding balances, giving the diligence team a clear, credible view of the working capital.

With offices in Pune, Mumbai, Delhi, and Gurugram, Patron Accounting serves clients across India - both in-person and remotely.

A certified ageing works alongside these closely related services:

• Stock Audit - the stock statement and inventory verification banks use alongside ageing for drawing power.
• Net Worth Certificate for Business Loan - the working-capital and lending certificate, supporting CMA-style assessment.
• Internal Audit - independent review of receivables and payables controls.
• Statutory Audit - the Schedule III disclosure base.
• Accounting Services - the ledgers and bookkeeping behind the ageing.

For a lender, receivables are collateral. A bank computes drawing power from good receivables, usually counting debtors only up to 90 days, so the age profile directly affects how much working capital a business can draw, which is why ageing underpins the stock statement and the CMA data. A receivables book heavy with old, overdue amounts is worth far less as security than a clean, current one.

For an acquirer or PE investor, ageing is a window into the real quality of the business. A certified ageing reveals whether reported receivables are genuinely collectible or padded with stale, doubtful balances, and whether payables are being stretched, including to MSME suppliers who are protected by the 45-day payment rule. In a transaction, these findings feed directly into the working-capital adjustment and the price. A CA-certified ageing gives both the lender and the acquirer numbers they can trust, independently verified and carrying a UDIN, rather than an unverified internal report.

The ageing disclosure framework sits under Schedule III to the Companies Act 2013, as amended in 2021; for the format and the MSME-versus-others split, refer to the Ministry of Corporate Affairs (mca.gov.in). A CA-certified ageing gives independent assurance of the age profile and quality of receivables and payables; it supports a bank's working-capital assessment and a buyer's due diligence, but it does not by itself value the business or guarantee that any particular receivable will be collected.

In a financing or a deal, an unverified internal ageing invites doubt: a lender discounts what it cannot trust, and a diligence team treats unexplained old balances as risk, pulling down the working-capital adjustment and the price. A CA-certified ageing, reconciled and clearly flagging overdue and MSME items, removes that doubt and lets the numbers speak, protecting both your borrowing capacity and your valuation.

Get a free, no-obligation quote. Call +91 945 945 6700 or WhatsApp our team today.

Whether a bank is sizing your limit or an acquirer is testing your books, the age profile of your receivables and payables is what they scrutinise. Patron Accounting prepares a CA-certified ageing of debtors and creditors, reconciled, clearly bucketed, with the MSME split and a UDIN.

The result is lenders and acquirers seeing the true, verified quality of your working capital. Call +91 945 945 6700, WhatsApp us, or request a free consultation.