Which terms does a net worth and solvency glossary define?

It defines the vocabulary that appears on net worth, solvency and net owned fund certificates. That spans four groups: how net worth is computed, how certification works, the terms lenders and courts use, and the documents a chartered accountant reads as evidence. Each entry defines one term and links to the page where the term is applied.

Why do lenders, embassies and regulators define net worth differently?

Because each is measuring a different risk. Section 2(57) of the Companies Act 2013 gives a statutory definition for companies. The Reserve Bank applies its own net owned fund formula to NBFCs. A lender strips intangibles to reach tangible net worth. The arithmetic is similar; the inclusions and deductions are not.

Are these definitions the same as the ones in a certificate?

They explain the terms; the certificate states which definition it applied. A document issued for a Reserve Bank filing follows the regulator's computation, while one for a tender follows the tender's condition. Reading a glossary entry tells you what a term means, not which meaning a particular certificate adopted.

48 terms · CA-reviewed definitions

Net Worth and Solvency Glossary for Indian CA Certificates

Definitions of the net worth, solvency and net owned fund terms that appear on CA certificates in India, grouped by what each term actually affects.

Indian statute and RBI practice CA & CS reviewed Updated for FY 2026-27 Free to use

Terms Grouped by What They Affect

Net Worth Mechanics

10 terms

Tangible Net WorthView definition → Adjusted Net WorthView definition → Contingent LiabilityView definition → Liquid AssetsView definition → LienView definition → PledgeView definition → HypothecationView definition → MortgageView definition → Fair Market Value (FMV)View definition → Statement of AffairsView definition →

Certification

4 terms

Certificate of Practice (COP)View definition → AttestationView definition → Management Representation LetterView definition → Form 15CBView definition →

Visa Finance

6 terms

Proof of Funds (POF)View definition → Blocked AccountView definition → Source of FundsView definition → Liberalised Remittance Scheme (LRS)View definition → Foreign Inward Remittance Certificate (FIRC)View definition → ApostilleView definition →

Lending

9 terms

CollateralView definition → Margin MoneyView definition → Loan-to-Value Ratio (LTV)View definition → Debt Service Coverage Ratio (DSCR)View definition → MoratoriumView definition → Bank Guarantee (BG)View definition → Letter of Credit (LC)View definition → Credit Information Report (CIBIL)View definition → Debt-to-Equity RatioView definition →

Solvency & Courts

7 terms

Solvency RatioView definition → LiquidityView definition → Earnest Money Deposit (EMD)View definition → Performance GuaranteeView definition → SuretyView definition → Succession CertificateView definition → Legal Heir CertificateView definition →

Entity Finance

5 terms

Free ReservesView definition → Securities PremiumView definition → Revaluation ReserveView definition → Slump SaleView definition → Net Worth ErosionView definition →

NBFC & RBI

2 terms

Tier I CapitalView definition → Capital to Risk-weighted Assets Ratio (CRAR)View definition →

Documents

5 terms

Form 26ASView definition → Annual Information Statement (AIS)View definition → Circle RateView definition → Encumbrance CertificateView definition → Stamp DutyView definition →

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