7 Quick things every CA should know about UDIN


The Institute of Chartered Accountants of India in it's endeavour to make sure that all the businessmen and clients who obtain any certificate from all the Chartered Accountants are in no manner forget, has introduced a Unique concept of - Unique Document Identification Number.

It has been noticed that financial documents/ certificates attested by third person misrepresenting themselves as CA Members are misleading the Authorities and Stakeholders. ICAI is also receiving number of complaints of signatures of CAs being forged by non CAs. To curb the malpractices, the Professional Development Committee of ICAI has implemented in phased manner an innovative concept of UDIN i.e. Unique Document Identification Number. All Certificates are being made mandatory with effect from 1st February, 2019 as per the Council decision taken at its 379th Meeting held on 17th – 18th December, 2018.

So, now if you are a CA or an Article or any person receiving any certificate from a CA, it is very crucial that Document is having a UDIN. We being a CA, very better knows that it's our smart articles only who usually prepares such certificates and we verify and signs them. So, it is equally relevant for each & every articles assistant also to very minutely understand about UDIN.

So, there we go:

7 SMART things EVERY PERSON must know about UDIN:

1. FORMAT: 18-digit number:

Firstly, it is very relevant to understand the format of the number that would be known as UDIN. If you have a proper understanding of this number format, you can also check it by just viewing the number and verify that whether it is correct or not.

The 18- digits UDIN (YY MMMMMM AANNNAANNN) will be like;

19304576AKTSBN1359

Wherein;

First 2 Digits are YY - Last 2 digits of the Current Year (19 in this case)

Next 6 Digits are MMMMMM – ICAI's Membership No. (304576 in this case)

Next 10 Digits are AANNNAANNN –Alpha-numeric generated randomly by the system (AKTSBN1359).

The UDIN so indicated on the certificate can be searched through the search option on UDIN Portal by sharing few details such as Name of the Authority, Mobile Number and Email of the person searching the UDIN. However, they are not required to register themselves on the UDIN Portal.

2. When to generate?

Secondly, now the timing of generation of this UDIN is equally significant.

UDIN is to be generated at the time of signing the Certificate.

However, the same can be generated within 15 days of the signing of the same (i.e within 15 days from the date mentioned at Certificates and not beyond that)

There is no option to generate UDIN in advance. However, there is an option given to generate UDIN within 15 days of the signing of the certificate. 

3. From 1st February 2019, UDIN is mandatory for all the certificates? What is meant by Certificates?

Thirdly, now we need to have crystal clear understanding of the distinction between items that are Covered and Non-Covered Items. It would be mandatorily required to be generated for ALL the certificates that are covered for UDIN.

Covered Items:

It is mandatory to obtain UDIN for ALL Certificates* issued where the Financial Information/related contents is CERTIFIED as True and Fair / True and Correct.

Some Illustrations:

  1. Capital Contribution Certificate/net worth certificate (ALL NWC)
  2. Turnover Certificate
  3. Working Capital Certificate/Net Working Capital Certificate
  4. Certification of Fair Values of Shares of Company
  5. Certificates for Foreign Remittance outside India in form 15CB.
  6. Certification of arm's length price u/s 92 of the Income Tax Act, 1961.
  7. Certificates for  funds/ Grants utilisation Charitable trust/institution
  8. Certification for a claim of refund under GST Act and other Indirect Taxes.
  9. Certificate issued for KYC purpose to banks confirming sole proprietorship
  10. Certificate Regarding  Sources of Income
  11. Certificate issued under RERA
  12. Others

Non-Covered Items:

  1. Auditor's Opinion/Reports issued by the Practicing Chartered Accountant under any Statute w.r.t. any entity or any person (e.g.: Tax Audit, Transfer Price Audit, VAT Audit, GST Audit, Company Audit, Trust Audit, Society Audit, etc.,
  2. Valuation Reports,
  3. Quarterly Review Reports,
  4. Limited Review Report
  5. Information System Audit,
  6. Forensic Audit,
  7. Revenue / Credit / Stock Audit,
  8. Borrower Monitoring Assignments,
  9. Concurrent / Internal Audit and the like,
  10. Any report of what so ever nature issued including Transfer Price Study Report, Viability Study Report, Diligence Report, Due Diligence Report, Management Report, etc.

       Importantly, UDIN is not required for certified true copies.

4. Whether UDIN will be applicable only for manually signed documents or also for digitally signed certificates being uploaded online such as Form 15 CB?

UDIN will be applicable both for manually as well as digitally signed Certificates / uploaded online. In the case of digitally signed / online certificates, UDIN has to be generated and retained for providing the same on being asked by any third party/ authority.

Yes, even for DIGITALLY signed certificate too UDIN has to be generated and retained.

5. Registration Procedure:

But before understanding the registration the procedure, let's first understand that who has to be Registered on UDIN? A Firm or a Member ?

The, a Partnership Firm cannot be registered on the UDIN. It's only that it's members of ICAI having full-time Certificate of Practice can register on UDIN Portal.

Now, moving on to a simple 3 Step Registration process:

Step 1: Visit website: udin.icai.org; Click “Member Registration” or click at “For the first time sign up, click here”

Step 2: Registration window will be opened. After entering Six-digits Membership No., Date of Birth and Year of Enrolment. Click “Send OTP”. An OTP will be sent to the registered Mobile and Email of the Member.

Step 3: On confirmation of OTP as received, a Username and Password will be sent to the registered Email and Mobile No.

Also, there is no need for fresh registration for every financial year.

6. How to now actually generate a Unique Document Identification Number (UDIN)?

  • Go to udin.icai.org, LOGIN by entering Username and Password. Click “Generate UDIN” from the menu bar.
  • Select the Document type from the drop-down menu.
  • Enter Date of Signing Document i.e. the date of signing/ certifying the document.
  • Then Enter 2 Financial Figures i.e. any Financial Figures from the document such as Turnover/Net Worth etc. In case, there is no Financial Figure in the Certificate, Zero (0) is to be mentioned in Financial Figure and in its Particulars mention “There is no Financial Figure in Certificate”.
  • Then Enter the DOCUMENT DESCRIPTION of the Figure i.e. Turnover/ Net Worth etc. to be filled in 10 to 50 characters.
  • Then Click the button “Send OTP”. After this an OTP will be received on Registered Mobile and Email of the Member. Then Enter OTP as received and click “Preview”. In Preview details entered for generating the UDIN will be displayed. If there is any change/error in the content, click “Back” button, or else, click “Submit”.
  • Thereafter, 18 Digit UDIN will be generated and that UDIN can be used for mentioning on the Certificate for which it has been generated either by printing (watermarked) the same or by handwritten or printed. If it is being handwritten or printed, it can be mentioned after Signatures and Membership Number of the Member.

UDIN shall be mentioned after every Signature and Membership Number of the Member.UDIN can be revoked by mentioning the reason. Further, there is no time limit for allowing revocation. with narration.

7. What is the consequence of not generating UDIN which are made mandatory by ICAI in respective phases?

A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct if he -

Clause (1) contravenes any of the provisions of this Act or the regulations made thereunder or any guidelines issued by the Council.

This clause is very important. It requires every member of the Institute to act within the framework of the Chartered Accountants Act and the Regulations made thereunder. Any violation either of the Act or the Regulations by a member would amount to misconduct

Professional misconduct has been defined in part I, II and III of the First Schedule; and part I and II of the Second Schedule.

UDIN generation is being made mandatory as per the Council Decision hence not generating UDIN for mandatory documents will amount to non-adherence of the Council Decision and may attract disciplinary proceedings as per the Second Schedule Part II (Professional misconduct in relation to members of ICAI in general) of The Chartered Accountants Act, 1949.

So, this was all you MUST know being a member of ICAI or an Aspiring CA or being any person who obtains any certificate from a CA. Share this resource with all your Professional colleagues and that we continue our endeavour to follow the best ethical practices and comply with all regulations laid down by ICAI.

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CA Kaival Shah 
on 06 February 2019
Published in Career
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