UDIN: Advanced idea to control malpractices

Vikas Sharma 
on 22 July 2019


Several times it has been noticed that non-CAs has been misrepresenting themselves as ICAI member and offering certification services to numerous Authorities and Stakeholders. Such malpractices started bringing a question on the authenticity of financial documents/certification done by actual ICAI Members in practice.

Considering the rise in a number of complaints received by ICAI, the Professional Development Committee of ICAI has come out with an inventive idea of UDIN i.e. Unique Document Identification Number.

What is UDIN?

Unique Document Identification Number (UDIN) is 18-Digits system generated unique number for every document certified/attested by Practicing Chartered Accountants (CAs). It will allow numerous Stakeholders and third parties to check the genuineness of the documents and will secure the certificates certified by practising Chartered Accountants.

Applicability of Unique Document Identification Number (UDIN):

From 1st February 2019, it is compulsory for all practicing Chartered Accountants (CAs) to generate and obtain UDIN for all Certificates issued, containing financial information or any other contents; which are certified by them to be True and Fair.

UDIN cannot be made in the name of CA Firm and it has to be obtained only by practicing CAs holding full-time Certificate of Practice (COP). In case of Partnership firm or LLP, signing partner has to generate UDIN in his name. UDIN can’t be obtained by any other partner instead of signing Partner

UDIN is applicable not only to manually signed certificates but digitally signed / online certificates also.

Practicing Chartered Accountants holding full-time COP has to follow the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) issued by AASB (Auditing and Assurance Standard Board) of ICAI.

Exception to UDIN:

However practicing Chartered Accountants (CAs) have to generate and obtain UDIN for all certificates, following are a list of certificates for which UDIN is not made mandatory:

  • Auditor's Opinion/Reports issued under any Statute to any entity or any person (e.g.: Tax Audit, Transfer Price Audit, VAT Audit, GST Audit, Company Audit, etc.)
  • Valuation Reports,
  • Quarterly Review Reports,
  • Limited Review Report
  • Information System Audit,
  • Forensic Audit,
  • Revenue / Credit / Stock Audit,
  • Borrower Monitoring Assignments,
  • Concurrent / Internal Audit and the like,
  • Any report of what so ever nature issued including Transfer Price Study Report, Viability Study Report, Diligence Report, Due Diligence Report and Management Report, etc.

Options available while generating UDIN:

While generating UDIN, members will have to select one of following from the dropdown list:

1

Certificates issued on the basis of Financial books of accounts and annual financial statements-Capital Contribution Certificate/net worth certificate

17

Certification under the Income-Tax laws for various Deductions, etc.

2

Certificates issued on the basis of Financial books of accounts and annual financial statements - Turnover Certificate

18

Certification for claim of refund under GST Act and other Indirect Taxes.

3

Certificates issued on the basis of Financial books of accounts and annual financial statements -Working Capital Certificate/Net Working Capital Certificate

19

Certification under Exchange Control legislation for imports, remittances, ECB,DGFT,EOU, etc

4

Certificates issued on the basis of Statutory records being maintained under Indian Companies Act, 2013 and applicable provisions

20

Certificates in relation to initial Public Issue/compliances under ICDR and LODR.

5

Certification of Fair Values of Shares of Company for the scope of merger / de-merger, Buy Back, Allotment of further shares and transfer of shares from resident to non-resident.

21

Certificate issued by Statutory Auditors of Banks

6

Certificates for Foreign Remittance outside India in form 15CB.

22

Certificate issued by Statutory Auditors of Insurance Companies

7

Net worth Certificates for Bank finances

23

Additional Certification by Concurrent Auditors of Banks not forming part of the concurrent audit assignment

8

Net worth Certificates for Bank Guarantee

24

Certificate of Short Sale of securities issued by Concurrent Auditors of Treasury Department of Banks

9

Net worth Certificates for Student Study Loan

25

Certificate of physical verification of securities issued by Concurrent Auditors of Treasury Department of Banks

10

Net worth Certificates for Issuance of Visa by Foreign Embassy

26

Certificate issued for KYC purpose to banks confirming sole proprietorship

11

Certificate in respect of Liquid Asset under Section 45-IB of RBI Act, 1945

27

Certificate Regarding Sources of Income

12

Certification of arm’s length price u/s 92 of the income Tax Act, 1961.

28

Certificates for Claiming Deductions and Exemptions under various Rules and Regulations

13

Certificates for funds/ Grants utilisation for NGO’s

29

font-sizee: Certificates issued under LLP Act

14

Certificates for funds/ Grants utilisation for Statutory Authority

30

RBI Statutory Auditor Certificate for NBFCs

15

Certificates for funds/ Grants utilisation Under FERA/FEMA/other Laws

31

Certificate issued under RERA

16

Certificates for funds/ Grants utilisation Charitable trust/institution

32

Others

Other important information with regards to UDIN:

  • UDIN is to be generated for Assignment and same UDIN is to be used in all documents signed under that assignment. No need of multiple UDIN.
  • There is no restriction on number of UDIN generated in a day/month/year.
  • Generation of UDIN is free and has no charges.
  • UDIN is secure and it does not contain information about the client.
  • UDIN has to be generated at time of signing the certificates or within 15 days from date mentioned in certificates. No option to generate UDIN in advance basis.
  • No documents or attachments has to be uploaded while generating UDIN.
  • UDIN is to be generated only once for original certificates. In case client asks for duplicate certificates, same UDIN can be mentioned.
  • UDIN has to be mentioned after every signature and membership number. No need to mention it on every page or start of certificates.
  • UDIN has no expiry, unless revoked
  • Revocation / Cancellation of UDIN can be done by members by providing an appropriate narration. There is no time limit for revocation.
  • Disciplinary proceedings as per the Second Schedule Part II of The Chartered Accountants Act, 1949 can be taken against members who do not adhere to the requirement of UDIN

Source of information: https://udin.icai.org


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