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UDIN : Innovative concept to curb malpractices

Sahil Jain (FAFD, DISA, CA) 
on 02 February 2019

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Many times it has been noticed that non-CAs has been misrepresenting themselves as CA member and providing certification services to various Authorities and Stakeholders. Such malpractices started bringing a question on the genuineness of financial documents/certification done by actual CA Members in practice.

Seeing an increase in a number of complaints received by ICAI, the Professional Development Committee of ICAI has come out with an innovative concept 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. It will enable various Stakeholders and third parties to check the authenticity of the documents and will secure the certificates attested/certified by practising CAs.

Applicability of UDIN :

From 1st February 2019 it is mandatory for all practising Chartered Accountants 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 or True and Correct.

UDIN cannot be generated in name of Firm and has to be obtained only by practising CAs holding full time COP. In case of Partnership firm or LLP, signing partner has to generate UDIN in his name. No other partner can obtain UDIN instead of signing partner.

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

Practising CAs 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 :

Though practising Chartered Accountants have to generate and obtain UDIN for all certificates, following are 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, Management Report, etc.

Dropdowns / Options available while generating UDIN :

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


1

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

2

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

3

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

4

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

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.

6

Certificates for Foreign Remittance outside India in form 15CB.

7

Net worth Certificates for Bank finances

8

Net worth Certificates for Bank Guarantee

9

Net worth Certificates for Student Study Loan

10

Net worth Certificates for Issuance of Visa by Foreign Embassy

11

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

12

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

13

Certificates for  funds/ Grants utilisation  for NGO’s

14

Certificates for  funds/ Grants utilisation  for Statutory Authority

15

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

16

Certificates for  funds/ Grants utilisation  
Charitable trust/institution

17

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

18

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

19

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

20

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

21

Certificate issued by Statutory Auditors of Banks

22

Certificate issued by Statutory Auditors of Insurance Companies

23

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

24

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

25

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

26

Certificate issued for KYC purpose to banks confirming sole proprietorship

27

Certificate Regarding  Sources of Income

28

Certificates for Claiming Deductions and Exemptions under various Rules and Regulations

29

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Certificates issued under LLP Act

30

RBI Statutory Auditor Certificate for NBFCs

31

Certificate issued under RERA

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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