As per the notification no. RB-120 issued by RBI dated July 7, 2004 Indian party is required to submit form APR for is foreign JV/WOS within 60 days from the end of statutory period as prescribed by the laws of the host country.

Text of Para 15(iii) of the notification reproduced below:

“15. Obligations of the Indian Party
An Indian Party, which has acquired foreign security in terms of the Regulations in Part- I, shall –

(iii) submit to the Reserve Bank every year within 60 days from the date of expiry of the statutory period as prescribed by the respective laws of the host country for finalisation of the audited accounts of the Joint Venture/Wholly Owned Subsidiary outside India or such further period as may be allowed by Reserve Bank, an annual performance report in form APR in respect of each Joint Venture or Wholly Owned Subsidiary outside India set up or acquired by the Indian Party and other reports or documents as may be stipulated by the Reserve Bank.”

Further, RBI issued circular RBI/2011-12/473 dated March 28, 2012 in which certain points were liberalised. Point no 6 talks about APR in which it is written that if the accounts of foreign JV/WOS are not subjected to audit as per the laws of host country than the auditor of Indian auditor may certify the true and fair view of the foreign JV/WOS based on unaudited annual accounts adopted and ratified by the Indian party.

Text of point 6 of the circular reproduced below:


“6. Submission of Annual Performance Report
Presently, Regulation 15(iii) of the Notification prescribes that Indian party needs to submit to the Reserve Bank through the designated Authorised Dealer bank every year an Annual Performance Report in Form ODI Part III in respect of each Joint Venture or Wholly Owned Subsidiary outside India, set up or acquired by the Indian party, after the finalization of the audited accounts of the Joint Venture / Wholly Owned Subsidiary outside India. Where the law of the host country does not mandatorily require auditing of the books of accounts of JV / WOS, the Annual Performance Report (APR) may be submitted by the Indian party based on the un-audited annual accounts of the JV / WOS provided:
a. The Statutory Auditors of the Indian party certifies that ‘The un-audited annual accounts of the JV / WOS reflect the true and fair picture of the affairs of the JV / WOS’ and
b. That the un-audited annual accounts of the JV / WOS has been adopted and ratified by the Board of the Indian party. “


In the case of XYZ Limited the accounts of foreign subsidiaries are neither audited in accordance with the laws of host country, nor certified by stat auditor of the company. These accounts are audited by the other Indian auditors in accordance with Indian GAAP.

My point is can we rely on such accounts and issue APR

Hi......
I want to know that is there any possibility to make inter-state purchase from unregistered dealer like it is possible in case of intra-state purchase.

I would really appreciate, if I get the reply at the earliest.

A company increase its paid up share capital in year 02/02/2011 but didn't appoint cs yet. do you know prosecution or any other solution for that.

after increasing paid up share capital being 70000000

I am ipcc student and I had given my 1st group examination in may 13. I want to know what is the last date for registration for articleship with icai so that the final attempt is not delayed?

please reply elaborately and clearly.

My company's Roc Registration is in Mumbai. We are into builder & developers. Now our project is running into Gujarat. So Vat registration should be for which state is required. which state's vat rules will be applied to our this project.
please guide.

depreciation is provided on net block or gross block?how are values in gross block,depreciation and net block of previous year treated in current year??

I registered under IPCC 2009 and i can start articleship after passing 1st group only and as per new IPCC rule we can apply for articleship before exam. can anyone give me idea about this am i eligible for this new procedure ???

Hi,
1)Can loss making pvt ltd co. issue shares at premium.
2) the directors of company decided to issue shares at face value of Rs.10/- and at premium Rs.90/-.

does it possible?

Dear Experts, please suggest the correct accounting for import purchases w.r.t
Date of recording transaction as the material or asset is received in the factory after the date of BOE by transport.
Rate to be adopted as per AS-11 as to what should be the transaction date for accounting purpose, because some people apply CBEC rate for accounting too.

Bill for Clearing and forwarding and freight charges are issued/received almost one month after BOE.

Whether there should be separate date for accounting clearing and forwarding charges other than the date adopted for raw material purchase.

please clear service tax rate on work contract service. can i take service tax set.off on repair of building. how to calculate service tax on work contract service