20 June 2014
Hello sir,
Greetings from Arun Shanks,
Forwarding the mail from HDFC bank. Please help to understand the notice received.
I spoke to the Mumbai Treasury office of the HDFC, they suggested to ask C.A to understand better as they would well aware of this.
They want this certificate before 30th June.
Please help,
regards,
Arun Shanks.
Statutory Auditors Certificate.
Dear sir/Madam,
we find from our records that you have entered into Foreign exchange derivative contracts with our bank in FY 2013-14 against underlying exposure viz contracted exposure Extract of FEMA regulations:
As per RBI guidelines A.P. (DIR Series) Circular No.32 dated December 28, 2010 issued on Comprehensive Guidelines on Over the Counter (OTC) Foreign Exchange Derivatives and Overseas Hedging of Commodity Price and Freight Risks. in the case of contracted exposure -AD Category I banks must obtain "Quarterly certificates from the statutory auditors of the users, that the contracts outstanding at any point of time with all AD Category I banks during the quarter did not exceed the value of the underlying exposures"
Further, as per RBI guidelines vide A.P. (DIR Series) Circular No.2 dated 04 July 2013, while offering hedging products under the contracted exposure route to their customers may obtain an annual certificate from the statutory auditors to the effect that the contracts outstanding with all AD category I banks at any time during the year did not exceed the value of the underlying exposures at that time.
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