Practical Issues on UDIN generation for Statutory Audit of Companies and important UDIN FAQs

Generation of Unique Document Identification Number (UDIN) is made mandatory for all other audit, assurance and attestation functions by ICAI w.e.f. 1st July, 2019. Therefore this is first year where the statutory auditor of companies (including private limited company) has to ensure generation of UDIN and to mention after every signature and membership number of the member.

I have received various queries with respect to statutory provisions of holding AGM for approval of financial statements as per Companies Act, 2013 and generation of UDIN. The blog aims to cover applicable provisions of Companies Act 2013 and UDIN requirement to address the issues faced by the members to create awareness and support in compliance of the requirement.

1. WHAT IS LAST (DUE) DATE OF HOLDING ANNUAL GENERAL MEETING?

The company shall hold every year Annual General Meeting (AGM) and shall hold within 6 months from the date of closing of the financial year. Therefore, for the company having March year ended, last (due) date of AGM can be 30th September.

Relevant extract of Companies Act 2013:

Section 96 (1) Every company other than a One Person Company shall in each year hold in addition to any other meetings, a general meeting as its annual general meeting and shall specify the meeting as such in the notices calling it, and not more than fifteen months shall elapse between the date of one annual general meeting of a company and that of the next:

Provided that in case of the first annual general meeting, it shall be held within a period of nine months from the date of closing of the first financial year of the company and in any other case, within a period of six months, from the date of closing of the financial year. 

2. HOW MANY DAYS NOTICE PERIOD IS REQUIRED FOR HOLDING GENERAL MEETING?

The company must send the notice at least 21 days before the AGM is held (not including the day the notice is sent or the day of the meeting). In case the notice is being sent through post, than 2 days are required to be considered for delivery period. The Companies Act allows shorter notice for holding AGM if consent has been given by not less than 95% of the members entitled to vote.

Relevant extract of Companies Act 2013:

Section 101(1) A general meeting of a company may be called by giving not less than clear twenty-one days notice either in writing or through electronic mode in such manner as may be prescribed:

Provided that a general meeting may be called after giving shorter notice than that specified in this sub-section if consent, in writing or by electronic mode, is accorded thereto—

(i) in the case of an annual general meeting, by not less than ninty-five per cent. of the members entitled to vote thereat; and

(ii) in the case of any other general meeting, by members of the company—

(a) holding, if the company has a share capital, majority in number of members entitled to vote and who represent not less than ninety-five per cent. of such part of the paid-up share capital of the company as gives a right to vote at the meeting; or

(b) having, if the company has no share capital, not less than ninty-five per cent. of the total voting power exercisable at that meeting:

Provided further that where any member of a company is entitled to vote only on some resolution or resolutions to be moved at a meeting and not on the others, those members shall be taken into account for the purposes of this sub section in respect of the former resolution or resolutions and not in respect of the latter.

3. WHEN TO GENERATE UDIN?

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).

ICAI Announcement (19-09-2019) Extension of time limit of UDIN generation from 15 days to 30 days – One Time Relaxation

In response to the various representations received from Members at large for inability in generating UDIN due to floods in many parts of the Country and related internet issues, the Council at its 386th Meeting held on 18th and 19th September, 2019 has decided to permit generation of UDIN within 30 days in place of 15 days.

Members may kindly note that this is a one-time relaxation available on the Certificate / Report / Document signed between 20th August, 2019 to 31st December, 2019.

Further, UDIN so generated has to be communicated to “Management” or “Those Charged with Governance” for disseminating it to the stakeholders from their end.

4. ILLLUSTRATIVE TIMELINES FOR DATE OF SIGNING OF FINANCIALS AND LAST DATE OF GENERATION OF UDIN: (Based on 15 Days requirement)

Situation Date of Signing Financials Mode of service of Notice of AGM Notice Period Date of AGM Last date of generation of UDIN (after considering 15 days)
I 6th September, 2019 By post ( 2 days) 21 + 2 30th September, 2019 20th September, 2019
II 8th September, 2019 Electronic or reaches on same day 21 + 0 30th September, 2019 22nd September, 2019
III 29th September, 2019 Shorter Notice* Consent of 95% of members entitled to vote is mandatory 30th September, 2019 13th October, 2019
IV Any date till 30th June, 2019 By Any mode 21 + days of service of notice 30th September, 2019 UDIN generation is not mandatory

* Kindly check and confirm with Articles of Association, as AoA may specify a time limit for shorter notice.

5. FORMAT OF CONSENT FOR SHORTER NOTICE

Consent of shareholder for Shorter Notice

(Pursuant to Section 101(1) of Companies Act, 2013)

To

The Board of Directors

Name of the Company

Address

Sub: Consent to convene AGM at shorter notice

Dear Sir,

I/we, (Name of Shareholder), the member/s holding an (Number of shares held) (in words) equity shares of Rs. (face value per share) of the Company as on date representing ……………….% of the total paid-up share capital and also have an entitlement to vote at such meeting, hereby do accord mine/our consent to convene the ensuing Annual General Meeting of the Company on (date of AGM) at shorter notice.

Sincerely,

(Name of the Member)

Date:

Place:

6. FIGURES/ VALUES

For generation of UDIN, it is required to mention Figures/Values. Please find below the summary of the requirement for generation for Statutory Audit, Tax Audit and GST Audit so that UDIN can be generated without any hassle.

(A) Statutory Audit

Sr. No. Particulars Figures/Remarks
1. Financial Year 01-04-2018-31-03-2019
2. PAN of the Assessee Optional
3. Gross Turnover/Gross Receipt Gross Turnover / Gross Income/ Gross Receipt / Gross Earnings/ Gross Revenue etc.
4. Shareholder Fund/Owners Fund Paid up capital + Reserves & Surplus
5. Net Block of Property, Plant & Equipment WDV after reducing depreciation and impairment
6. FRN If practicing in Individual Name than write ‘Not Applicable’ or ‘NA’


(B) Tax Audit

Sr. No. Section 44 AB Other than Section 44AB Figures/Remarks
1. Total Turnover as per Form 3CD - 01-04-2018-31-03-2019
2. Net Profit / Turnover as per Form 3CD - Optional
3. WDV of Fixed Assets - WDV after reducing depreciation and impairment
4. Assessment Year Assessment Year 2019-2020
5. - Particulars
6. FRN FRN If practicing in Individual Name than write ‘Not Applicable’ or ‘NA’
7. PAN of the Assessee PAN of the Assessee Optional

 

(C) GST Audit

Sr. No. Particulars Figures/Remarks
1. Turnover (incl. exports) as per Audited Financial Statements under Clause 5 (A) of Form 9C As per Clause 5 (A) of Form 9C
2. Turnover as declared in Annual Return (GSTR9) under Clause 5 (Q) of Form 9C As per Clause 5 (Q) of Form 9C
3. Financial Year 01-04-2018-31-03-2019
4. FRN If practicing in Individual Name than write ‘Not Applicable’ or ‘NA’
5. GSTIN of the Assessee Optional


7. IMPORTANT EXCERPTS FROM FAQS ISSUED BY ICAI ON UDIN
(
udin.icai.org)

(a)           Do I need to take separate UDIN for Statutory Audit of Financial Statements and Tax Audit?

Ans.: Yes, separate UDINs are required for audit of financial statements and tax audit because both are separate assignments and true and fair view is given in financial statement and true and correct view is given for tax audit assignment.

(b)           For Tax Audit u/s. 44AB, whether separate UDIN is required for Audit Reports  like 3CA/3CB and Form 3CD?

Ans.: No, UDIN is to be generated per assignment per signatory, hence one UDIN to be generated and same UDIN is to be mentioned in all Forms such as 3CA/3CB and 3CD.

(c)            For other GST and/or Tax Audit Reports, whether separate UDIN is required for various annexures?

Ans.: No, UDIN is to be generated per assignment per signatory, hence one UDIN to be generated and to be mentioned in all Annexures if they are part of the Reports.

(d)           Is UDIN required for No Objection Certificate (NOC) given by previous auditor?

Ans.: UDIN is not required for NOC.

(e)           Is UDIN required on peer review report?

Ans.: UDIN is not required on peer review report.

(f)            Is UDIN required for consolidated Financial Statements?

Ans.: Yes, UDIN is required for consolidated Financial Statements. However separate UDIN is required for standalone and consolidated financial statements.

(g)           Whether UDIN is require while giving consent letter & certificate pursuant to section 139 read with relevant rules for appointment as auditor under the Companies Act, 2013?

Ans.: Not required.

In case if you have any question or suggestion, please feel free to Post Comments / Leave Reply.

About Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM

CA Chintan Patel is a partner of Naresh J. Patel & Co. Chartered Accountants (www.nareshco.com). Key Professional Contributions: Immediate Past Chairman of Ahmedabad Branch of WIRC of ICAI, Co-author of book on Ind AS & ICDS published by Taxmann, Trainer/Faculty at more than 300 seminars/conferences. He has over 15 years of post qualification experience working with SMCs, MNCs on International GAAP, Companies Act, 2013, GST and other advisory.
This entry was posted in Companies Laws, General and tagged , , , , , , , , , , . Bookmark the permalink.

31 Responses to Practical Issues on UDIN generation for Statutory Audit of Companies and important UDIN FAQs

  1. mukul k rohatgi says:

    please advise for udin problem

    party confirmed the turnover very late as on today dated 31/10/2019 as there was a dispute with government billing and on the other hand tds deposited today dated 31/10/2019

    as far as tar udin no problem

    but for company audit what can be the date of agm now

    as 30 th september could not be fixed

    limited review signed on 14/10/2019 for particular purpose subject to audit

    please clarify

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      The accounts to be audited and approved in AGM within stipulated time lines unless extension of AGM is sought and granted by MCA. If due to certain circumstances, confirmation is not received or TDS is not being deposited till the due date of signing the report, audit report is to be issued based on the fact on the signing date and you may qualify the report or provide emphasis of matter based on the grievance of matter and it’s impact on true and fair of financials.

  2. MOHIT KHATWANI says:

    I HAVE PVT LTD CO AND STILL I HAVE NOT COMPLETED MY ACCOUNTS AND MAY BE IT WILL TAKE SOME MORE TIME.
    I KNOW AS I FILED IT LATE IT WILL ATTRACT PENALTY OF RS. 150000/-.
    MY CONCERN IS THAT IF I FILED MY AUDIT REPORT AFTER 31.10.2019 THEN I AM ABLE TO GENERATE UDIN OR IT IS COMPULSORY TO GENERATE UDIN WITH IN 30 DAYS OF AGM.

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      UDIN is required to be generated within 30 days of signing the financials. If extension of AGM date is not taken from MCA, last date of holding AGM is 30th September 2019 and atleast by that date, accounts need to be audited. Hence, latest by 29th October, 2019, UDIN may be generated.

  3. Sagar Gupta says:

    Is UDIN also required for pvt ltd companies having turnover less than 1 cr as in this case no audit report is to be signed ..only return is to be filed.

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      UDIN is required whenever CA sign/certify. For Private Limited company, UDIN is required at the time of singing Statutory Audit Report.

  4. Arvind Pusalkar says:

    As our Accounts were Audited and finalised We were to file our ITR and Tax Audit Report on 28/09/2019 and Our CA will be generating UDIN for the same but
    on 27/09/2019 we came to know the extension of Date to 31st of Oct 2019 and our Managing Director (A Construction Pvt. Ltd. Co having 3 Directors) recalculated the stock and asked our CA to change the Closing Stock/WIP figures and Net Profit. (Genuine One)
    But our CA refused and told us that he has already generated UDIN and can not change the figures and will file as per earlier audited accounts.

    Queries

    1) Is he correct or is there any solution for our right to change the figure which are genuine in nature.
    2) Can an assessee lost his right of revised ITR after UDIN made mandatory by ICAI ?
    3)Can a UDIN is revoked/cancelled and generate again with new audited figures ?

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      Please find my response to your questions:
      1) Is he correct or is there any solution for our right to change the figure which are genuine in nature.
      At the time of generation of UDIN, the key figures are required to be inserted. Once UDIN is generated with date of signing being earlier than UDIN, the figures can not be changed.
      2) Can an assessee lost his right of revised ITR after UDIN made mandatory by ICAI ?
      ITR can be revised. UDIN is mandatory only for attestation/certification by CA.
      3)Can a UDIN is revoked/cancelled and generate again with new audited figures ?
      Yes, UDIN can be revoked/cancelled with the reason to be mentioned and New UDIN can be generated.

  5. Aashish Kumar Jha says:

    date of signing of Financial statement by board 10.09.2019 and Auditor signing date also same 10.09.2019 then what is last date UDIN can be generarted

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      UDIN needs to be generated withing 15 days but the requirement has been relaxed to 30 days on Sep 20, 2019. ICAI has given one-time relaxation for the Certificate / Report / Document signed between 20th August, 2019 to 31st December, 2019 only. Thanks.

  6. Sanjay Shah says:

    Whether UDIN has to be mentioned in both Balance sheet/financials & Audit report or is it only on Audit report. ?

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      UDIN has to be mentioned on Audit Report (As clarified by ICAI FAQ).

  7. Kumar Mutha says:

    I have signed audit report under companies act 2013 on 2nd Sept. 2019 without mentioning UDIN. Is it a valid audit report? Now I have generated UDIN. What shall I do now to incorporate the UDIN on audit report?

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      You may specify by handwritten on audit report and please communicate to ‘Management’ or ‘Those charged with governance’ for disseminating to the stakeholders from their end.

  8. Nishtha Tiwari says:

    Is it required by the Companies Act that we can send notice for AGM only after getting the audited Financial Statement ? what if I send AGM Notice by 6th September but get my F/s audited by 25th of September?

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      AGM is to be called for approval of financial statements only after they are audited.

  9. RAMNIK SHAH says:

    1. Required to put udin while signing co-op society report. 2. If certificate of practice is there and who has no any such type of work where he has put to sign. Has he should do ant procedure under udin requirement?

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      1. Yes, on all attestations, UDIN is required including co-op society audit report
      2. If no attestation or certification done, than no UDIN. By just holding COP, does not require UDIN.

  10. NITIN KANAIYALAL AGRAWAL says:

    VERY NICE INFORMATION SIR……………ALL DOUBT CLEAR IN A SINGLE SCREEN SHOT WITH VERY EASILY…..

  11. PANKAJ JAIN says:

    III 29th September, 2019 Shorter Notice* Consent of 95% of members entitled to vote is mandatory 30th September, 2019 13th October, 2019
    Sir
    In above case , can we place audit report without UDIN on date of AGM
    Kindly recheck and confirm

    Regards Pankaj jain

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      Yes, you can place audit report without UDIN and the same can be generated within 15 days of signing. In such case, UDIN so generated is required to be communicated to ‘Management’ or ‘Those charged with governance’ for disseminating to the stakeholders from their end.

  12. CA. K.L.JAIN says:

    1.suppose someone has signed the balance sheet on 16.08.2019 and inadvertently forgot to generate UDIN. Is there any remedy?
    2.someone has generated udin for say all his 10 companies on today but puts his signature afterwards dating back.will there be any default?
    3.suppose out of above 10 companies he could not do audit of 2 companies and these audit reports remains unsigned .what shall he do?

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      1. 15 days of grace period is only allowed.
      2. As far as signing date and date of generation of UDIN is same (or within 15 days), it’s valid compliance.
      3. Revokation of UDIN can be done

  13. shah manoj bachubhai says:

    Please explain the status/situation for signing of financial statements of non-corporate entity who are neither covered any situation you dicussed.

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      Yes, UDIN is required to be generated for audit report of financials of non-corporate assessess. The same is also clarified by ICAI via FAQs

  14. Jayprakash Shah says:

    UDIN is required to be quoted on financial statements. As referred it can be ue generated within 15 days time. Than how UDIN can be quote at the time of signing the statements? Would you clarify please?

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      You can quote UDIN later on financial statements as handwritten. The grace period of 15 days is provided for administrative convenience. The UDIN so generated has to be communicated to ‘Management’ or ‘Those charged with governance’ for disseminating to it stakeholders from their end, as clarified by ICAI vide FAQs.

      • SAJAG SHAH says:

        AS PER POINT 18 OF PARA H OF FAQ
        18. What will …..

        UDIN can be generated till 15 days of signing the document (Provided the Stakeholders accepts the same) except in cases where UDIN has to be mentioned while signing Audit Reports. ….

        STILL I CAN quote UDIN later on financial statements as handwritten OR have to supply saparately by annexure to the stakeholders or mandatory to Generate on the date of signing of report?

        • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

          As per FAQ by ICAI, UDIN can be generated within 15 days of signing. In such case, UDIN so generated is required to be communicated to ‘Managaement’ or ‘Those charged with governance’ for disseminating to the stakeholders from their end.
          Hence, you can generate later on and handwritten on financials with signature and inform the management thereof.

  15. STUTi Shah says:

    Is udin is required while filling forms under mca.. be it be annual filling or general form filling.

    • Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM says:

      UDIN is mandatory for all certificates issued by CA w.e.f. 1st February, 2019. The certificates may be provided either physically or online. In case of any certificate/attestation by CA on MCA or any online utility (wherein there is no space to write UDIN), the same need to be generated and retained for providing the same on being asked by any third party/authority.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>