The Institute of Chartered Accountants of India ( ICAI ) has issued a set of Frequently Asked Questions (FAQ) on the use of the system of UDIN (Unique Document Identification Number).
The ICAI, in view of the increasing instances of forgery involving the stamp and signature of Chartered Accountants the new system of UDIN which is mandatory from January 2019.
The document stated that the financial statements and documents were being certified/ attested by third persons, in lieu of Chartered Accountants. As these statements are being relied upon by the authorities as true statements and certificates, UDIN can be generated by a practicing CA by registering his/her documents/ certificates on UDIN Portal for verification.
The UDIN once generated can be withdrawn or canceled with narration. Hence if any user searches for this UDIN, appropriate narration indicated by Member with the date of revoke will be displayed for reference.
“While registering the certificate for generation of UDIN, the member has to compulsorily provide Key values (minimum three and maximum five), which are found in the document or certificate generated. Key values can be any financial figure extracted from the attested statement or certificate such as Turnover Net profit, Utilization amount, Import amount, Export amount, Duty refund, Refund, Net worth, Revenue, Input tax credit, Loan amount, Total Assets, Net owned funds, Profitability, Capital To Risk Asset Ratio (CRAR), Statutory Liquidity Ratio, Gross fixed assets, Net loss, Misc. expenditure, Total capital investment, Sanction amount, Other (please specify any keywords), etc,” the ICAI said.
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