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This Article talks about the overview for conducting audit as per Code of Federal Regulations CFR, standards for obtaining consistency and uniformity for the audit of Indian Government and Non-Government social bodies which are granted Aids by Government and Non-Government US agencies.
In context to audits for projects executed by Healthcare and Hospital ‘s related to Research of Antibiotics or Influenza of for any other disease or social cause, the Audit Report must be issued in accordance CFR and GAGAS. Report Emphasis on Fund Accountability Statement, internal controls, statutory compliance requirements, suggested audit procedures, management report and audit reporting requirements.
Social Agencies constantly work 24/7 to protect a nation from health, safety and security threats within and outside the country. Diseases start at home or other country, whether it is chronic or acute or curable or preventable or deliberate attack, it’s team which fights against the disease and supports communities and citizens to do the same.
In the case of US foreign GRANT to Non-Federal Agency where expend is US$ 750,000 or more during Non-Federal Agency Fiscal Year in federal Awards, then specific Audit under CFR needs to be conducted.
US federal and Non-Federal Agencies keep awarding project to different Indian organizations to help implement Global Health Security Agenda projects across the country. Project are mainly in the expansion of various disease detection networks, as well as provide resources needed to help strengthen India in overall preparedness for potential global disease threats like COVID 19 Corona Virus, EBOLA, INFLUENZA, Research on Antibiotic and much more.
In CFR Audit, Auditee responsibilities are:
Auditors Responsibility
Audit Report Submission
The audit must be completed, and the data collection form described in CFR. Audit Report must be submitted within the earlier of nine months after end of the audit period.
Federal Agency Responsibility:
Federal Agency provides technical audit advice and liaison assistance to auditee and auditors. Federal agency to advise auditee while procuring audit services, the objective is to obtain high quality audits. The objective of the audit and scope of the audit must be made clear and the non-federal entity must request a copy of the audit organization’s peer review report which the auditor is required to provide under GAGAS.
COVID-19, an infectious disease caused by a novel Coronavirus is exponentially spreading illness and causing deaths to citizens throughout the globe and has been recognized as a global pandemic by the WHO. COVID-19 has not only affected the health of people across the globe and it has also caused severe disturbances in the global economic environment which has consequential impact on financial statements and reporting.
The adverse impact of this global pandemic can vary from nation to nation, industry to industry and above all entity to entity. As the companies in India approach their year-end, there is an urgent need to evaluate the impacts of the outbreak on their accounting and financial reporting. In this regard ICAI issued an advisory to provide light on some important requirements of Indian Accounting standards (IND AS) and Accounting standards (AS) to be considered by preparers of financial statements on how to incorporate effect of COVID 19 on financial statements for the year ending 31/03/2020.
Some of the key accounting and financial reporting considerations for the companies are explained below.
1. GOING CONCERN ASSESSMENTThe Financial statements are normally prepared on the assumption that an entity is a going concern and will continue in operation for the foreseeable future. In this regard Management would need to assess whether the current events and conditions cast significant doubt on the company’s ability to continue as a going concern.
While assessing that whether any entity is going concern or not, management should consider all available information about future for at least the period of next 12 months from the end of reporting period. If management decides that due to impact of COVID 19 entity intends to liquidate the entity or cease its business after the end of reporting period, then accounts shall not be prepared on going concern basis. Necessary disclosures as per Accounting Standards shall also be made, such as material uncertainties that might cast significant doubt upon an entity’s ability to continue as a going concern.
2. INVENTORY MEASUREMENTDue to COVID 19 there is a decline in sales, decline in selling price which might lead to obsolescence of inventory and reduction in movement of inventory. Hence management are advised to consider writing off inventory to its Net Realisable Value i.e. NRV. Accounting Standards also provide light on allocation of fixed production overheads on the basis of normal production capacity. The amount of fixed overhead allocated to each unit of production is not increased as a consequence of low production or idle plant. Unallocated overheads are recognised as an expense in the period in which they are incurred.
All organizations are required to assess the disclosures due to write down of inventory as per applicable Accounting Standards.
3. LEASES(a) If there are any revision in lease terms and agreement due to COVID 19 such as concession with respect to lease payments etc, these revisions must be incorporated. (anticipated revisions are not to be incorporated).
(b) Discount rate used to determine the present value of new lease liabilities may need to incorporate any risk associated with COVID-19.
(c) If Government grant any compensation to lessor in order to provide concession to lessee. It is advised to consider whether same is to be accounted for as lease modification under IND AS 116 or whether consider assistance received from government as grants under IND AS 20.
(d) Check whether discount rate used to discount value of lease liabilities include the effect of risk of COVID 19.
(e) Check whether any lease contracts have become onerous due to COVID 19.
All the entities on whom AS 19 is applicable need to examine all the same situations as mentioned in IND AS 116 but with respect to AS 19. If any contracts have become onerous, such contracts need to be accounted under AS 29.
4. REVENUEEntities may have to disclose any impact of COVID 19 on nature, amount, timing and uncertainty of revenue as per applicable Accounting Standards. When estimating the amount of revenue to be recognized, factors like increase in sale return, high price discounts etc due to COVID 19 need to be considered. Also, they should consider related impact on recoverability of trade receivables including estimate of expected credit losses.
Such entities might need to defer the recognition of revenue due to collection uncertainty as a result of impacts of COVID 19. Disclosure of such deferment shall also be made according to AS 9.
5. PROVISIONS, CONTIGENT LIABILITIES AND CONTIGENT ASSETS Entities covered under IND AS 37
(a) Some contracts are bound to become onerous due to COVID 19. If any such contracts are found they should be recognized as per IND AS 37. Before recognizing onerous contract, all assets dedicated to such contracts should be tested for impairment. (Onerous contracts are those contracts in which unavoidable cost of meeting obligation is more than the benefit to be achieved from the contract). It is also advised to disclose if any executory contracts are converted to onerous due to impacts of COVID 19.
(b) Insurance claims may be recorded by entities only if the insurance companies have accepted the claim and recovery is virtually certain.
Due to COVID 19, judgement need to be applied in ascertaining provisions for losses and claims.
Entities covered under AS 29If any contracts are converted into onerous due to COVID 19, then such contracts need to be recognized as per AS 29. If any executory contracts are converted into onerous then such contracts shall be disclosed. If management in unable to analyse whether executory contract is converted to onerous or not due to unavailability of information, then such contracts shall be disclosed as well.
6. INCOME TAXESCOVID-19 could affect future profits and/or may also reduce the amount of deferred tax liabilities and/or create additional deductible temporary differences due to various factors. Entities with deferred tax assets should reassess forecasted profits and the recoverability of deferred tax assets in accordance with Ind AS or AS as applicable on entity, considering the additional uncertainty arising from the COVID-19 and the steps being taken by the management to control it.
7. PROPERTY PLANT AND EQUIPMENT (PPE) Ind AS 16 and AS 10 require that useful life and residual life of PPE needs revision in annual basis. It may be noted that the standards require depreciation charge even if the PPE remains idle. Further, COVID-19 impact may have affected the expected useful life and residual life of PPE.
The management may review the residual value and the useful life of an asset due to COVID-19 and, if expectations differ from previous estimates, it is appropriate to account for the change(s) as an accounting estimate in accordance with Ind AS 8 or AS 5 whichever applicable on the entity
8. POST BALANCE SHEET EVENTSEntities must disclose significant recognition and measurement uncertainties that might have been created by the outbreak of the COVID -19 in measuring various assets and liabilities. They should also disclose how they have dealt with the impact of COVID -19 on the financial position and financial performance of the entity.
Keeping in view the spread of novel Coronavirus in India, its declaration as pandemic by WHO, and decision of Government to treat it as notified disaster, it has been clarified that spending of CSR funds by companies for COVID-19 cause shall be eligible CSR activity under Companies Act, 2013. Funds may be spent for various activities related to COVID-19 relating to health care, including preventive health care and sanitation, and disaster management.
Supreme Court extends limitation for filing appeals until further order The Apex Court by taking suo-moto cognisance of situation faced by country on account of Covid-19 pandemic has indefinitely extended the ‘limitation period’ for filing appeals against orders of High Courts or any Tribunal to Supreme Court. To obviate such difficulties and to ensure that lawyers/litigants do not have to come physically to file such 2 proceedings in respective Courts/Tribunals across the country including this Court, it is hereby ordered that a period of limitation in all such proceedings, irrespective of the limitation prescribed under the general law or Special Laws whether condonable or not shall stand extended w.e.f. 15th March 2020 till further order/s to be passed by this Court in present proceedings.
Sebi further relaxes compliance norms for listed entities SEBI, vide circular no SEBI/HO/CFD/CMD1/CIR/P/2020/38 dated March 19, 2020 had provided relaxation from compliance with certain provisions of the LODR. It has been decided to grant the following further relaxations from the LODR. Regulation and associated filing:
1. Regulation 40(9) relating to Certificate from Practicing Company Secretary on timely issue of share certificates (half yearly): Extended to May 31, 2020 2. Regulation 44(5) relating to holding of AGM by top 100 listed entities by market capitalization for FY 19–20 (annual) : Extended to September 30, 2020
Bill for direct overseas listing of firms tabled The Centre has introduced the Companies Amendment Bill 2020 in the Lok Sabha to decriminalise procedural and technical lapses and to allow direct listing of securities by Indian firms in permissible foreign jurisdictions.
The Bill has also laid down rules for incorporation, registration, amalgamation, and functioning of producer companies, apart from paving the way for conversion of interstate cooperatives into producer companies.
The proposed amendmen t is in line with the government´s aim to streamline the functioning of farmer producer organisations in order to achieve the goal of promoting 10,000 new FPO in the next five years.
A host of activities have been included into the ambit of producer companies that include financing the need of primary producers largely farmers.
Labour Ministry amends EPF norms in event of Covid-19 outbreak The notification GSR 225(E) issued by Ministry of Labour and Employment amending the EPF Scheme 1952 allows withdrawal of non-refundable advance by EPF members in the wake of COVID -19 pandemic in the country. The notification permits withdrawal not exceeding the basic wages and dearness allowance for three months or upto 75% of the amount standing to member’s credit in the EPF account in the event of outbreak of epidemic or pandemic.
FM announces Rs 1.70 Lakh Cr. relief package for poor to fight battle against Corona Virus The Union Finance & Corporate Affairs Minister Smt. Niramla Sitharaman today announced Rs 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against Corona Virus. While addressing the press conference here today, Smt. Sitharaman said “Today’s measures are intended at reaching out to the poorest of the poor, with food and money in hands, so that they do not face difficulties in buying essential supplies and meeting essential needs.”
In pursuance of its objective of strengthening the corporate governance framework under the Companies Act, 2013 to attain the national objective of becoming a $ 5 Trillion economy, powers conferred under sub-section (11) of section 143 of the Companies Act, 2013 and in supersession of the Companies (Auditor’s Report) Order, 2016, the Central Government has notified the Companies (Auditor’s Report) Order, 2020 (CARO 2020) on 25th Feb, 2020.
The CARO, 2020 is applicable for an audit of financial statements of eligible companies for the financial years commencing on or after the 1st April 2019. The criteria of eligibility of companies on which the CARO, 2020 shall be applicable has not been changed and hence it shall be applicable to all those companies on which CARO, 2016 was applicable. CARO 2020 would necessitate enhanced due diligence and disclosures on the part of auditors of eligible companies and has been designed to bring in greater transparency in the financial state of affairs of such companies.
The CARO, 2020 includes certain additional clauses, as compared to CARO, 2016, and the existing clauses of CARO, 2016 have been re-drafted to elicit detailed comments from the auditors. A brief analysis is given below:
1. Fixed Assets:
In clause (i)(a): The word “Fixed assets” is replaced by “Property, Plant and Equipment” and “Intangible asset” separately.
New clause (i)(a)(B) has been inserted to report whether proper records have been maintained showing full particulars of intangible assets.
Description of propertyGross carrying valueHeld in the name ofWhether promoter, director or their relative or employeePeriod held — indicate range, where appropriateReason for not being held in the name of the company
New clause (i)(d): will be applicable if there is revaluation of fixed asset by registered valuer. Amount to be specified if deviation is 10% or more.
New clause (i)(e): Disclosure of details of proceedings against the company for holding Benami Property and whether the company has disclosed the details in its financial statements.
2. Inventory
Clause (ii)(a) Expanded: Auditor is required to comment on coverage and procedure of inventory verification by management.
Also Materiality has been defined as 10% or more in each class of Inventory.
New clause(ii)(b): If the company has any working capital facility against current assets in excess of Rs. 5 crores at any time during the year, then the auditor has to confirm whether the quarterly submissions made to the lenders are in conformity with the books of accounts or not.
3. Loans granted
Modified clause(iii) of CARO, 2020: Details of all loans granted, advances in the nature of loans granted, guarantees/ security given to any entity has to disclosed. This will not be applicable to companies whose principal business is to give loans.
Details of loans which were renewed, extended or fresh loans are granted to settle overdue of existing loans given to same parties to be given. Inter alia percentage of such loans to aggregate loans granted is also to be given.
Details of all loans or advances which are repayable on demand or without any stipulated period of repayment has to be disclosed.
4. Loans, investments, guarantees, and security (Section 185 and 186 of Companies Act, 2013) : There is no change in CARO 2016
5. Deposits: There is no change in CARO 2016
6. Cost records: There is no change in CARO 2016
7. Statutory Dues: There is no change in CARO 2016
8. Default in repayment of loan or borrowings:
Modified clause (ix)(a): Defaults in repayment of principal or interest portion of ANY loan or other borrowings are now to be reported. Earlier defaults in loans from specified lenders like financial institutions, banks, Government or debenture holders were to be reported.
A specific format below has been prescribed to report the period and the amount of default by the company in repayment of loans or other borrowings or in the payment of interest thereon to any lender:
Nature of borrowing including debt securitiesName of lenderAmount not paid on due dateWhether principal or interestNo. of days delay or unpaidRemarks, if any
Newly inserted:
Clause(ix)(b): Auditor has to report if the company is declared a WILFUL DEFAULTER by the bank, financial institution or any other lender.
(ix)(d) Auditor to report if funds raised for short term have been utilized for long term purposes.
(ix)(e) If the company has taken any funds on account of meeting the liabilities of subsidiaries, joint ventures or associates, then such transaction details are to be reported.
(ix)(f) Auditor to report if the company has availed loans on pledge of securities held in its subsidiaries, joint ventures or associates.
9. Public offer: Clause (xiv) of CARO 2016 regarding preferential allotment of shares has been merged in clause (x)(a) of CARO 2020
10. Fraud by/on company: Modified Clause (xi)
(a) Earlier, auditor had to report on any fraud on the company done by its officer or employee. This specification has been removed. Now ANY fraud by the company or on the company has to be reported by the auditor.
(b) If any reporting of fraud has been filed by the auditor under 143(12) of the Companies Act, 2013 then such reporting has to be disclosed here also.
13. Related Party Transactions: There is no change in CARO 2016
14. Internal Audit: New clause(xiv) inserted under which auditor has to report whether-
(a) Company has internal audit system commensurate to the size of the company.
(b) Such internal audit report has been considered by the auditor to reach his Opinion
15. Non-cash Transactions: There is no change in CARO 2016
16. RBI Registration:New clause (xvi) has been inserted in CARO 2020. Accordingly, auditor has to comment if the company has done any NBFC activity without valid registration from RBI.
Whether the company is fulfilling the criteria of Core Investment Company (CIC) or exempted CIC, is to be reported by the auditor
If the company has more than one company as part of the group, then the number of CICs which are part of the group are to be reported.
17. Cash losses:New clause (xvii) has been inserted in CARO 2020.
If the company has incurred cash losses for 2 consecutive years, then the amount of such cash losses are to be reported.
18. Resignation of auditor: Newly inserted clause (xviii)
The current auditor to report if he has taken into consideration the issues, objections or concerns raised by the outgoing auditor, in case the outgoing auditor had resigned during the year.
19. Material uncertainty: Newly inserted clause (xix)
Auditor has to comment whether material uncertainty with regards to company meeting its liabilities is existing at the Balance Sheet date as and when they fall due for the next one year on the basis of:
20. Corporate Social Responsibility: Newly inserted clause (xx) regarding transfer of unspent CSR funds to a specified fund within 6 months from the expiry of the F.Y. is to be reported.
21. Qualifications or adverse remarks by auditor in CFS: clause(xxi)
Auditor has to report whether there have been any qualifications or adverse remarks by the respective auditors in the Companies (Auditor’s Report) Order (CARO) reports of the companies included in the consolidated financial statements and details of those companies thereof.
Closing Thoughts
The CARO, 2020 is expected to significantly improve the overall quality of reporting by the Auditors on the financial statements of the Companies and thereby lead to greater transparency and faith in the financial affairs of the companies. This is automatically expected to bring greater inflow of investment by and in Indian companies.
With the advent of The Real Estate (Regulation & Development) Act, 2016, which came into effect from May 1, 2017, there began a norm for strict compliances that have to be adhered by each and every developer, builder and construction giant in different parts of the country. Most of the states have established their own RERA offices where they work under the established rules and regulations. Though the act is not retrospective in nature it mandates every project to be registered with the respective State RERA offices by the promoters of the company within 3 months of the commencement of the Act.
Objective of RERA
The RERA aims to establish the Real Estate Regulatory Authority that would regulate and promote the real estate sector. The main aim of the Act is to protect the interest of homebuyers and promote timely delivery of properties or projects.
RERA was also enacted to boost investment in the sector. The provisions like timely completion and delivery of projects to the buyers and making the information of the project plan, layout, government approvals, land title status, and sub-contractors available, consent of two-thirds of the allottees on any alteration or addition in the project, and other such provisions, would bring in more transparency and accountability in the real estate sector.
Applicability of RERA and RERA Registration
RERA has been enacted and implemented in all the states as well as Union Territories except the States of Jammu and Kashmir and West Bengal. The State of West Bengal has followed a different path altogether. Instead of RERA, the State of West Bengal has implemented, West Bengal Housing Industry Regulation Act. Separately, the State Advisory Council of Jammu and Kashmir has approved Real Estate (Regulation and Development) Bill, 2018.
RERA makes it mandatory for all commercial and residential real estate projects where the land under development is over 500 square meters or no. of units to be constructed exceeds 8 apartments will have to register with the RERA authority before launching of the real estate project. Every promoter shall make an application to the authority for registration of real estate project. The projects that are ongoing on the date of commencement of this act and for which completion certificate have not been issued have to get registered with RERA. If real estate project fails to register a property, it will attract penalty.
However, renovation, repair or redevelopment projects not involving marketing, advertising, selling and new allotment are not required to get registered.
Compliance under RERA
RERA registration is just a start of RERA compliances of various provision of RERA regulations. It gives complete details of the project to RERA authority and public at large which would try to ensure that all compliances are met. Some of the compliance for builders are as under:
Uploading of Agreement/Plan/Approval etc. — RERA regulation has mandated to publish the details along-with copy of agreements, approvals etc., on website of RERA Authority for general public viewing purpose.
Quarterly updating with RERA — Every registered project shall update the prescribed details regarding the project on the website of the respective State RERA authority. Failure to do so may attract heavy penalty and penal proceeding from RERA authority.
Separate bank accounts for 70% of receipts — As per the RERA law, every developer is required to deposit 70% of the receipts from the customers in a separate RERA designated account which shall be used only for cost the project.
Comply with Prescribed process of booking and allotment– RERA regulations have prescribed certain obligations and responsibilities on the developers while booking the new flat or allotment, some of them are:
Ensure that transaction is done through RERA registered agent
Making available the approved plan to the buyer
Non-acceptance of advance more than 10% of unit cost
Taking necessary approval and insurance — As per RERA regulation, the builder or developer is required to take all the necessary approvals and insurance, as required by State laws. RERA regulations relating to insurance are very confusing and shall require detailed research.
Formation of allottee’s association — As per RERA regulations, every builder or developer shall form the society/association or co-operative society as prescribed by respective State Government. If nothing is specifically provided by State Government, then society shall be constituted within 3 months from the month in which majority flats are sold.
Timely completion and delivery including common areas — Every builder/association is required to complete the project on given time and give possession within 3 months. All the common areas shall be transferred to association of the allottees.
Review of building quality — The developer need to review the quality of building. As per RERA law, any defects in the structure shall be rectified by the builder within 30 days of intimation without any additional cost.
Project Account (70:30 rule)
Developers are required to deposit 70% of project funds in a designated bank account. Of the total collections, only 30% can be withdrawn / used without any restriction.
In the event where the estimated receivables of the ongoing project are less than the estimated cost of completion of the project, then 100% of the amount to be realized from the allottees shall be deposited in the said separate account.
Withdrawal from the RERA Account to be certified by Engineer, Architect, and Chartered Accountant
Withdrawals from the RERA Account to be in proportion to the % completion method
Withdrawals from the RERA Account can be made for the purpose of payment of construction and land cost of that project only
Amount in RERA designated account cannot be used for Admin and Marketing expenses
Penalties for non-compliance under RERA
The RERA Act gives explicit and mentions of specific penalties for offences by promoters, real estate agents, builders and other parties who are involved under the ambit of this act:
For non-registration of the project with the RERA Authority: 10% of the total estimated cost of the project. However, agent is charged a penalty of Rs. 10,000 per day during default tenure up to 5% of property cost
Where information or advertisement regarding the project is found to be false: Penalty for promoter is 5% of the estimated cost of the project
Where any provisions of the Act (except above) have been contravened: Penalty for promoter and agent is 5% of the estimated cost of the project/ property
Where an order of the RERA has been contravened or has not been executed: Daily penalty for every day after passing of the order which has been contravened up to 5% of the estimated cost of the project/ property for promoter, agent and the allottee.
Where an order of the Appellate Tribunal has been contravened: Penalty up to 10% of the estimated cost of the project/ property for promoter, agent and the allottee.
Prosecution and Compounding
Non-compliance of penalty order by Promoter (for non-registration of Project) issued by the Authority entails imprisonment up to 3 years or further penalty of 10% of estimated cost or both
Non-compliance with the order of the Appellate Tribunal by Promoter entails imprisonment up to 3 years or further penalty of 10% of estimated cost or both
Non-compliance with the order of the Appellate Tribunal by Agent entails imprisonment up to 1 year or daily fine of 10% of estimated cost of apartment or plot of land
Non-compliance with the order of the Appellate Tribunal by Allottee entails imprisonment up to 1 year or daily fine of 10% of estimated cost of apartment or plot of land
Imprisonment punishment could be compounded (before or after the institution of prosecution) by the Court
ConclusionThe legislative regime was not strong enough to render the developer and the builder guilty of misconduct and also for breaching the terms and conditions of the builder buyer agreement in the long run. Introduction and enforcement of RERA comes further to protect the interest of the homebuyers as well as save them from any kind of financial burdens.
Under Indian law, the legal rights and the restrictions imposed on foreign nationals depend on whether they are categorized as residents or non-residents.
Entry into India generally requires a valid visa granted by an Indian Mission (that is, consulate of the Indian embassy) abroad. Furthermore, foreign nationals who enter India must register themselves with the Foreign Regional Registration Office (FRRO) within 14 days of arrival if they intend to reside in India for a consecutive period of more than 180 days.
The entry, stay and exit of foreign nationals into India are primarily governed by the following laws (among others):
Passport (Entry into India) Act 1920, read with the Passport (Entry into India) Rules 1950.
Foreigners Act, 1946.
The Registration of Foreigners Act 1939, read with the Registration of Foreigners Rules 1992.
What is e-FRRO?
It is web-based application aimed to build centralized online platform for foreigners for visa related services. Its key objective is to provide Faceless, Cashlessand Paperless services to the foreigners with user friendly experience.
Using this application, foreigners are required to create their own USER-ID by registering themselves. Afterwards, they would apply online through registered user-id for various Visa and Immigration related services in India viz. Registration, Visa Extension, Visa Conversion, Exit Permit etc, without any hassle and obtain the service(s) without coming to FRRO office.
The necessary immigration/Visa document e.g. Registration Permit/Certificate (RP/RC), Visa Extension Certificate etc will be sent by post on the address mentioned. It would also be electronically sent to the foreigner to his registered email ID.
Foreigners would not be required to mandatorily visit FRRO/FRO office for grant of service. However, in certain exceptional cases, the foreigner will be intimated to visit the FRRO/FRO on scheduled date and time for interview.
In case of an exigency, the foreigner can visit the FRRO/FRO office directly for grant of service.
Foreigners’ Registration in India
All foreigners (including foreigners of Indian origin) visiting India on long term (more than 180 days) Student Visa, Medical Visa, Research Visa and Employment Visa are required to get themselves registered with the Foreigners Regional Registration Officer (FRRO)/ Foreigners Registration Officer (FRO) concerned having jurisdiction over the place where the foreigner intends to stay, within 14 days of arrival (except Pakistan and Afghanistan).
All Business Visa holders are required to register themselves with the FRRO/FRO concerned in case the aggregate stay in India on Business visa exceeds 180 days during a calendar year.
Foreigners other than those mentioned above will not be required to get themselves registered, even if they have entered India on a long term visa provided their continuous stay in India does not exceed 180 days. If the intention of the foreigner is to stay in India for more than 180 days, he/she should get himself/ herself registered well before the expiry of 180 days from the date of arrival with the FRRO/FRO concerned.
Children below 16 years of age are exempted from Registration if they have entered on PIO card or on any type of Visa and except where specified otherwise. It is mandatory for all foreigners to personally appear at the concerned FRRO office for obtaining any Visa related services.
Requirements for Extension of VisaForeigners must submit application for extension of residential permit/ visa at least 60 days before the date of expiry of respective residential permit/visa.
Over stayIn the event of overstay foreigner is liable for prosecution under Foreigners Act 1946 and imprisonment up to 5 years with fine & expulsion from India.
Late Renewal of Residential PermitA foreigner who has delayed for renewal of RP, on application, if delay is condoned will be charged a penalty in Indian currency equivalent to US $30/- for late renewal.
Report of absence from Registered AddressIf at any time a foreigner proposes to be absent from his / her registered address for a continuous period of eight weeks or more or change his / her registered address, then the foreigner is required to inform in person or through an authorized representative or by registered post to his / her Registration Officer of his / her intention to change his registered address or to leave either temporarily or permanently under the jurisdiction of the Registration Officer. In case of return, the foreigner should inform the Registration Officer of the date of return and in case the foreigner is moving away inform the change of address. Any changes made subsequently should also be intimated to the Registration Officer. Every foreigner, who stays for a period of more than eight weeks at any place in any district other than the district in which his / her registered address is situated, shall inform the Registration Officer of that district of his / her presence. This can be made in writing and the requirements deemed to have been fulfilled if, prior to arrival the foreigner furnishes to the Registration Officer of the said district intimating the dates of his proposed arrival and departure from the district.
Change in Registered addressA foreigner shall be deemed to have changed his registered address, if he changes his residence from one place to another place in India and if having no residence, he leaves his registered address knowing that he is not likely to return within six months of leaving it.
Reports of other changes except addressEvery foreigner is required to furnish to the Registration Officer of the district in which his registered address is situated, particulars of any circumstances affecting in any manner the accuracy of the particulars recorded in his certificate of registration within fourteen days after the circumstance has occurred, and generally shall provide to the Registration Officer all information as may be necessary for maintaining the accuracy of the certificate.
Surrender of certificates of registration on departureEvery foreigner who is about to depart finally from India shall surrender his certificate of registration either to the Registration Officer of the place where he is registered or of the place from where he intends to depart or to the Immigration Officer at the Port/Check post of exit at the time of final departure from India. If the certificate is surrendered other than to the Immigration Officer of the port or check post of exit, a receipt indicating such surrender of the document may be obtained and shown to the Immigration Officer at the time of final departure
Duplicate certificate of registrationIf any certificate of registration, issued under existing Acts / Rules is lost or destroyed, the foreigner to whom it was issued, shall make or send to the Registration Officer of the district of his registered address a report of circumstances in which it was so lost or destroyed along with an application in writing and a copy of police report in order to issue a duplicate copy of the certificate of registration.
Person of Indian Origin (PIO)
As per the Gazette of India (Part-I, Section-I) published on 09.01.2015, all the existing Persons of Indian Origin (PIO) card holder registered as such under new PIO Card scheme 2002, shall be deemed to be Overseas Citizens of India Cardholder.
All PIO card holders with valid PIO cards as on 09.01.2015 are advised to apply for conversion of their PIO card to OCI card.
Bureau of Immigration would accept PIO card as valid document till March 31, 2019 along with valid foreign passport. Machine-readable electronic document is mandated by the International Civil Aviation Organization (ICAO) guidelines.
Overseas Citizen of India (OCI) Cardholder(a) The following categories of persons (except Pakistan and Bangladesh) are eligible to apply under OCI scheme:
Who is a citizen of another country, but was a citizen of India at the time of, or at any time after, the commencement of the constitution; or
Who is a citizen of another country, but was eligible to become a citizen of India at the time of the commencement of the constitution; or
Who is a citizen of another country, but belonged to a territory that became part of India after the 15th day of August, 1947; or
Who is a child or a grand-child or a great grandchild of such a citizen; or
(b) A person, who is minor child of a person mentioned in clause (a); or
(d) Spouse of foreign origin of a citizen of India or spouse of foreign origin of an Overseas Citizen of India Cardholder registered under section 7A, Citizenship Act 1955and whose marriage has been registered and subsisted for a continuous period of not less than two years immediately preceding the presentation of the application under this section.
Foreigners Possessing Entry (X) Visa / Journalist (J) Visa
Foreigners visiting India on long term Entry(X) visa or J visa would not require registration with the concerned FRROs/FROs if the duration of his/her stay does not exceed 180 days on a single visit. In case a foreigner intends to stay for more than 180 days on a single visit he should get himself registered well before the expiry of 180 days.
Foreigners visiting India are also required to adhere to the Special Endorsement made on the Visa by the Indian Mission.
Every foreigner at the time of Registration, shall furnish, such information in registration report, as may be in his possession for the purpose of satisfying the Registration Officer and shall, on being required, shall sign the registration report in the presence of the said officer and shall thereupon be entitled to receive from the said officer a certificate of registration in Part III of Form A.
Indians visiting abroad ECNR/ECRAs per the Emigration Act, 1983, Emigration Check Required (ECR) categories of Indian passport holders, require to obtain “Emigration Clearance” from the office of Protector of Emigrants (POE), Ministry of Overseas Indian Affairs for going to following 18 countries.
United Arab Emirates (UAE), The Kingdom of Saudi Arabia (KSA), Qatar, Oman, Kuwait, Bahrain, Malaysia, Libya, Jordan, Yemen, Sudan, Afghanistan, Indonesia, Syria, Lebanon, Thailand, Iraq (emigration banned).
However , the Ministry of Overseas Indian Affairs (Emigration Policy Division) have allowed ECR passport holders traveling abroad for purposes others than employment to leave the country on production of valid passport, valid visa and return ticket at the immigration counters at international airports in India w.e.f. 1st October 2007.
If the RPO has issued Indian passport either with endorsement of “Emigration Check Required” or no endorsement of “Emigration Check Required” in the passport, POE clearance is required only when there is “Emigration Check Required” endorsement in the passport.
Stock audit is a region of specialization and core competence for PK Chopra & Co. . Internal Audit Services are our greatest due to our unparallel reach and every one India network. Assets e.g. Stocks and physical assets like raw materials are important real assets and wish repeat watch. As a large number of companies are operating across the borders through multiple locations, some even with various channel partners, ensuring this watch is challenge. we provide our focused services to companies to stay them assured of their physical assets.
In other words, stock audit may be a statutory process which each business institution must perform a minimum of once during a fiscal year . As far the stock audit process cares , the method mainly involves the counting of physical stock presenting the required premises and verifying an equivalent with computed stock maintained by the corporate . the rationale and purpose behind executing this is often to correct the discrepancies present within the book stock in comparison to physical stock by passing necessary adjustment entries.
Fixed Assets Audit in India
Fixed assets are the long term assets that record within the record and showing balance at the top of the reporting date. Fixed assets are non-current assets that have a useful life for quite one years.
Fixed assets aren’t recognized as expenses within the earnings report at the time of buying but it’s recognized as expenses when the entity uses them.
Fixed assets are normally large if we compare to other assets like current assets. and that they are generally considered as sensitive areas from the audit perspective. The auditor responsible on these areas should be the one that has experiences and knowledge enough otherwise the detection or audit risks could be increasing.
INTRODUCTION
