Why UDIN ??

A sudden requirement in the industry gave a shock to everybody about this new concept of UDIN. But what is UDIN? How is it related to a normal person, a CA, and some of the important transaction? Let me answer your questions step by step by telling you about why it has come into the limelight!!

Purpose of UDIN
The Institute of Chartered Accountants of India (ICAI) has noticed that financial documents/ certificates attested by third person misrepresenting themselves as CA Members are misleading the authorities and stakeholders. Due to which it was receiving many complaints of signatures being forged by Non-CA’s.
To curb such malpractices, the Professional Development Committee of ICAI has come out with an innovative concept of UDIN i.e. Unique Document Identification Number which is being implemented in a phased manner. It will secure the certificates attested/ certified by practicing CA’s. This will help the banks/ third parties to check the authenticity of the documents.

Applicability of UDIN
Unique Document Identification Number (UDIN) is mandatory for all Certificates issued by Chartered Accountant in Full time Practice w.e.f. February 1, 2019. It is mandatory to obtain UDIN for all certificates issued where the financial information/ related contents is certified as True and Fair.
An illustrative list has been given by the AASB (Auditing and Assurance Standard Board) of ICAI via Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) which are to be followed by the Full Time Practicing Chartered Accountants.
List has been described below:
1. Certificates for Foreign Remittance outside India in Form 15CB.
2. Net worth certificates for Bank Finances.
3. Net worth certificates for Bank Guarantee.
4. Net worth certificates for Student Study Loan.
5. Certificates issued under LLP Act.
6. Certificate issued under RERA.
7. Certification of arm's length price u/s 92 of the Income Tax Act, 1961.
8. Certificates issued on the basis of Financial books of accounts and annual financial statements – Turnover Certificate
9. Certificates issued on the basis of Financial books of accounts and annual financial statements- Net worth Certificate.
10. Certificates issued on the basis of Financial books of accounts and annual financial statements- Working Capital Certificate.
And many more, the list goes on and on.......

Important considerations for Members
1. Members must ensure that each certificate issued on or after February 1, 2019, has a UDIN stated after the signature and Membership Number of the partner/proprietor.
2. Member should use the email address and phone number registered with ICAI. In case the email address is other than the official email, this should be changed to the official email address at the earliest by contacting the ICAI office.
3. Member should keep the screenshot of the UDIN generated for the certificate for future use
4. UDIN is to be generated at the time of signing the Certificate.
5. No document is required to be uploaded on the UDIN Portal, for generating UDIN.
6. The authorities, regulators, banks or other stakeholders can search UDIN indicated on certificate on their own through the search option on the Portal by providing few details.

Consequences of not generating a UDIN
UDIN generation is being made mandatory as per the Council Decision of ICAI, hence not generating UDIN for mandatory documents will amount to non-adherence of the Council Decision and may attract disciplinary proceedings as per the Second Schedule Part II of The Chartered Accountants Act, 1949.