What changed
RBI amended the guidelines for submitting Annual Performance Report (APR) for overseas Joint Ventures (JV) and Wholly Owned Subsidiaries (WOS). The APR must now be submitted in Form ODI Part III by June 30 each year, based on the latest audited annual accounts. The earlier exemption allowing submission based on un-audited accounts, subject to conditions in A.P. (DIR Series) Circular No. 96 dated March 28, 2012, remains in force.
What it means for you
Banks must ensure their corporate clients submit APRs for each overseas JV/WOS by the June 30 deadline using audited accounts. This standardises reporting and reduces discretion. The continued exemption for un-audited accounts provides some flexibility, but banks need to verify compliance with the conditions of the earlier circular.
What you must do
- Notify all corporate customers with overseas JVs/WOSs about the June 30 APR deadline using Form ODI Part III.
- Ensure APRs are based on audited accounts unless the client qualifies for the un-audited accounts exemption under Circular No. 96.
- Update internal compliance checklists to include this revised APR submission requirement.
- Advise clients to maintain audited accounts of overseas entities ready well before the deadline.
Who it affects
AD Category-I banks, Indian parties with overseas JVs or WOSs, Compliance departments handling FEMA reporting
What is the new deadline for APR submission?
The APR must be submitted by June 30 each year, in Form ODI Part III, for each overseas JV or WOS.
Can we still submit APR based on un-audited accounts?
Yes, the exemption granted under A.P. (DIR Series) Circular No. 96 dated March 28, 2012, continues to apply, subject to its terms and conditions.
Which form should be used for the APR?
The APR must be submitted in Form ODI Part III, as specified in the circular.