UDIN FOR Cost & Management Accountants (CMAs) in Full Time Practice-FAQs-ICMAI

OF LATE BUZZ WORD IS UDIN NOW POPULAR IN PROFESSIONAL FRATERNITY REGARDING CERTIFICATION WORK DONE BY CMAs. Several times it has been noticed that non-CMAs has been misrepresenting themselves as ICMAI member and offering certification services to numerous Authorities and Stakeholders. Such malpractices started bringing a question on the authenticity of COST & financial documents/certification done by actual ICMAI Members in practice.

Considering the rise in a number of complaints received by ICMAI, the Professional Development Committee of ICMAI has come out with an inventive idea of UDIN i.e. Unique Document Identification Number.

What is UDIN?

Unique Document Identification Number (UDIN) is 18-Digits system generated a unique number for every document certified/attested by Practicing Cost & Management Accountants (CMAs). It will allow numerous Stakeholders and third parties to check the genuineness of the documents and will secure the certificates certified by practising Cost & Management Accountants (CMAs). In other words Unique Documents Identification Number (UDIN) will be a unique number which will be required to be generated for each and every document type being certified or attested by Practicing Cost & Management Accountants (CMAs). Registration will be required to be done for the same at UDIN portal from July 5, 2019.

Applicability of Unique Document Identification Number (UDIN):

From 5th July 2019,  for all practising Cost & Management Accountants (CMAs).  to generate and obtain UDIN for all Certificates issued, containing financial information or any other contents; which are certified by them to be True and Fair.

UDIN cannot be made in name of CMA Firm and it has to be obtained only by practising CMAs holding full-time Certificate of Practice (COP). In case of Partnership firm or LLP, signing partner has to generate UDIN in his name. UDIN can’t be obtained by any other partner instead of signing Partner

UDIN is applicable not only to manually signed certificates but digitally signed / online certificates also.

Practising Cost & Management Accountants (CMAs). holding full-time COP is to follow the Guidance Note on Reports or Certificates for Special Purposes  issued by AASB (Auditing and Assurance Standard Board) of ICMAI.

The exception to UDIN:

However practising Cost & Management Accountants (CMAs) have to generate and obtain UDIN for all certificates, following are the list of certificates for which UDIN is not made mandatory:

  • Auditor’s Opinion/Reports issued under any Statute to any entity or any person (e.g.: Tax Audit, Transfer Price Audit, VAT Audit, GST Audit, Company Audit, etc.)
  • Valuation Reports,
  • Quarterly Review Reports,
  • Limited Review Report
  • Information System Audit,
  • Forensic Audit,
  • Revenue / Credit / Stock Audit,
  • Borrower Monitoring Assignments,
  • Concurrent / Internal Audit and the like,
  • Any report of what so ever nature issued including Transfer Price Study Report, Viability Study Report, Diligence Report, Due Diligence Report and Management Report, etc.

Options available while generating UDIN:

While generating UDIN, members will have to select one of following from drop down list:

1 Certificates issued on the basis of Financial books of accounts and annual financial statements-Capital Contribution Certificate/net worth certificate 17 Certification under the Income-Tax laws for various Deductions, etc.
2 Certificates issued on the basis of Financial books of accounts and annual financial statements – Turnover Certificate 18 Certification for the claim of refund under GST Act and other Indirect Taxes.
3 Certificates issued on the basis of Financial books of accounts and annual financial statements -Working Capital Certificate/Net Working Capital Certificate 19 Certification under Exchange Control legislation for imports, remittances, ECB, DGFT, EOU, etc
4 Certificates issued on the basis of Statutory records being maintained under Indian Companies Act, 2013 and applicable provisions 20 Certificates in relation to initial Public Issue/compliances under ICDR and LODR.
5 Certification of Fair Values of Shares of Company for the scope of merger / de-merger, Buy Back, Allotment of further shares and transfer of shares from resident to non-resident. 21 Certificate issued by Statutory Auditors of Banks
6 Certificates for Foreign Remittance outside India in form 15CB. 22 Certificate issued by Statutory Auditors of Insurance Companies
7 Net worth Certificates for Bank finances 23 Additional Certification by Concurrent Auditors of Banks not forming part of the concurrent audit assignment
8 Net worth Certificates for Bank Guarantee 24 Certificate of Short Sale of securities issued by Concurrent Auditors of Treasury Department of Banks
9 Net worth Certificates for Student Study Loan 25 Certificate of physical verification of securities issued by Concurrent Auditors of Treasury Department of Banks
10 Net worth Certificates for Issuance of Visa by Foreign Embassy 26 Certificate issued for KYC purpose to banks confirming sole proprietorship
11 Certificate in respect of Liquid Asset under Section 45-IB of RBI Act, 1945 27 Certificate Regarding Sources of Income
12 Certification of arm’s length price u/s 92 of the Income Tax Act, 1961. 28 Certificates for Claiming Deductions and Exemptions under various Rules and Regulations
13 Certificates for funds/ Grants utilisation for NGO’s 29 font-sizes: Certificates issued under LLP Act
14 Certificates for funds/ Grants utilisation for Statutory Authority 30 RBI Statutory Auditor Certificate for NBFCs
15 Certificates for funds/ Grants utilisation Under FERA/FEMA/other Laws 31 Certificate issued under RERA
16 Certificates for funds/ Grants utilisation Charitable trust/institution 32 Others

Other important information:

  • If UDIN is to be generated for Assignment and same UDIN is to be used in all documents signed under that assignment. In this case, there is no need to generate multiple UDINs.
  • Number of UDIN generated in a day/month/year is not restricted.
  • ICMAI will not charge any fees for generation of UDIN.
  • UDIN is secure and it does not contain information about the client of any CMA.
  • UDIN has to be generated at the time of signing the certificates or within 15 days from the date mentioned in certificates. But it cannot be generated on an advance basis.
  • There is no need to upload any document as an attachment while generating UDIN.
  • UDIN is to be generated only once for original certificates. In case the client asks for duplicate certificates, same UDIN can be mentioned.
  • There is no need to mention UDIN on every page or start of certificates. UDIN has to be cited after every signature and membership number.
  • UDIN has no expiry unless revoked by the signing authority (CMA).
  • Revocation / Cancellation of UDIN can be done by members who are signing by providing an appropriate reason. There is no time limit for revocation.
  • Disciplinary proceedings as per the Second Schedule Part II of The Cost & Works Accountants Act, 1959(ICMAI) can be taken against members who do not adhere to the requirement of UDIN

BENEFITS OF UDIN

  • It is being taken out to address concern regarding authenticity of documents / certificates that are issued by any other person other than a Cost & Management Accountants (CMAs).
  • It will provide a Unique identification to Certified Documents
  • Tracing of forged documents will be easier
  • This initiative will facilitate Government and Third Parties in obtaining authentic documents
  • It will secure documents certified by Cost & Management Accountants (CMAs).
  • Accountability and transparency in certification can be ensured
  • Will work as a check medium for documents certified by persons not CMA’s but acting as such.

UDIN recommendatory with effect from 5th July,2019 for Practising Cost & Management Accountants (CMAs).  

FAQs – Unique Document Identification Number (UDIN) for Practising Cost & Management Accountants (CMAs).  

Q.1 What is a Unique Document Identification Number?

Ans: Unique Document Identification Number is a unique number i.e generated by system for each document certified or attested by a Cost & Management Accountants (CMAs). who is registered with UDIN portal (www.eicmai.org/udin).

Q.2 What is the Structure of UDIN?

Ans: It will be a number comprising of first 7 digits being Year & membership number allotted by Institute of Cost Accountants of India, next 2 digits being code for Ministry and last 9 digits being document serial number automatically generated by system. E.g 18-Digit UDIN – YY-MMMMM-ZZ-NANANANAN.

Q.3 Who can generate UDIN?

Ans: Any Practicing Cost & Management Accountants (CMAs) can generate a UDIN for certificate or document attested by him/her in individual capacity or as a partner.

Q.4 What is the status of UDIN facility?

Ans: This facility is recommendatory at present. ICMAI can also make it compulsory in future.

Q.5 Which is the site to check if the certificate number indicated is valid?

Ans: The Certificate Number can be checked on this web link: https://eicmai.org/udin

Q.6 Any limit on number of UDIN which can be generated by a CMA?

Ans: No such limit.

Q.7 What is the methodology for obtaining Registration on UDIN Portal?

Ans: For Registration we should take the following steps are to be taken:

1. Visit homepage at – https://eicmai.org/udin

2. Click the icon – For first time sign up, Click here

3. Enter the six-digit Membership Number with the Institute of Cost Accountants of India, Date of Birth and Date of Enrolment, and lastly click on “Send OTP”. An OTP will be sent to you at the mobile and email, as registered with ICMAI.

4. Enter the OTP received and click on “Continue”. A system generated password and username will be sent on the registered mobile and email with ICMAI.

Q.8 How to Sign In to your UDIN Account?

Ans: Go to the link –– https://eicmai.org/udin and Enter your Membership Number and Password. Click “Login”.

Q.9 Password change post login is safe or not?

Ans: The password generated is encrypted to ensure safety. Members can change the password any time. “Change Password” is the icon in menu i.e used to change the password.

Q.10 How to generate a Unique Document Identification Number?

Ans: Login to UDIN Account. Click on “Generate UDIN”. Enter details like Client Reference Code/Number, Document Issued, Document Description, Date of Document, Keywords or Values (Minimum Three in number) in the document and click on the button “Send OTP”. Firm Registration Number is Optional to be entered. An OTP shall be sent to mobile and email, i.e registered with ICMAI. Enter the OTP received and click on the button “Preview”. Details you enter for generating the UDIN can be seen. Any change in content can be made by clicking “Back” button or click “Submit” if final. A UDIN will be generated and CMA can use that UDIN on the document for which it has been generated .UDIN that is generated will be displayed as a watermark on document(s) else the UDIN can be mentioned on the document(s) using ink. “List UDIN” menu is to be used to print UDIN.

Q.11 Can one look at the various certificate numbers generated?

Ans: Yes, this can be done using the search option.

Q.12 Is modification possible in case incorrect information has been submitted?

Ans: No change is possible once data is registered by a Cost Accountant (CMAs) in the online system. Preview of data entered is therefore advised before submission.

Q.13 Can a Certificate number once generated be revoked or get cancelled?

Ans: UDIN once generated can be withdrawn or cancelled with narration as explanation for such act. If any user shall search for a cancelled/withdrawn UDIN, appropriate narration given by Member along with date of revocation shall be displayed.

Q.14 Is there any validity of a UDIN for viewing by a third party or public?

Ans: There is no time limit as of now.

Q.15 Is UDIN compulsorily required to be registered for search?

Ans: Yes, UDIN shall be available for search by end user only after registration.

Q.16 What if on registration on UDIN Portal, the information does not get accepted or password does not get sent?

Ans: If the credentials do not match with the database as maintained by the regional offices of ICMAI, there may be a mismatch.

Q.17 Is online generation of UDIN mandatory? Can UDIN be generated offline and be entered in back date?

Ans: It is mandatory that numbers be generated in online mode only.

Q.18 Can UDIN be generated for a category of the area of certificate?

Ans: UDIN can be generated in specific area(s) of certificate issuance like GST, Banking, Companies Act, Income-tax Act, Finance, Capital Market, Public Finance and Government Accounting.

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice. Neither the authors accept any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

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Qualification: CMA
Company: Santosh sharma & Co.
Location: New Delhi, IN
Member Since: 15 Feb 2018 | Total Posts: 1

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