Online Module for Submission of Form 7 – Annual Report on Statement of Accounts

The Karnataka RERA Authorities have introduced an online module to report, submit the information, documents, certificates, audited financial statements through the RERA portal. The contents of the Circular dated 13^th Oct 2022 are as follows –

1. Due date for filing the Annual Audit in Form 7 for the financial year 2021-22 is 15^th November 2022.

2. Such Annual Audit report along with the documents shall be uploaded online

3. Documents include –

a. Audited Profit and Loss Account, Balance Sheet along with schedules

b. Cash flow statement

c. Income Tax Returns

d. Auditors Report

e. RERA Designated Bank Account Statement during Financial Year 2021-22

f. List of Agents engaged by the promoter with their registration details

g. Form 7 duly certified by a Chartered Accountant in practice.

Refer to Karnataka RERA’s new format FORM 7 during September 2022 wherein the detailed information with respect to the rera registered project shall be certified a Chartered Accountant holding certificate of practice.

As Karnataka RERA notified the new format Format for the Annual Report on Statement of Accounts, it has become necessary to deliberate on the contents of the new format for the benefit of the industry and members.

Professional Approach and preparedness to upload and submit the RERA Annual Report online –

1. Click here to start uploading the Annual Audit Report for the Financial Year 2021-22 – https://rera.karnataka.gov.in/applyForAnnualReport

2. Once the RERA Registration number is entered, the OTP will go to the registered mail id and mobile number of the promoter.

3. Few Excel formats are available at respective sections on login into the Annual Audit module – following are the headers of the excel – professionals or promoters keep these excel ready to upload.

a. agent Details

b. AOS details

c. bank Details

d. form4 Details

 e. loan Details

 f. quarter Form Details

g.  with drawl Details

4. Once the Details and documents are ready, professionals or promoters can start uploading and submit online

5. The newly notified form 7 is exhaustive and covers the entire project financials, cash flow, various compliances mandated under the RERA Act. The certifying professional shall understand each provision before certifying the Annual Report on Statement of accounts and its annexure thereon.

6. Non-compliance / non-furnishing of Form 7 (Annual Audit of Accounts Reports) shall attract penal provisions under RERA Act 2016. The Authority is having the power to impose penalties in accordance with Sec 60 of the RERA Act. Such penalty may extend upto 5 % of the estimated cost of the real estate project as determined by the Authority.

The summary of the new form 7 is as follows –

1. Report on Statement of Accounts on project fund utilisation and withdrawal –

Annexure A –

a. Table A – amount collected from the allottees of the project – points to be considered while filling and certification –

b. Table B – Amount incurred by the Promoter (the details are similar to the Form 4, Quarterly update CA Certificate format)

c. Table C – summary of total collections and realisation since the inception of the project –

d. Table D – Liabilities towards the Project development

e. Table E – Liabilities towards Bank Borrowings –

f. Table F – Liability based on the orders of RERA authority, Appellate

Annexure B

g. Further the professional shall certify various provisions under RERA. The brief of the compliances is as under –

i. Compliance with respect to the RERA bank account

ii. Details of all quarterly update certificates and details of filings quarter on quarter.

iii. RERA Bank account directions 2020 contents shall be read, understand before certifying this Form 7.

iv. Section 13 compliance – Section 13 mandates the registration of agreement of sale, if the promoter wishes to collect in excess of 10 % of the project cost and report non-compliances

v. Details of borrowing by mortgaging the project land etc

vi. Details of forms 4,5,6

vii. List of Agents engaged as per project

The new Form 7 is in pdf and available at https://rera.karnataka.gov.in/downloadPage –

Further, the Authority has sent the mail to all the promoters, the extract is as follows –

Dear Promoter,

As per section 4(2)(l)(D) of the RERA act 2016 promoter should upload the annual audited accounts within six months after the end of the financial year by a chartered accountant in practice, Hence authority facilitates the annual audit module to upload the annual audit report (Form-07 ) with extended date upto nov 15th 2022. Further, even if any promoter has already uploaded the annual audit report (Form-07) in the quarterly updates module, please upload the annual audit report (Form-07 ) in the annual audit module only.

To Submit the Annual Audit report https://rera.karnataka.gov.in/applyForAnnualReport

Circular RERA/Accounts/129/2021-22 link https://rera.karnataka.gov.in/reraDocument?DOC=s5xz54dYBUE1XB6nm5TzWA%3D%3D

Form-07 format available in downloads section https://rera.karnataka.gov.in/downloadPage

Best Regards,

Karnataka Real Estate Regulatory Authority.  

Conclusion – The online submission of details of the Audit of Accounts under RERA is based on the duly certified Form 7. Collect and retain the soft copy of Excel or Word format of form 7 (finalised), so that the contents can be copied and pasted in the online module instead of making manual entries. As the due date is approaching (15^th Nov 2022, unless the extension of the date is permitted), it is recommended to the promoters to obtain and submit within the due date to avoid penal provisions under the Act.

The Author is a practicing Chartered Accountant at Bengaluru, you can reach the author at [email protected] for further clarifications