Checklist for Filling and Certification of ECB Return
|1.|| Check whether the ECB-2 return is being filed within 7 working days
from the close of the month through the designated authorized dealer. If there is no transaction during a particular period, a nil return should be submitted.
|2.||Check whether the unique loan Identification Number (LIN)/RBI Registration Number (in case of loan approved prior to February 01, 2004) is be specified as allotted by RBI. Check form 83 for loan A/c no for details filed by the company and RBI letter for approval terms and LIN.|
|3.||Check whether the expenditure is in accordance with the terms and conditions of the loan agreement and with the approval granted by Government of India (MOF) or RBI or under approval route / automatic route and is in conformity with the ECB guidelines issued by the government.|
|4.||Check the purpose for which borrowings have been utilized by scrutinizing the books of accounts.|
|5.||Check whether the company has used ECB for:-
•On-lending or investment in capital market or acquiring a
company (or a part thereof) in India
•Real estate (the term real estate excludes development of
integrated township as defined by Ministry of Commerce and
Industry, Dipp, SIA (FC division), press note 3 (2002 series) dated
January 4, 2002).
•Working capital, general corporate purpose and repayment of
existing rupee loans.
All the above are not allowed under the present ECB guidelines.
Check whether the declaration for stating that ECB has not be utilised for
on-lending or investment in capital market or acquiring a company / real
estate /working capital, general corporate purpose and repayment of
existing rupee loans , signed by the director of the company is received by
Certifier for his file.
|6.||Check whether a statement showing draw down details and
corresponding expenditure signed by the director of the company is
received by Certifier for his file.
|7.||Check whether the bank statement for the relevant month signed by the director of the company is received by Certifier for his file.|
|8.||Check whether the statement for the amount of loan committed but not
yet drawn at the end of the month (in loan currency) signed by the
director of the company is received by Certifier for his file.
|9.|| Check whether the statement for the balance amount of loan to be drawn
in future signed by the director of the company is received by Certifier
for his file.
|10.||Check the utilization of amount parked abroad.|
|11|| Check whether the balance is invested in the following liquid assets only
(a) deposits or certificate of deposit or other products offered by banks
rated not less than aa (-) by standard and poor/fitch ibca or aa3 by
moody’s, (b) treasury bills and other monetary instruments of one year
maturity having minimum rating as indicated above, and (c) deposits with
overseas branches / subsidiaries of Indian banks abroad.
|12|| Check whether the balance is invested in such a way that the investments
can be liquidated as and when funds are required by the borrower in
|13.|| Check the details of debt servicing and the related remittance.
Keep the copy of the remittance signed by the director of the company is
received by Certifier for his file for its file.
|14.|| Check the derivative transaction (interest rate, currency swap) relating to
ECB entered into by the company.
|15.||Check the details of revised principal payment schedule, if any.|
|16.||Check whether the ledger copy of the loan account showing the month
end balance signed by the accounts in charge and director of the company
is received by Certifier for his file for its file.
|17.||Check whether all dates should be in format yyyy/mm/dd.|