FLA Return - Foreign Liabilities and Assets (FLA) is an annual filing requirement in India that aims to gather information about the foreign financial assets and liabilities of Indian entities.

1. Annual FLA
Return - Foreign
Liabilities and
Assets
2023

2. INDEX
Since 1995
Brief overview of FLA and its purpose
1
2 Compliance and reporting aspects of FLA
3 Scope and Applicability
5 Due Diligence Requirements
6 Penalties for Non-Compliance
6 About us

3. FLA Return and its Purpose
Since 1995
FLA Return - Foreign Liabilities and Assets (FLA) is an annual filing requirement in India
that aims to gather information about the foreign financial assets and liabilities of
Indian entities. Its purpose is to:
• FLA Return helps authorities monitor India's external position by capturing data on
foreign assets and liabilities held by Indian entities.
• The data collected through FLA Returns contributes to the compilation of India's
balance of payments (BoP) and the country's international investment position.
• The information obtained from FLA Returns assists policymakers in formulating
effective economic and financial policies.
• FLA Return promotes compliance and transparency among Indian entities engaged
in international transactions.

4. FLA Return and its Purpose
Since 1995
• Researchers, economists, and analysts use FLA data to analyze trends, assess the
impact of policies, and conduct various studies related to India's external sector.
• FLA data aids in managing India's external debt and assessing the country's
vulnerability to global economic fluctuations.
• FLA data is valuable for India's central bank in managing foreign exchange reserves
and making informed decisions about exchange rate policies.
• Accurate FLA reporting helps in maintaining economic stability and ensures better
integration with the global economy.
• The data collected in FLA Returns enables monitoring of Foreign Direct Investment
(FDI) and Foreign Portfolio Investment (FPI) in India.
• Filing FLA Returns is mandatory for specified Indian entities, ensuring adherence to
reporting requirements and avoiding penalties.

5. Compliances of FLA Return
Since 1995
FLA Return - Foreign Liabilities and Assets (FLA) is an annual filing requirement in India
that aims to gather information about the foreign financial assets and liabilities of Indian
entities. Its purpose is to:
Monitor External Position: FLA Return helps authorities monitor India's external position
by capturing data on foreign assets and liabilities held by Indian entities.
Balance of Payments: The data collected through FLA Returns contributes to the
compilation of India's balance of payments (BoP) and the country's international investment
position.
Economic Policy Formulation: The information obtained from FLA Returns assists
policymakers in formulating effective economic and financial policies.
Compliance and Transparency: FLA Return promotes compliance and transparency
among Indian entities engaged in international transactions.

6. Funding Stages Explained
Since 1995
Data Source for Research: Researchers, economists, and analysts use FLA data to
analyze trends, assess the impact of policies, and conduct various studies related to India's
external sector.
External Debt Management: FLA data aids in managing India's external debt and assessing
the country's vulnerability to global economic fluctuations.
Reserve Management: FLA data is valuable for India's central bank in managing foreign
exchange reserves and making informed decisions about exchange rate policies.
Support Economic Stability: Accurate FLA reporting helps in maintaining economic stability
and ensures better integration with the global economy.
Monitoring FDI and FPI: The data collected in FLA Returns enables monitoring of Foreign
Direct Investment (FDI) and Foreign Portfolio Investment (FPI) in India.
Regulatory Compliance: Filing FLA Returns is mandatory for specified Indian entities,
ensuring adherence to reporting requirements and avoiding penalties.

7. Scope
 FLA Return is a reporting requirement imposed by the Reserve
Bank of India (RBI).
 It captures information on the foreign financial assets and
liabilities of Indian entities.
 The data collected through FLA Returns contributes to India's
balance of payments (BoP) and external debt statistics.
Since 1995
Applicability
Indian Entities: FLA Return is applicable to certain Indian entities, including
companies, (LLPs), trusts, societies, etc.
Reporting Threshold:
Companies: All companies that have received Foreign Direct Investment
(FDI) or made Foreign Direct Investment (FDI) during the financial year.
LLPs: All LLPs that have made FDI or received FDI during the financial year.
Others: Entities that have outstanding foreign liabilities and assets equal to or
exceeding the specified threshold.
Exemptions: Small and medium-sized companies, as defined by the Ministry
of Corporate Affairs (MCA), may be exempt from filing the FLA Return.
Scope and Applicability

8. Reporting
Format:
Since 1995
Reporting Period:
Due Date:
The due date for filing the FLA Return is usually in
July or as specified by the RBI.
Data Elements:
The FLA Return collects various details, including foreign
equity, debt, trade credits, loans, borrowings, deposits, and
other financial assets and liabilities.
Amendments
and
Corrections:
Entities must promptly notify the RBI and make
necessary amendments if any errors are discovered
after submission.
Scope and Applicability
The FLA Return captures data as of the last date of the financial
year, typically March 31st.
Entities must submit the FLA Return online using the specified
reporting platform provided by the RBI

9. Due Diligence Requirements of FLA Return
Since 1995
Identification of
Reporting Entities
Collection of Data
Classification of Assets
and Liabilities
Verification of Data
Reconciliation with
Other Reports
Compliance with
Reporting Threshold

10. Penalties for Non-Compliance
Since 1995
Penalties for non-compliance of FLA (Foreign Liabilities and Assets) Return involve potential
consequences for entities that fail to fulfill their reporting obligations. Here are the key points
regarding penalties:
Late Filing: Failure to submit the FLA Return within the specified due date may attract
penalties.
RBI Action: The Reserve Bank of India (RBI) may take appropriate action against entities
that do not comply with FLA reporting requirements.
Monetary Penalty: Entities found in non-compliance may be subject to monetary fines
imposed by the RBI.
Legal Action: In severe cases of non-compliance, the RBI may initiate legal proceedings
against the defaulting entities.
Impact on Other Transactions: Non-compliance with FLA reporting could affect an entity's
ability to engage in certain international financial transactions.
Reputational Risk: Failure to comply with FLA reporting obligations can lead to reputational
damage for the entity.
Difficulty in Banking Transactions: Non-compliance may create difficulties in accessing
banking services or obtaining necessary approvals.

11. Why Choose us
Since 1995
 One Stop Solution for All
your Funding requirements
in all stages of the Funding
requirements.
 Strong Network of
Incubation, Crowd Funders,
VC and PE firms.
 Integrated consultation in
financial affairs, Funding
and beyond
 In House capabilities for
Valuation process.
1 2
3 4

12. ASC Group started in 1995 as a CA firm with a view to offer all accounting and financial services for individuals and
corporates under one roof.
It has a team of more than 300+ people including 120 experts comprising of Chartered Accountants, Company Secretaries,
Advocates, Insolvency Professionals and Management Professionals. Being Registered Office in Delhi, it has several branches
in India like Noida, Gurugram, Mumbai, Bangalore, Chennai and overseas countries with a branch office set up in Singapore
and Canada.
ASC Group is offering services through many interlinked entities: Alok Sinhal & Co. (the original Chartered Accountant firm),
Themis and Dike (the legal arm of the ASC group), ASC Consulting Private Limited (catering to multinationals doing business
in India), ASC Consulting Pvt. Ltd. (serving to corporates located in Singapore), ASC Ventures Corp (serving to corporates
located in Canada) etc.
Personal
Attention
Practical
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Advice
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Solutions
Singapore
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Delhi
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Gurugram
Mumbai
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Pune
Since 1995
The Firm’s rich heritage is apparent in the values for which we stand – integrity, reliability & proficiency. It is our considered
policy to provide professional services in a conservative manner with due attention to the security and propriety of the
transactions involved.
About ASC Group

13. Taxation
01
Risk Advisory &
Assurance
02
Secretarial &
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03 Consulting
04
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Since 1995
Services

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(India)
P: 011-41729056-57,
41601289
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Phone:
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/ 116
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Since 1995
Contact us
CONTACT US ON ANY QUERY
ON FLA RETURN
 9999043311
 info@ascgroup.in

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