Understanding APR Filing for ODI: Do Not Miss the 31st December Deadline

If your business has invested overseas through a Joint Venture (JV) or Wholly Owned Subsidiary (WOS), filing the Annual Performance Report (APR) is a mandatory compliance requirement under the Foreign Exchange Management Act (FEMA).

Every Indian company or resident individual that has made an Overseas Direct Investment (ODI) must file the APR for its overseas entity.

Due date

The APR is due by 31st December of each year for the preceding financial year.

Failure to file the APR on time may result in FEMA contraventions, penalties, or late submission fees.

What does the APR include?

The APR captures key information relating to the overseas entity, including:

• Capital structure and financial performance
• Investments, loans, guarantees, and repatriations
• Net worth and operational status of the overseas entity
• Compliance confirmations and other regulatory disclosures

Where the overseas entity is not required to undergo a statutory audit under the laws of the host country, the APR must be certified by a Chartered Accountant before submission.

Who is required to file the APR?

APR filing is mandatory for:

• Indian companies having ODI in a foreign JV or WOS
• Resident individuals who have made ODI

The report may be filed by one authorised investor on behalf of all investors or jointly by all investors, as applicable.

Common mistakes that can trigger regulatory scrutiny

Avoid these frequently observed errors:

• Carrying forward previous year's figures without reconciling bank statements and accounting records
• Mismatch between ODI records, share certificates, and financial statements of the overseas entity
• Non-disclosure of changes in capital structure, additional investments, guarantees, write-offs, or impairment of investments
• Failure to obtain the required certification where statutory audit is not applicable

Practical tip

Do not wait until December to start the process. Collect financial statements, investment records, shareholding details, and bank documents well in advance to ensure timely and accurate filing.

Timely APR filing not only ensures FEMA compliance but also helps avoid future complications during audits, due diligence exercises, fundraising, or cross-border transactions.