UDIN (Unique Document Identification Number)

Introduction to UDIN
Authenticity of documents is the priority in the present era of finance. Chartered Accountants (CAs) bear a serious responsibility to perform while signing, certifying, and attesting financial documents. With increasing reports of misuse of CA signatures and certificate forgery, the Institute of Chartered Accountants of India (ICAI) came up with UDIN (Unique Document Identification Number) as a precautionary measure. UDIN makes all documents certified by a CA traceable to them.

What is UDIN?
UDIN is an 18-digit unique identification number that is generated for documents attested or certified by practicing Chartered Accountants. ICAI launched it to maintain the integrity, authenticity, and credibility of CA-certified documents. The intent is to avoid duplication, forgery, or misrepresentation of financial documents.
Structure of UDIN:
•First 6 digits – ICAI membership number of the CA
•Next 6 digits – Date of issue in DDMMYY format
• Last 6 digits – System-generated distinct alpha-numeric code

Why Was UDIN Introduced?
The reason for the introduction of UDIN is to restrict fraudulent activities and enable only genuine Chartered Accountants to issue finance certificates. There were cases on the increase where a CA's signature or spurious certificates were issued by another person.

Reasons of utmost priority to implement:
• For deleting spurious or unauthorized certificates
• To retain practicing CAs' identity and work
• For enabling stakeholders such as banks and government bodies to verify documents
• To enhance transparency and confidence in the CA profession

When did UDIN become mandatory?
ICAI implemented UDIN phase-wise for easing transition:
• From 1st Feb 2019 – Mandatory on all certification certificates
• From 1st April 2019 – Rolled out to GST audit reports and tax audit
• From 1st July 2019 – Made mandatory for all audit and assurance services

UDIN Mandatory Documents
The CAs are mandated to create UDIN for the following documents:
• Statutory Audit Reports, Tax Audit Reports, GST Audit Reports, Internal Audit Reports
• Net Worth Certificates, Turnover Certificates, Capital Contribution Certificates, etc.
• Financial Statements signed or certified by a CA
• Valuation Reports
• Due Diligence Reports
• Management Representations and Assurance Reports
Important: If a document is an audit, assurance, or certification service, then UDIN must be generated.

Step-by-Step Procedure for Obtaining UDIN
Obtaining UDIN is a quick procedure and can be done online via the ICAI UDIN Portal.
Step-by-Step Procedure for Obtaining UDIN:

1. Visit the official ICAI UDIN portal – https://udin.icai.org
2. Login by using your member number and password
3. Select the type of document (certificate, audit, report, etc.)
4. Enter the details as needed:
     a. Date of signing
     b. Client name
     c. Document description
5. Click on 'Generate UDIN'
6. Quote the UDIN on the signed document
CAs must generate UDIN on or before 15 days from the date of signing of the document.

Who Can Verify UDIN and How?
Anyone or any organization can verify a UDIN to ascertain its authenticity of a document submitted by CA.
How to Validate:
• click: https://udin.icai.org/search-udin
• Enter the below details:
o UDIN number
o Client name
o Document type
• The system will verify and display CA credentials
This enables banks, authorities, and clients to ascertain on the spot that a document actually originates from a CA.

Benefits of UDIN to Stakeholders
To Chartered Accountants:
• Prevents misuse of their name and signature to a large extent
• Installs responsibility for every certified document
• Produces an audit trail of work performed that is traceable

To Clients and Businesses:
• Installs confidence and facilitates acceptance of CA-certified documents
• Protects documents from forgery and tampering
• Facilitates smooth loans, approvals, and grants

For Banks and Regulatory Authorities:
• Enables verification of documents fast and reliable
• Assists in detection and rejection of forged or tampered certificates
• Promotes compliance and audit integrity

Consequence of Failure to Use UDIN
If a CA fails to generate UDIN where it is required:
• ICAI can treat it as Professional Misconduct under the Chartered Accountants Act
• The report can be rejected by government officials, banking authorities, or regulatory authorities
• Clients face processing delay or lose faith in submission
• CA firms lose faith and destroy their reputation in the market

How UDIN Helps CA Firms to Win More Business
CA firms can utilize UDIN as a way of representing professionalism and compliance. Firms that make clients aware of the significance of UDIN are more reliable and get serious business clients.
CA Firms can Use UDIN to Expand through the Following Means:
•Emphasize UDIN-compliant services on advertising documents and tenders
•Emphasize document transparency and safety in interactions with customers
•Offer UDIN verification support to firms and businesspersons
• Earn client trust in dealing with banks and government bodies
Companies that provide such a guarantee of compliance, legality, and accuracy in dealing with documents are likely to be chosen by clients — and UDIN provides such a extremely high guarantee.

Real-Life Scenario: Significance of UDIN
Take the example of a startup accessing a government subsidy or bank finance. They get a Net Worth Certificate signed by a CA. If the certificate has a legitimate UDIN, the bank may check on the spot its validity on the ICAI website. If no UDIN is available, objections may be raised or the request refused. So, UDIN does away with unwanted delays, improves document genuineness, and improves chances of approval.

Frequently Asked Questions (FAQs)
Q1. Who is eligible to create a UDIN?
Only registered practicing Chartered Accountants are eligible to create UDIN only.

Q2. Is UDIN mandatory on all documents signed by a CA?
Yes, UDIN is mandatory on all audit, assurance-related documents, and certificates.

Q3. What will happen if one fails to create UDIN on a document?
The document is likely to be invalid, and the CA will be subject to disciplinary actions by ICAI.

Q4. Is it possible for anyone to trace UDIN?
Yes, any person can confirm UDIN on the ICAI portal by providing the UDIN and document information.

Q5. Is a once-issued UDIN permitted to be amended?
No, UDIN cannot be amended. But it may be withdrawn and fresh UDIN can be obtained.

Q6. How long does it take to create a UDIN?
UDIN shall be created during the signing or within 15 days from the date of signing of the document.

Conclusion
UDIN is not just a compliance measure—it's a useful way of safeguarding the trust, integrity, and professionalism of the Chartered Accountancy profession in India. It prevents documents from being certified by anyone other than qualified, registered CAs, and enables banks, clients, and regulators to verify their authenticity. For CA firms, adherence to UDIN guidelines not only prevents punishment but also creates client confidence and opens up business opportunities.