The Annual Performance Report (APR) is required for entities like Indian entities with overseas direct investments (ODI) in foreign joint ventures (JV) or wholly owned subsidiaries (WOS). Filing the APR is governed by the Reserve Bank of India’s (RBI) regulations to monitor and ensure compliance with ODI guidelines.

Who Needs to File the APR?

• Indian entities or individuals who have invested in a foreign JV/WOS under the ODI route.
• This includes investments in equity, loans, or guarantees.

Key Requirements for Filing the APR

1. When to File:
   • The APR must be filed annually by December 31 of each year for the financial year ending on March 31.
   • It covers the performance of the foreign entity for the last completed financial year.
2. Where to File:
   • The APR is filed through the Authorized Dealer (AD) bank, which processes the Indian entity’s ODI transactions.
3. Preconditions:
   • The Indian investor must not be in violation of any ODI regulations.
   • APR cannot be filed if there are outstanding overdue returns (e.g., overdue APRs or Form FC-GPR filings).

Documents Required

1. Audited Financial Statements of the foreign JV/WOS:
   • These should be for the most recent financial year.
   • If audited financials are not available, unaudited financials can be submitted with a justification.
2. Investment Details:
   • Information about equity, loans, or guarantees provided to the foreign entity.
3. Bank Confirmation:
   • Certification from the AD bank for the investment details.
4. Details of Operations:
   • A summary of the performance and activities of the foreign entity.

Steps for Filing APR

1. Gather Documentation:
   • Collect audited/unaudited financial statements and other relevant documents.
   • Ensure all financial and operational information is accurate.
2. Submit to the Authorized Dealer Bank:
   • Prepare the APR using the prescribed format as per RBI guidelines.
   • Submit it along with supporting documents to the AD bank.
3. Follow Up:
   • The AD bank will verify the details and submit the APR to the RBI.
   • Respond promptly to any queries from the bank to ensure timely filing.
4. Rectify Non-compliance:
   • If there are any past due filings, work with your AD bank to resolve them before submitting the APR.

Consequences of Non-compliance

• Penalties under FEMA (Foreign Exchange Management Act).
• Restricted access to further overseas investments or financial services.

Would you like help with a specific part of this process, such as preparing the APR or resolving compliance issues?