Annual Return of Foreign Assets and Liabilities

1)If a company has received only share application money and does not have any FDI or ODI outstanding as on end-March of the reporting year, then that company is not required to fill up FLA return.

2)If the share application money is received from the existing non-resident shareholder, then the outstanding share application money should be reported at item Liabilities to Direct Investor, in the respective column, depending upon per cent of equity plus participating preference share holding by non-resident investor.

3)If the share application money is received from foreign investor who does not hold equity shares of Indian reporting company(say unrelated party) as on reference date, then outstanding share application money should be disclosed under Other receivable and payable accounts.