Discuss the statutory provisions which form the basis of observations of the auditor relating to receipt of export proceeds in convertible foreign…

Realisation and Repatriation of Export Proceeds: As per FEMA (Export of Goods & Services) Regulations, 2015, and the Master Direction on Export of Goods and Services, export proceeds must be realised and repatriated to India within the prescribed time limit: For normal goods and services: 9 months from the date of export. Where an exporter receives advance payment (with or without interest), from a buyer / third party named in the export declaration made by the exporter, outside India, the exporter shall be under an obligation to ensure that The shipment of goods is made within one year from the date of receipt of advance payment. In case of full conversion of ECB into equity, the reporting to the Reserve Bank will be as under: the entire portion is to be reported in Form FC-GPR, while reporting to DSIM in Form ECB 2 Return should be done with remarks "ECB fully converted to equity". Subsequent filing of Form ECB 2 Return is not required. Limit for financial commitment - (1) The total financial commitment made by an Indian entity in all the foreign entities taken together at the time of undertaking such commitment shall not exceed 400 percent of its net worth as on the date of the last audited balance sheet or as directed by the Reserve Bank, in consultation with Central Government from time to time.