Download Application for Direct Investment in Joint Venture/Wholly Owned Subsidiary Abroad through an Authorised Dealer

ODA [Paragraph 9A-5(iv)] APPLICATION FOR DIRECT INVESTMENT IN JOINT VENTURE(JV)/WHOLLY OWNED SUBSIDIARY (WOS) ABROAD THROUGH AN AUTHORISED DEALER (Please go through the instructions given in the Annexure carefully before filling up this form & enclose all the necessary documents/enclosures as indicated therein) To For use by RBI only Date of receipt : (Name and address of the authorised dealer) Inward No. : [All amounts of Foreign Currency (FC) and Indian Identification/ : Rupees (INR), should be in Approval No. thousands only] PART A - GENERAL I. Nature and category of application (Please tick(a)the appropriate box) : A. Fresh proposals (i) Participation in the equity of a proposed JV abroad (ii) Contribution to the equity of a proposed WOS abroad (iii) Full/partial* take over of an existing foreign concern B. Supplementary proposals** (a) (i) Enhancement of equity in existing JV/WOS abroad by ............................................ (please indicate the amount) (ii) Grant/enhancement of loan in existing JV/WOS for ............................................ (please indicate the amount) (iii) Extension/enhancement of guarantee for ........................ (please indicate the amount) * delete whichever is not applicable * * applicable in respect of existing JV/WOS (b) Particulars of the existing JV/WOS Name & Country Approval Amounts of investment of location of (Identification) approved the JV/WOS No.given by RBI Date Amount II. Name(s) of promoter(s) (a) Indian promoter (b) Foreign collaborator III. (a) Line of activity of the proposed JV/WOS [Please tick(a )the appropriate box ] (b) Brief particulars of the products to be manufactured/ goods to be traded/services to be rendered by the JV/WOS: (i) Manufacturing (ii) Trading (iii) Financial Services (iv)Non-Financial Services (v) Others( ) Please specify (b) Location (country) of the proposed JV/WOS : (c) Time-frame for project implementation : (i) Proposed date of commencement of the project implementation (ii) Proposed date of commencement of the commercial activity PART B-PARICULARS OF INDIAN PROMOTER IV. Address of Indian promoter : : (a) Registered office : : (b) For correspondence : V. (a) Status of the promoter[Please tick(a) the appropriate box]: Public Sector Undertaking Private Limited Company Public Limited Company Others ( ) Please specify (b) Name of the Industrial House/ Group to which the Indian promoter company belongs: (c) (i) Existing line of activity of the Indian promoter [please tick(a) the appropriate box] (ii) Brief particulars of the products manufactured/ goods traded/services rendered by the Indian promoter : (A) Manufacturing (B) Trading (C) Financial Services (D) Non-Financial Services (E) Other ( ) Please specify VI. (a) Date of incorporation : (b) Share Capital (Amount in INR) : As on (i) Authorised : (ii) Paid-up : (c) Reserves and Surplus (Amount in INR) (d) Years of experience in the proposed field of collaboration/operation : (e) Import Export Code Number : (f) % of Non-resident interest in share capital of the Indian company : (g) Details of EEFC A/c Account No. Name of Foreign Balance Amount Currency as on ........... (i) (ii) (iii) VII. Financial particulars of the Indian promoter company for the last 3 years : (Amount in INR) Accounting Domestic Foreign Foreign Net Net Net year ending sales exchange exchange fixed profit worth earnings earnings assets (+)/ from exportsother than loss(-) (excluding from exports equity exports to existing JV/WOS) (1) (2) (3) (4) (5) (6) (7) VIII. Particulars of all the existing JV/WOS of the Indian company where investments have been made under approvals granted by RBI under its Fast Track route or by authorised dealers out of EEFC route: (Amounts in FC) Sr. Name of the Approval/Identification Amount of investment No. overseas concern No. of RBI approved and its nature (i.e.JV or WOS) Equity Loan Guarantee (1) (2) (3) (4) (5) (6) PART C - PARTICULARS OF THE FOREIGN COLLABORATOR / CONCERN* IX. (a) Correspondence address of the foreign collaborator/concern : (b) Date of incorporation : : (c) Share capital (Amount in FC) : As on (i) Authorised : (ii) Paid-up : (d) Years of experience in the proposed field of collaboration : (e) Financial particulars of the foreign collaborator/concern during the last three years : (Amount in FC) Accounting Sales Net fixed Net Net Dividend year ending assets profits worth (%) (+)/loss(-) (1) (2) (3) (4) (5) (6) * In case of partial/full take over, particulars of the existing foreign concern are to be given here. PART D-FINANCIAL PACKAGE (Amount in FC ) X. (a) Estimated cost of the project (i) Cost of capital equipment (A) to be supplied from India : (B) to be procured from host country: (C) to be procured from third country: (ii) Cost of land : (iii) Cost of civil works : (iv) Cost of miscellaneous fixed assets: (v) Preliminary & pre-operative expenses: (vi) Contingencies : (vii) Margin for working capital : (viii)Others ( ) : Please specify Total* : (b) Equity share capital (i) Contribution by Indian promoter (s): Sr.No. Name Percentage of Amount total equity 1. 2. 3. 4. 5. Total : (ii) Contribution by foreign collaborator (s): Sr.No. Name Percentage of Amount total equity 1. 2. 3. 4. 5. Total : * In case of acquisition of an existing foreign concern only the acquisition price may be indicated here. (c) Debt Finance: Type of Debt Amount If approved in principle' by a Bank/ Financial Institution(FI), indicate the name of the Bank/FI (i) Term Loans (ii) Working capital loans Note: [Equity share capital plus term loan should be equal to the total cost of the project as at X (a) above] (d) Whether the Indian promoter intends to give loan/provide guarantee to/on behalf of the foreign concern, apart from subscription to equity capital ? If yes, give details : (i) Term/working capital loan Amount Rate of Repayment interest period (ii) Details of Guarantee Nature of Guarantee Amount Period of guarantee PART E - BENEFITS FROM THE PROPOSED INVESTMENT XI. Profitability Projections : (Amount in FC) Years of operation 1 2 3 4 5 (a) Gross sales/receipts (b) Operating cost excluding depreciation and interest (c) Depreciation (d) Interest (i) On term loans (ii) On working capital loans (e) Tax (f) Net Profit(+)/Loss(-) (g) Dividend (h) Transfer to reserves (i) Accumulated reserves &surplus(+)/loss(-) (j) Net worth Financial/Accounting year followed in host country to Date/Month to Date/Month XII. Repatriable entitlements of Indian promoter, net of host country tax : (Amount in FC) Years of operation 1 2 3 4 5 TOTAL (a) Dividend (b) Technical know- how fees (c) Royalty (d) Engineering/Technical services fees (e) Consultancy/ Management fees (f) Selling agency commission (g) Others ( ) Please specify TOTAL XIII. Projected non-equity/incremental exports by Indian promoter company to the foreign concern : (Amount in INR) Years of operation 1 2 3 4 5 TOTAL FOB value XIV. Projected Foreign investment inflows into India : (Amount in FC) Years of operation 1 2 3 4 5 TOTAL Amount XV. (a) Whether the applicant company/its promoters,directors, have come under invetigations by Enforcement Directorate/CBI/SEBI/other law enforcing agencies for violation of any law? If yes, the brief details thereof including present stage of investigation/adjudication/ manner of disposal of the case should be furnished. (b) Are the promoter company/ies presently under "Caution-List" of RBI for non- realisation of export proceeds ? If so, the present position may be indicated. XVI. Any other information relevant to this proposal. DECLARATION It is hereby certified that the information furnished above are true and correct. It is further certified that all the legal and other formalities in India and abroad including the requirement under the Companies Act, 1956 for the aforesaid overseas investment have been complied with/ completed. It is further confirmed that the amount of investment by way of equity, loan and 50% of guarantee as applied above and investments already approved by RBI under its fast track route and authorised dealers under the EEFC Fast Track window will not exceed US $ 15 mn.in a block of three years as per existing Exchange Control regulations. Place : Date : (Signature of authorised official) Name : Designation : Stamp/Seal List of enclosures : 1. 4. 2. 5. 3. 6. ANNEXURE Instructions for filling up the Form ODA (This part should be detached and retained by the applicant) 1. Please read carefully Chapter 9 (Part-A) of Exchange Control Manual (ECM) as amended from time to time and the "Guidelines for Indian Direct Investment in Joint Ventures and Wholly Owned Subsidiaries Abroad" notified by Government of India, Ministry of Commerce vide Notification No.4/1/93-EP(OI) dated 17th August 1995 read with subsequent Notifications dated 7th November 1996, 26th March 1997 and Notification No.4/3/97-EP(OI) dated 22nd August 1997 before filling up the form. 2. The application should be complete in all respects and accompanied by all relevant documents as specified below. Please write `NA' where not applicable. In respect of supplementary proposals involving extension of additional equity, loan or guarantee, the particulars furnished in the application in form ODA submitted earlier, need not be repeated; however, revised particulars, to the extent applicable, may only be indicated. 3. All amounts, both in FC and INR, should be rounded off to the nearest thousand and the same should be indicated after omitting '000,e.g.,10,499 and 10,500 should be shown as 10 and 11 respectively. 4. Wherever boxes are provided in items requiring date, the first two boxes are meant for the date, next two for the month and next four for the year. 5. Additional sheets may be attached only if the space available against a particular item is insufficient. 6. Applications must be submitted in three sets together with the following documents to the concerned authorised dealer maintaining the EEFC account of the applicant:- (a) A brief project/feasibility report incorporating, inter alia, projected Funds Flow Statements and Balance Sheets for five years, the information on various leverage & profitability ratios like debt-equity ratio, debt service coverage ratio, return on investments, etc. of the proposed foreign concern. (b) Statement from a Chartered Accountant verifying and certifying the ratios and profitability projections made in the project/feasibility report and the application. (c) If the application is made for partial/ full take over of an existing foreign concern, a Chartered Accountant's Certificate regarding the fair value of shares of the overseas concern. (d) A copy of the resolution of the Board of Directors of the Indian promoter company approving the proposed investment. (e) Where investment is in the financial services sector (e.g. insurance, mutual fund, asset management, etc.)a certificate from a Chartered Accountant certifying that - (i) The networth of the company (paid-up capital + free reserves) is equal to/more than Rs. 15 crores. (ii) The company has made net profit in the immediately preceding three years. (iii) The company has fulfilled the prudential norms of capital adequacy ratio of 8% of the risk weighted assets. (iv) The company is registered with SEBI as Category I Merchant Banker or with the Reserve Bank of India as a Non-Banking Finance Company (NBFC).