About this certificate

This certificate states an entity's unhedged foreign currency exposure as at a year end, and its earnings before interest and depreciation for the year. Banks ask for it under the RBI's Unhedged Foreign Currency Exposure Directions. It is drafted to the illustrative format in the ICAI Handbook on Certificates by Chartered Accountants (October 2025), Annexure III.

You must be the auditor

This is the first certificate here titled Independent Auditor's Certificate rather than Independent Practitioner's.

That is not a label. The format's own wording says the financial statements were "audited by me/us" — there is no "or another firm", and nothing to rely on. Annexure I of the handbook requires the title to reflect whether the firm signing is the statutory auditor.

What it certifies

Two things, and both are extraction assertions:

The exposure figures

That the information in the Statement was extracted from the audited financial statements.

EBID

That the amounts behind it were extracted from those statements and that the computation accords with the RBI Direction.

It does not certify that the entity's hedging policy is adequate, or that the unhedged position is prudent. It certifies that the numbers came from the accounts and that EBID was worked out the way the RBI says.

Two formats that are not ours

The grid in Statement A is FEDAI's, fixed by special circular SBL-0.5.BC/UFCE Format/2018 dated 17 May 2018. Its rows, its columns and its unit are all prescribed.

EBID's definition is the RBI's: Profit After Tax + Depreciation + Interest on debt + Lease Rentals, if any. The certificate asserts that the computation follows it, so OptiVida computes it rather than letting you type a total that could contradict what you are certifying.

Exposures sort themselves

The circular lists eight exposure lines under two headings. You pick the exposure; OptiVida knows which side it belongs to.

FCY ReceivablesExports · Loans to JV/WOS · Others

What is owed to the entity in foreign currency.

FCY PayablesImports · Trade Credits · ECBs · Other FCY loans · INR to USD swaps

What the entity owes.

The two Total columns are computed from the maturity buckets beside them, and every numeric column carries a total at the foot.

The declaration is the entity's

Statement A carries a declaration that all derivative contracts treated as hedging contracts conform to ICAI pronouncements on hedge effectiveness. That declaration is signed "Yours sincerely / Authorised Signatory" — by the entity, not by you.

You separately initial the same page for identification, as with every other Statement. Both signatures appear on it.

When a parent hedges the exposure

Where part of the exposure is hedged and managed by a parent entity, the handbook prints a bracketed disclosure explaining why it has been left out of the unhedged position.

Enter the amount and the date of the letter explaining it, and the sentence appears. Leave it empty and the sentence does not appear at all, rather than printing with blanks in it.