Annual return on Foreign Liabilities and Assets (FLA) is an annual return of all investments made in the company during a financial year. It was notified in FEMA. It is required to be submitted directly by the Company to the RBI. It has been introduced to capture the statistics relating to Foreign Direct Investment (FDI), both inward and outward in a more comprehensive manner as also to align it with international best practices. The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets. However, if the company has not ‘received any fresh FDI and/or ODI (overseas direct investment)’ in the latest year but the company has outstanding FDI and/or ODI, then that company is also required to submit the FLA Return every year by July 15. Non-filing of the return before due date will be treated as a violation of FEMA and will attract huge penalties.