Requirement Filing of NFRA-1 National Financial Reporting Authority- Series - 406

Requirement Filing of NFRA-1

National Financial Reporting Authority

There is question in mind of professionals/ corporate i.e. As per Rule 3(2) of NFRA “Every existing body corporate other than a company governed by these rules, shall inform the Authority within thirty days of the commencement of these rules, in Form NFRA-1, the particulars of the auditor as on the date of commencement of these rules.”

1.     Whether every Company, which are not covered in NFRA rules are required to file NFRA -1?

2.     Which are the Companies on whom NFRA rules are applicable?

   A.    Companies cover under NFRA:

a)  All Listed Companies/ Listed Body Corporate;

Body Corporate: body corporate" or "corporation" includes a company incorporated outside India,

b) Unlisted Public Companies with 

- Paid up Capital or Loans > = INR 500 crores OR 

- Turnover > = INR 1000 crores OR 

- Outstanding Loan, Debentures and Deposit >= INR 500 crores

**Above Limits shall be check on as on the 31^st March of immediately preceding financial year;

·        Banking Companies

·        Insurance

·        Electricity Companies

·        Special Act Companies

  c)  Body corporate; or Company; or Person on a reference made by CG in public interest .

  d) Certain specific foreign Subsidiaries/Associates of Indian Companies

  **NOTE: Once a Company falls under the above limits under NFRA, will be          covered by NFRA for 3 More years.  

   

    Whether every Company, which are not covered in NFRA rules are required to file

    NFRA -1?

   As per Rules, Every existing body corporate, other than a company, governed by       these rules, shall inform the Authority within thirty days of the commencement of       these rules, in Form NFRA-1, the particulars of the auditor as on the date of              commencement of these rules.

   Note: NFRA-1 shall be required to file by a “BODY CORPORATE” which not covers i   In above mentioned companies.

   Therefore, it can be opine that Indian Companies are not required to file NFRA-1.       Only body corporate are required to file the same.

   B.Other Compliance:

    · Everybody corporate shall within 15 days of appointment of an auditor, inform the Authority about the particulars of the auditors appointed by the body corporate, inform NFRA-1;

   Note: Indian Cos. are exempted from this requirement.

    ·Annual return - Every auditor referred to in rule 3 shall file a return with the Authority on or before 30^th April every year in such form as may be specified by the Central Government

Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com). Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION