Background
Certain Companies and other entities as prescribed entities are governed by NFRA under Section 132 of the Companies Act,2013, read with NFRA Rules, 2018.
NFRA Annual Compliance by Auditor
- Auditor is required to file form NFRA-2 annually before 30 November governed by NFRA Authority.
- Rule 3(1) of NFRA Rules specifies the class of Companies which shall be governed by NFRA
- Companies whose securities are listed on any stock exchange in India or outside india.
- Unlisted Public Company having
- Paid up capital of not less than Rs 500 Cr
- Annual Turnover of not less than Rs 1000 Cr
- Outstanding Loans, deposits, debentures not less than Rs 500 Cr
- Insurance Companies
- Banking Companies
- Companies engaged in the generation or supply of electricity
- Companies governed by any Special Act
- Body Corporate incorporated by an Act in accordance with Section 1(4) with specified exception
- Any other body corporate, person or class of persons as referred by Central Government to NFRA in Public Interest
- Foreign Subsidiary or Associate Company of any Indian Company if net worth or Income of such foreign subsidiary or Associate Company is having more than 20% of the Consolidated income or net worth of such Indian Company.
Penalty for Non-filing of NFRA-2
- Penalty of Rs 5,000 and if contravention continues then up to Rs 500 per day till form is filed.
