NFRA Annual Return

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.