The NFRA-2 is a mandatory annual return that certain auditors must file with the National Financial Reporting Authority (NFRA) by November 30th each year1. This return serves as a report on the auditor’s practice and their adherence to NFRA regulations2. It is required for auditors of specific companies and bodies corporate, including those that are listed, large unlisted public companies with a paid-up capital of Rs. 500 Cr or more, or an annual turnover of Rs. 1,000 Cr or more3. Companies engaged in specialized activities like banking, insurance, or electricity generation are also included4. For the NFRA-2 return due on November 30, 2025, the reporting period is April 1, 2024, to March 31, 2025, covering audit reports signed off during this time, which typically pertain to the financial statements for the year ending March 31, 20245. The return’s contents include the auditor’s identity, details of their audit clients, fee information, and any disciplinary proceedings they have faced.
National Financial Reporting Authority, India
NFRA-2 Annual Return Know ‘Why’ & ‘How’
What is NFRA-2 Annual Return?
| NFRA-2 is an annual return that specified auditors must file with the National Financial Reporting Authority (NFRA). It serves as a report by the auditor regarding their practice and compliance with NFRA rules. This return is mandatory for the auditors of a specified class of companies, including listed companies, large unlisted public companies, and companies in sectors like banking and insurance. (Refer Rule 5 read with 3 of NFRA Rules 2018) | As per NFRA Rules 2018, “Every auditor of companies & body corporate specified in rule 3 shall file a return with the Authority on or before 30th November every year in such form as may be specified by the Central Government.” |
Who is required to file NFRA-2 ?
| Auditors of following class of companies and bodies corporate | |||
| Category | Prescribed Criteria | ||
| Listed Companies | whose securities are listed on any stock exchange in India or outside India | ||
| Unlisted Public
Companies
|
i) Paid up capital of not less than ₹ 500 Cr | ii) Annual Turnover of not less than ₹ 1,000 Cr | iii) Aggregate outstanding loans, debentures and deposits of not less than ₹ 500 Cr |
| Companies engaged in Specialized Activities and Special Act | Insurance Companies | Banking Companies | Generation or Supply of Electricity |
| Company governed by Special Act | Company & Body Corporate incorporated by an Act in accordance with clauses (b) to (f) of sub-section 4 of section 1 of the | ||
| Central Govt reference in public interest | any body corporate or company or person, or any class of bodies corporate or companies or persons | ||
| Foreign Body Corporate | Foreign incorporated Subsidiary or Associate of any company or body corporate mentioned above and whose net worth or income exceeds 20% of the Consolidated net worth or income | ||
What is the Reporting Period for NFRA-2 due on 30th November 2025 ?
❖ In the case of NFRA-2 due by 30th November 2025, the reporting period is 1st April 2024 to 31st March 2025.
❖ In the NFRA-2 due by 30th November 2025, details of audit reports signed off during the reporting period 1st April 2024 to 31st March 2025 will have to be reported. In most cases, these audit reports will relate to audit of financial statements for the year 1st April 2023 to 31st March 2024.
❖ Refer FAQ #18 on NFRA website and the table below for further guidance.
| NFRA-2 Filing Due Dates | Reporting Period in clause 2 of NFRA-2 | Audit Reports signed off during the year | Financial Statements for the year (in most cases) |
| 30.11.2025 | 01.04.2024-31.03.2025 | 01.04.2024-31.03.2025 | 01.04.2023-31.03.2024 |
| 30.11.2024 | 01.04.2023-31.03.2024 | 01.04.2023-31.03.2024 | 01.04.2022-31.03.2023 |
| 30.11.2023 | 01.04.2022-31.03.2023 | 01.04.2022-31.03.2023 | 01.04.2021-31.03.2022 |
What are the key contents of NFRA -2?
- Identity of the auditor and contact persons
- Audit clients and audit reports of the auditor (and fees related information)
- Audit-related memberships, affiliations, or similar arrangements of the auditor
- Partners and Employees of the Auditor
- Details of any Disciplinary or Other Proceedings initiated against the Auditor
- Resignations and Withdrawal of Audit Reports
- Quality Control Policies of the Auditor
- Consent to co-operate and comply with any information request by NFRA
QUICK LINKS
i) Frequently Asked Questions pertaining to NFRA-2:
ii) User Registration instructions for NFRA-2 e-form:
https://eformnfra2.nic.in/resources/docs/NFRA%202%20User%20Registration%20Instructions_v%201.pdf
https://cdnbbsr.s3waas.gov.in/s3e2ad76f2326fbc6b56a45a56c59fafdb/uploads/2023/01/2023010585.pdf 40=
v) NFRA-2 e-form:
https://eformnfra2.nic.in/
