The “National Financial Reporting Authority” constituted as per sub-section (1) of section 132 of Companies Act, 2013 to provide for matters relating to accounting and auditing standards under the Companies Act, 2013.
The National Financial Reporting Authority Rules, 2018 published vide Ministry of Corporate Affairs Gazattee Notification No. G.S.R. 1111(E) dated 13th November, 2018.
As per Rules 3(1) of – following classes of companies will be governed by NFRA Rules:
(a) Listed companies;
(b) Unlisted companies with paid up capital of INR 500 CR or more / Annual Turnover of INR 1000 CR or more / outstanding loans, debentures and deposit of more than INR 500 Cr or more, as on 31st March of immediate preceding FY
(c) Insurance Companies, banking companies, companies with business of generation or supply of electricity, companies governed with special act or companies incorporated in reference with clauses (b) to (f) of Section 1(4)
(d) Any reference made by Central Government to NFRA authority
(e) Body corporate registered outside India, which is subsidiary or associate company of companies / body corporate registered in India, with income / Networth of subsidiary or associate company is +20% of consolidated income / consolidated Networth (body corporate as defined in this clause are required to file Form NFRA – 1)
Rule 3(2) – Following companies to file Form NFRA – 1 (details of auditor) within 30 days from rules been notified:
(f) Private companies
(g) Unlisted companies which are not covered under Rule 3(1)
(h) Any other companies / body corporate which are not governed under NFRA authority and NFRA Rules
Rule 3(3) – Following body corporate to file Form NFRA – 1 on appointment of auditor within 15 days:
Please note that as per Rule 3(2), companies from (a) to (d) are not required to file form NFRA – 1.
NFRA Form-1 filing Before 31st July, 2019
In line with the above background, the NFRA Website is active and public can access the website and download Form NFRA-1 on https://nfra.gov.in/.
Further, vide notification no. NF-11/1/2019-O/0 Secy-NFRA dated 1st July , 2019, notified the last date of filling up Form NFRA-1.
The Entities as stated in 3(2) and 3(3) of the Gazette Notification dated 13th November, 2018 are required to inform the details of appointment of their auditor to the Authority in Form NFRA-1.
Subsequently, the time limit for filing NFRA-1 will be 30 days from deployment of Form on the Website of NFRA https://nfra.gov.in/.
In connection to the above, it is intimated that Form NFRA-1 is available on https://nfra.gov.in/ and the last date of filing the same by Entities concerned is 31st July, 2019.
(The author is Practising Company Secretary and can be reached at 8375877464 or E-mail firstname.lastname@example.org)