Provisional List of Companies within the ambit of NFRA

TG Team 18 Feb 2022 15,051 Views 0 comment Print Company Law | Circulars, Notifications/Circulars

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National Financial Reporting Authority (NFRA) has prepared a database as of 31st March, 2021 of companies prescribed by the Central Government under Rule 3 (1) of NFRA Rules, 2018. This database also contains the details of statutory auditors of such companies based on the data sources currently available with NFRA.

Government of India
National Financial Reporting Authority

No. NF- 22/4/2022 | Dated: 18.02.2022

Provisional List of Companies within the ambit of NFRA as of 31 March 2021

(Refer Rule 3(1) of NFRA Rules 2018)

1	National Financial Reporting Authority (NFRA or the Authority) has been constituted on 1st October, 2 India under Sub Section (1) of section 132 of the Companies Act, 2013.
2	Rule 4(1) of the NFRA Rules 2018 prescribes that the Authority shall protect the public interest and creditors and others associated with the companies or bodies corporate governed under rule 3 by establis of accounting and auditing and exercising effective oversight of accounting functions performed by corporate and auditing functions performed by auditors.
3	Rule 4(2) of the NFRA Rules 2018 requires the Authority, inter alia, to maintain details of particulars companies and bodies corporate specified in Rule 3 of NFRA Rules 2018.
4	As per Rule 3 of the NFRA Rules 2018, following classes of companies and their auditors are governed functions and duties relating to monitoring and ensuring compliance with accounting and auditing standa of service under sub-section (2) of section 132 or undertaking investigation under sub-section (4) of auditors.
4.1	Rule 3(1)(a): companies whose securities are listed on any stock exchange in India or outside India;
4.2	Rule 3(1)(b): unlisted public companies having paid-up capital of not less than rupees five hundre turnover of not less than rupees one thousand crores or having, in aggregate, outstanding loans, debentu than rupees five hundred crores as on the 31st March of immediately preceding financial year;
4.3	Rule 3(1)(c): insurance companies, banking companies, companies engaged in the generation or suppl governed by any special Act for the time being in force or bodies corporate incorporated by an Act in a (c), (d), (e) and (f) of sub-section (4) of section 1 of the Act;
4.4	Rule 3(1)(d): any body corporate or company or person, or any class of bodies corporate or companies made to the Authority by the Central Government in public interest; and
4.5	Rule 3(1)(e): a body corporate incorporated or registered outside India, which is a subsidiary or a company or body corporate incorporated or registered in India as referred to in clauses (a) to (d), if the subsidiary or associate company exceeds twenty per cent. of the consolidated income or consolidated ne the body corporate, as the case may be, referred to in clauses (a) to (d).
5	In order to perform the functions and duties of the Authority, one of the important pre-requisites is comprehensive master database of the companies and their auditors within the scope of the Author following critical steps and reconciliations of data from different sources.
5.1	Listed Companies: Master data available in Corporate Data Management (CDM) system of Ministry o has been considered as the primary data source, which is reconciled with data of listed companies p national stock exchanges of India currently recognised by the Securities and Exchange Board of India, (Metropolitan Stock Exchange). Also, companies appearing as listed in CDM, but on defunct/derecogn to be eliminated. Please refer to worksheet ‘Listed Co.Reconciliations’ for more details of this reconciliation.
5.2	Unlisted Companies: Unlisted Companies with certain parameters above prescribed thresholds as on the preceding financial year. Such companies have been identified based on the annual return (MGT-7) file financial year 2020 (financial year immediately preceding financial year 2021). It may be noted that th are yet to file the annual returns for the financial year 2020, accordingly, this data may require futher revision at a later day.
5.3	Insurance companies, Banking companies, companies engaged in the Generation or Supply of Electricity, companies governed by any special Act: Companies enaged in Insurance and Banking activities have been identified from the annual reports and information pubslished by the Prudential Regulators of these sectors viz. Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority of India (IRDAI). Specific identification of companies in other categories e.g. Electricity generation and supply companies will be taken up in due course.
5.4	Statutory Auditors of above class of companies: It is equally important to compile basic master data the various class of companies governed by the Authority under Rule 3(1) of the NFRA Rules 2018. data point has been compiled based on the auditors’ detailed availablie in the annual financial statements financial year 31 March 2021 and information obatined from RBI and IRDAI for Indian branches of F Companies, respectively. It may be noted that there are companies whose annual financial statments ar domain, accordingly, this data would require futher updation/revisions at a later date.
6	This comprehensive exercise of compliation of data base of companies covered by NFRA Rules/their a reconciliation with other important data bases was being performed for the first time as of 31 March 2019
7	Stakeholders and Public at large are requested to review the provisional data published and advise the necessary, and of suggesions for improvements and amedments, if any.

Government of India
National Financial Reporting Authority

*****

7th floor, Hindustan Times House,
Kasturba Gandhi Marg, New Delhi
Dated: 18.02.2022

No. NF- 22/4/2022
Provisional List of Companies within the ambit of NFRA as of 31 March 2021 (Refer Rule 3(1) of NFRA Rules 2018)
SI.No.	Specified Class of Companies	No. of Companies	Notes
1	Clause (a) of Rule 3(1) – Companies whose securities are listed on any stock exchange in India or outside India	5,563	(i)
2	Clause (b) of Rule 3(1) -Unlisted public companies having paid-up capital of not less than rupees five hundred crores or having annual turnover of not less than rupees one thousand crores or having, in aggregate, outstanding loans, debentures and deposits of not less than rupees five hundred crores as on the 31st March of immediately preceding financial year	1,156
3	Clause (c) of Rule 3(1) -Insurance companies, Banking companies, companies engaged in the Generation or Supply of Electricity, companies Governed by any Special Act for the time being in force or bodies corporate incorporated by an Act in accordance with clauses (b), (c), (d), (e) and (f) of sub-section (4) of section 1 of the Act	101	(ii)
	Total	6,820

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	Notes
(i)	Primary source of this data is from master data of companies captured in Ministry of Corporate Affairs (MCA) data base i.e. MCA21. Companies reported as ‘Listed’ in MCA21 are reconciled (Refer worksheet ‘ Listed Co. Reconciliations’ ) with the list of companies obtained from the Three (3) recognised national stock exchanges which are currently active viz. BSE, NSE and MSE. Further, companies with ‘Inactive’ status in MCA database are excluded from the above numbers. Listed Insurance and Banking Companies are excluded from this line as those are included as part of companies under clause 3(1Xc) below.
(ii)	Primary source of this data is as follows
(a)	Insurance Companies: Extracted for the list of insurance entities reported in the Annual Report of Insurance Regulatory and Development Authority of India (IRDAI). Entities engaged in insurance broking activities are not considered.
(b)	Banking Companies: Extracted for the list of banking entities reported in report of Reserve Bank of India (RBI) “Report on Trend and Progress of Banking in India” published on annual basis.
(c)	Electricity Generation and Supply Companies: Reliable data source to be identified. Currently, this category of companies are included if those are part of companies under clause 3(1Xa) or clause 3(1)(b) of NFRA Rules 2018.