Publication of provisional database for the companies under the regulatory ambit of National Financial Reporting Authority

The National Financial Reporting Authority is a regulatory body set up under Section 132 of the Companies Act to oversee compliance with Accounting and Auditing Standards by companies that can be described as Public Interest Entities (PIEs). This group includes all listed companies, and large unlisted companies.

To discharge this mandate, NFRA is in the process of creating a verified and accurate database of companies and auditors that come under the regulatory ambit of NFRA.

Establishment of this data base involves critical steps like identification and verification of the primary data source, and reconciliation of data (such as Company Identification Number (CIN) which is dynamic) from different sources. In this regard the NFRA has been engaging with the Corporate Data Management (CDM) division of Ministry of Corporate Affairs (MCA) and three recognised stock exchanges in India.

A provisional data base of companies and their auditors as of 31st March 2019 has been compiled by the NFRA. This includes approx. 6,500 companies, comprising listed companies (around 5,300), unlisted companies (around 1,000), and Insurance and Banking Companies. The auditor details for many of these companies have been compiled; in the remaining cases, this exercise is in progress.

To achieve the objectives for which NFRA has been established, and to promote transparency in its working, this provisional data as of 31st March 2019 has been published on the website of the NFRA (https://www.nfra.gov.in/nfra_domain). This provisional data will be updated/revised going forward based on the collection of further data and information. Similar exercise for compilation of the data base as of 31st March 2020 will be undertaken shortly.

Government of India
National Financial Reporting Authority
7th Floor, Hindustan Times House,
Kasturba Gandhi Marg, New Delhi

No. NF-25011/5/2021 Dated 04.05.2021

List (Provisional) of Companies within the ambit of NFRA

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

National Financial Reporting Authority (NFRA or the Authority) has been constituted on 1st October, 2018 by the Government of 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 the interests of investors, creditors and others associated with the companies or bodies corporate governed under rule 3 by establishing high quality standards of accounting and auditing and exercising effective oversight of accounting functions performed by the companies and bodies 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 of auditors appointed in the companies and bodies corporate specified in rule 3.

4. As per Rule 3 of the NFRA Rules 2018, following classes of companies and their auditors are governed by scope of the Authority’s functions and duties relating to monitoring and ensuring compliance with accounting and auditing standards, overseeing the quality of service under sub-section (2) of section 132 or undertaking investigation under sub-section (4) of such section in respect 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 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;

4.3 Rule 3(1)(c): 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;

4.4 Rule 3(1)(d): any body corporate or company or person, or any class of bodies corporate or companies or persons, on a reference 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 associate company of any company or body corporate incorporated or registered in India as referred to in clauses (a) to (d), if the income or networth of such subsidiary or associate company exceeds twenty per cent. of the consolidated income or consolidated networth of such company or 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 to compile and establish a comprehensive master database of the companies and their auditors within the scope of the Authority. This exercise involves 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 of Corporate Affairs (MCA) has been considered as the primary data source, which is reconciled with data of listed companies provided by the ‘Three (3)’ national stock exchanges of India currently recognised by the Securities and Exchange Board of India, viz., BSE, NSE and MSE (Metropolitan Stock Exchange). Also, companies appearing as listed in CDM, but on defunct/derecognised stock exchanges have 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 31st March of immediately preceding financial year. Such companies have been identified based on the annual return (MGT-7) filed by the companies for the financial year 2018 (financial year immediately preceding financial year 2019). It may be noted that there are companies who are yet to file the annual returns for the financial year 2018, accordingly, this data may require futher revisions at a later date.

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 periodical 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 take up in due course.

5.4 Statutory Auditors of above class of companies: It is equally important to compile basic master data of the statutory auditors of the various class of companies governed by the Authority under Rule 3(1) of the NFRA Rules 2018. As of now, this important data point has been compiled, in the absence of any other credible data source, based on the annual filings by the companies relating to their financial statements (AOC-4) for the financial year 31 March 2019. It may be noted that there are companies who are yet to file the annual returns for the financial year 2019, accordingly, this data may require futher updation/revisions at a later date.

6. This comprehensive exercise of compliation of data base of companies covered by NFRA Rules/their auditors from CDM and its reconciliation with other important data bases is being performed for the first time. In respect of master data as of 31 March 2019, substantial progress has been made on best efforts basis by the staff of the Authrority and accordingly this data is published on provisional basis for infromation of the public with a view to ensure transparency in the functioning of the Authority.

7. Stakeholders and Public at large are requested to review the provisional data published and advise the Authority about corrections necessary, and of suggesions for improvements and amedments, if any.

Sl.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 5,356 (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 1,088 (ii)
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 153 (iii)
Total 6,597

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 next sheet) 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(1)(c) 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” publihsed on annual basis. Branches of Foregin Banks are excluded from this list.

(iii) Electricity Generation and Suply Companies: Reliable data source to be identified. Currently, this category of companies are included if those are part of companies under clause 3(1)(a) or clause 3(1)(b) of NFRS Rules 2018.

Download List (Provisional) of Companies within the ambit of NFRA

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