MCA/ NFRA Update on Due Date regarding Filing of NFRA - 1

[CS Rajat Agrawal]

Dear Members, 

MCA UPDATE regarding NFRA-1 Form

2nd July 2019

For entities required to inform the appointment of their auditor in Form NFRA-1, it as clarified that the time limit for filing Form NFRA-1 will be 30 days from the date of deployment of the said Form on the website of MCA/ NFRA.

It is hereby clarified that the NFRA-1 Form has been deployed on NFRA website (nfra.gov.in) and accordingly, the last date of filing the same by the entities concerned will be 31st July 2019.

National Financial Reporting Authority Rules, 2018 (Extract)

Rule 3(1) of NFRA Rules - Companies on which NFRA has powers to monitor and enforce compliance with accounting standards and auditing standards, oversee quality of service u/s 132(2) or undertake investigation u/s 132(4) on following class of companies and body corporates:

Rule 3(1)(a) - Companies whose securities are listed on any stock exchange in India or outside India

Rule 3(1)(b) - Unlisted public companies fulfilling any of the following criteria as on March 31 of preceding FY

(i) Having paid-up capital of not less than Rs. 500 crores; or

(ii) Having annual turnover of not less than Rs. 1,000 crores; or

(iii) Having in aggregate, outstanding loans, debentures and deposits of not less than Rs. 500 crores

Rule 3(1)(c) - Insurance companies, banking companies, companies engaged in generation or supply of electricity, or companies governed by any special Act as per clauses (b), (c), (d), (e) and (f) of Section 1(4) of the Act

Rule 3(1)(d) - Any body corporate or company or person, or class of bodies corporate or companies or person, on a reference made to the Authority by CG in public interest

Rule 3(1)(e) - Body corporate which is:

(i) Incorporated or registered outside India, which is a subsidiary company or associate company of the company or body corporate registered in India as referred in point (1) to (4) above; and

(ii) Income or net worth exceeds 20% of the consolidated income or consolidated net worth of such company or the body corporate

A company or a body corporate other than a company governed under this rule shall continue to be governed by the Authority for a period of three years after it ceases to be listed or its paid-up capital or turnover or aggregate of loans, debentures and deposits falls below the limit stated therein.[Rule 3(4)]

These rules shall NOT apply to:

1. Private companies

2. Unlisted public companies with paid-up capital or turnover or aggregate of loans, debentures and deposits below the limit stated in Rule 3(1) and

3. Limited Liability Partnerships (LLP)

Regards,

CS Rajat Agrawal

Practising Company Secretary

+91 7003 899 800 (WhatsApp)

Enclosed: Letter by NFRA