Applicability
1. Listed companies;
2. Unlisted companies with PSC of Rs. 500 cr or more / annual T.O. of Rs. 1000 cr or more / outstanding loans, debentures and deposit of more than Rs. 500 cr or more, as on 31st march of immediate preceding FY
3. 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)
4. Any reference made by central government to NFRA authority
5. body corporate registered outside India, which is subsidiary or associate company of companies / body corporate registered in India, with income / net worth of subsidiary or associate company is +20% of consolidated income / consolidated net worth (body corporate as defined in this clause are required to file form NFRA – 1)
Not Applicable
1. Private companies whose securities are not listed on any exchange;
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 partnership (LLP)
Filing Requirements
The forms filing can be classified in two parts:
1. Initial or one time disclosure on the commencement of the rules (Only apply on body corporate covered by the rules)
2. Disclosures on the appointment of the auditors(Everybody corporate covered by these rules shall within 15 days of appointment of an auditor, inform the authority about the particulars of the auditors appointed by the body corporate, in form NFRA-1)
E-filling Process
The form NFRA 1 shall be filed on https://eformNFRA.nic.in/
Consequence of Non Compliance
The company and every officer of the company who is in default or the auditor or such other person shall be punishable as per the provisions of section 450 of the companies act, 2013.
Disclaimer: Author have taken utmost care while drafting the article but it may occur that certain error creeps in. This article is for academic purpose and should not be treated as a professional advice. The readers are advised to refer the bare acts and rules before making any judgment.
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