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There is question in mind of professionals/ corporate i.e. As per Rule 3(2) of NFRA "Every existing body corporate other than a company governed by these rules, shall inform the Authority within thirty days of the commencement of these rules, in Form NFRA-1, the particulars of the auditor as on the date of commencement of these rules."

  1. Whether every Company, which are not covered in NFRA rules are required to file NFRA -1?
  2. Which are the Companies on whom NFRA rules are applicable?

1) Companies covered under NFRA:

A) All Listed Companies/ Listed Body Corporate;

Body Corporate: body corporate" or "corporation" includes a company incorporated outside India,

B) Unlisted Public Companies with 

- Paid up Capital or Loans > = INR 500 crores OR 
- Turnover > = INR 1000 crores OR 
- Outstanding Loan, Debentures and Deposit >= INR 500 crores

**Above Limits shall be check on as on the 31st March of immediately preceding financial year;

  • Banking Companies
  • Insurance
  • Electricity Companies
  • Special Act Companies

C) Body corporate; or Company; or Person on a reference made by CG in public interest .

D) Certain specific foreign Subsidiaries/Associates of Indian Companies

**NOTE: Once a Company falls under the above limits under NFRA, will be covered by NFRA for 3 More years.  

Whether every Company, which are not covered in NFRA rules are required to file NFRA -1?

As per Rules, Every existing body corporate, other than a company, governed by these rules, shall inform the Authority within thirty days of the commencement of these rules, in Form NFRA-1, the particulars of the auditor as on the date of commencement of these rules.

Note: NFRA-1 shall be required to file by a “BODY CORPORATE” which not covers in above mentioned companies.

 Therefore, it can be opine that Indian Companies are not required to file NFRA-1. Only body corporate are required to file the same.

2) Other Compliances:

Everybody corporate shall within 15 days of appointment of an auditor, inform the Authority about the particulars of the auditors appointed by the body corporate, inform NFRA-1;

Note: Indian Cos. are exempted from this requirement.

Annual return: Every auditor referred to in rule 3 shall file a return with the Authority on or before 30th April every year in such form as may be specified by the Central Government


 

Published by

CS Divesh Goyal
(Practicing Compnay Secretary)
Category Corporate Law   Report

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