Requirement of Filing of NFRA-1

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