National Financial Reporting Authority (NFRA) form 1 shall be filed by every company falling under the applicability rules concerning matters relating to accounting and auditing standards within 30 days of development of Form NFRA-1 i.e. By 31st July. The reason for the constitution of this entity by the central government in India is to set up an independent and separate the regulatory body.
Classes of companies governed by NFRA Rules:
- All the listed companies.
- All the unlisted companies with paid-up capital of INR 500 CR or more, turnover of INR 1000 CR and deposit of more than INR 500 CR.
- Insurance Companies.
- Banking companies.
- Companies engaged with the business of generating and supply of electricity.
- Companies governed with special acts like ICSI, ICAI, etc.
- Anybody corporate who is registered outside India, and is associated with companies registered in India if the net worth of the subsidiary company is +20% of consolidated Net worth.
- All private companies.
Background of Filing NFRA Form 1:
The Central Government constitutes, National Financial Reporting Authority (NFRA) to provide the matters related to accounting and auditing standards. All the companies are required to fill Form NFRA- 1 within 30 days.
The Central Government issued the National Financial Reporting Authority (NFRA) Rules to establish an independent regulator to strengthen the audit profession and to monitor and enforce compliance and for matters relating to accounting and auditing standards.
Every company falling under the applicability of NFRA Rules shall file e-form NFRA-1 concerning the accounting and auditing standards within 30 days of deployment of Form NFRA-1. The body corporate shall file Form NFRA-1 within 15 days of the appointment of an auditor.
Event-based NFRA-1 i.e. within 15 days of the appointment of the auditor has to be filed by all the body corporate except Indian companies.
Required details for filing of form NFRA-1:
- In the case of Indian body corporate:
- PAN details of the authorized Indian individual.
- Body corporate PAN Details.
- Membership No. of CS/PAN of Manager or CEO or CFO.
- PAN number of Auditor firm income tax.
- Membership number of auditors.
- Auditor firm registration number.
- I case of the auditor being appointed due to casual vacancy, then membership no. of Auditor or auditor firm registration no. who vacated the office needs to be required in the form.
- Copy of written consent that is given by the auditor.
- Copy of resolution passed by the body corporate side.
- User (Director/Manager/CEO/CFO/Company Secretary) digital signature (DSC).
- For foreign companies:
- Foreign authorized individual’s Passport Number.
- Registration number of foreign body corporate and the provider’s name.
Filing of NFRA Form:
The Form NFRA-1 is available on www.nfra.govt.in This form has to be filed online only. For submission of the form NFRA-1, the user must first register on the NFRA portal and then sign in with some basic information about the person filing the form and the details of the company.
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