What is Form NFRA 2?

NFRA-2 is an annual return that must be filed by the specified auditor with the National Financial Reporting Authority (NFRA). This report provides the NFRA with the details about the auditor’s practice and compliance with the NFRA Rules. As per the NFRA Rules 2018, every auditor of companies and body corporate specified in Rule 3 must file a return with the authority on or before November 30, every year, in a form specified by the Central Government.

Who Must File Form NFRA 2?

The Form NFRA 2 must be filed by the auditors of the following companies:

• Companies whose securities are listed on any stock exchange in India or outside India
• Unlisted companies with paid-up capital not less than Rs 500 Crores or with annual turnover of not less than Rs 1000 crores, or having aggregate outstanding loans, debentures and deposits of not less than Rs 500 crores as on March 31st of the previous financial year.
• Insurance companies, banking companies, companies that generate or supply electricity, companies governed by any Special Act and Body Corporate incorporated by an Act in accordance with clauses (b) to (f) of sub-section 4 of section 1 of the Companies Act, 2013.
• Any body corporate or company or person, or any class of bodies corporate or companies or persons.
• Foreign incorporated Subsidiary or Associate of any company or body corporate mentioned above, and whose net worth or income exceeds 20% of the Consolidated net worth or income.

Requirement for Form NFRA 2

The filers must have the following documents while filing the Form NFRA 2:

• Limited Liability Partnership Identification Number (LLPIN) or any other registration Number of the firm
• Income Tax PAN of Auditor (for Indian firm)
• Registration number of the Auditor with the regulator/agency

The Companies must submit the following details in the Form NFRA-2:

• Name of Company/Body Corporate
• CIN/ PAN of Company /Body Corporate or FCRN of the company or Identity number of body corporate
• Global Location Number of Company/ Body Corporate (if applicable)
• Details of the Fees received by the Auditor from the Company/ Body Corporate
• Currency Conversion rate (if fee is received in Foreign Currency)
• Network Registration Number of the auditor with ICAI
• Details of the Partners of the auditor
• Number of employees employed by the auditor
• Digital Signature Certificate (DSC) of the User.

Process for DSC Registration and e-Signing

Here is the step-by-step process for the DSC Registration and e-signing:

• Step 1: Install Java (17 or above) from the internet.
• Step 2: Download DSC Utility for Windows
• Step 3: Ensure your browser is updated.
• Step 4: Restart Your System
• Step 5: Run the DSC Signer Utility before starting DSC registration or e-signing.
• Step 6: Put your DSC token into the USB port.
• Step 7: Click the “Show Certificates” button to see the list of installed DSCs.
• Step 8: Choose the DSC from the list.
• Step 9: Click “Submit” to complete the process.

Reporting Period for NFRA-2 Due on November 30, 2025

The reporting period for the NFRA-2, which is due on November 30th, 2025, is April 1, 2024, to March 31, 2025. For more information, users can check the FAQs released by the authority.