NFRA publishes list of Audit firms/ auditors who not filed mandatory NFRA-2 form

The National Financial Reporting Authority(NFRA) has published a list of audit forms/auditors who have not filed the mandatory e-form, NFRA-2, for the reporting period 2018-19 and 2019-20.

In accordance with Rule 5 of the 2018 National Financial Reporting Authority Rules, the annual return must be submitted. The annual return must be submitted by the auditors/audit firms of the class of companies listed in Rule 3 of the NFRA Rules 2018 no later than November 30 of each year.

Additionally, in the past, NFRA had sent notifications to defaulting firms after identifying instances of non-compliance with the aforementioned regulatory criteria. A list of these companies/auditors was also shared with the Ministry of Corporate Affairs and published on the NFRA website.

The deadline for submitting NFRA-2 for the reporting period 2018–19 (audit reports signed from April 1, 2018, to March 31, 2019) was November 30, 2019. The deadline was extended till 4 September 2020 because it was the first year of filing. Following an investigation, it was discovered that 617 audit firms/auditors had not yet submitted their NFRA-2 for the reporting period 2018–19.

A total of 1684 audit firms have not yet filed NFRA-2 for the upcoming reporting period, 2019–20 (Audit reports signed during the period of 01.04.2019 to 31.03.2020). For the reporting period 2019–20, the NFRA-2 submission deadline was 30 November 2020.

On the NFRA website (https://nfra.gov.in/nfra domain), you may find a list of audit firms and auditors who are in default for these two years. The NFRA also notifies such audit firms and auditors in writing.

Attention of all defaulting audit firm/ auditors is invited to the fact that non-filing of NFRA-2 form is a non-compliance covered under Rule 13 of NFRA rules and attracts penal provisions. The rule has been further amended vide NFRA amendment Rules 2022 dated 17.06.22. The amended Rule 13 is published on NFRA website

(https://nfra.gov.in/sites/default/files/236669.pdf)

The list of defaulting audit firms/auditors for the reporting period after 2020-21 is also being reviewed and will be published soon.

It is also reminded that the due date for the reporting period 2021-22 (Audit reports signed during the period 01.04.2021 to 31.03.2022) is 30 November 2022. Auditors/firms are advised to file NFRA-2, if not already done so.