Auditors get 90 days to file NFRA-2 form

The Corporate Affairs Ministry (MCA) has given a breather for statutory auditors who were earlier required to file the NFRA-2 form with the National Financial Reporting Authority (NFRA) by November 30.

It has now allowed the form — which specified the format of the Annual return — to be filed with the new independent audit regulator NFRA within 90 days from the day on which it was published on the website of the Authority.

With December 9 as the date on which form NFRA-2 was published on the Web site, auditors will have time till March 9 to file the form, said experts in the audit fraternity.

Part of the reason for extending the timeline was the fact that NFRA came up with the format very late and closer to the November 30 deadline. As the information sought was quite extensive, more time was required and representations were made to the MCA to extend the last date of filing, sources said.

It may be recalled that NFRA — now an independent regulator for auditors of listed companies and large unlisted companies, besides banks and insurers — was constituted by the Central Government for enforcement of auditing standards and ensuring the quality of audits, in order to enhance investor and public confidence in financial disclosures of companies.

NFRA also has oversight of electricity firms and those body corporates referred to it by the Centre. #casansaar (Source - The Hindu Business line)