Form NFRA-2 Extension

Form NFRA-2 is a crucial annual return that must be filed by specified Auditors with the National Financial Reporting Authority (NFRA). In this article, we provide a comprehensive understanding of the applicability of Form NFRA-2, the pre-requisites for filing, the essential details required in the form, and the recent due date extensions.

Applicability of Form NFRA-2

The requirement to file an annual return in Form NFRA-2 applies to auditors covered under Rule 3 of the National Financial Reporting Authority Rules, 2018. This filing is mandatory every year for eligible auditors.

Pre-requisites for Filing of Form NFRA-2

Before filing Form NFRA-2, auditors must gather the following essential information:

Limited Liability Partnership Identification Number (LLPIN) or other firm registration numbers.
Permanent Account Number (PAN) for Indian firms.
Registration Number from the relevant regulator or agency.
Network Registration Number with the Institute of Chartered Accountants of India (ICAI).
Details of any partners within the auditing firm.
Total employment numbers within the auditor's organization.
Company Details:
1. Name of the company or corporate body.
2. Corporate Identification Number (CIN), PAN, or Foreign Company Registration Number (FCRN).
3. Global Location Number (if applicable).
4. Auditor fees, including currency conversion rates for foreign currency transactions.
Digital Signature Certificate (DSC) for authentication.
Technical Requirements:
1. Supported Browsers: Internet Explorer 9.0+, Chrome 55.0+, Firefox 54.0+.
2. Latest version of Java installed.

Essential Details to be Provided by Auditors in Form NFRA-2

Auditors must ensure the following information is accurately represented in the submission:

Resignation Details:
1. Disclosure on resignation from any company within the past three years.
2. Details of resigned companies, including CIN/PAN, company names, and reporting periods.
Audit Report Withdrawals:
1. Information on any audit report withdrawals or consent withdrawals in the past three years.
2. Details of affected companies, including CIN/PAN, company names, and related periods.
Quality Control Policies: A statement outlining the auditor's quality control policies and procedures during the reporting period.

Due Date for Filing Form NFRA-2 and Recent Extensions

Auditors under NFRA mandates must file their Annual Return in Form NFRA-2 by November 30th each year. Since December 9th, 2019, the e-form NFRA-2 has been available on the NFRA website. The Ministry of Corporate Affairs has granted various extensions for the 2018-2019 fiscal year, as detailed below:

Circular Number	Extension Description
General Circular No. 14/2019 - December 27, 2019	90-day extension from e-form deployment date.
General Circular No. 07/2020 - March 5, 2020	150-day extension from e-form deployment date.
General Circular No. 19/2020 - April 30, 2020	210-day extension from e-form deployment date.

Thus, the final extended due date for filing Form NFRA-2 for the financial year 2018-2019 is July 6th, 2020.

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Frequently Asked Questions

Common questions about Form NFRA-2.

Form NFRA-2 is an annual return that must be filed by auditors covered under Rule 3 of the National Financial Reporting Authority Rules, 2018. This includes auditors of specified companies or bodies corporate.

The pre-requisites for filing Form NFRA-2 include having a Limited Liability Partnership Identification Number (LLPIN) or other registration number, Permanent Account Number (PAN), registration number with the regulator or agency, network registration number with ICAI, details of partners (if any), total number of employees, and details of the company or body corporate being audited. A digital signature certificate (DSC) is also required.

Auditors must provide details regarding any resignations from companies or body corporates in the past 3 years, any withdrawals of audit reports or consent during that period, and a statement containing their quality control policies and procedures for auditing practice during the reporting period.

The due date for filing Form NFRA-2 for the financial year 2018-2019 has been extended to 6th July 2020, which is 210 days from the date of deployment of the form on the NFRA website.

The technical requirements for filing Form NFRA-2 include using an internet browser version of Internet Explorer 9.0 or above, Chrome 55.0 or above, or Mozilla Firefox 54.0 or above, along with the latest version of Java.

In Form NFRA-2, auditors must provide the name of the company or body corporate, its CIN or PAN, FCRN or identity number, Global Location Number (if applicable), and details of fees received from the company or body corporate, including the currency conversion rate if fees were received in foreign currency.

The purpose of filing Form NFRA-2 is to provide an annual return to the National Financial Reporting Authority (NFRA) with essential details about the auditor's practice, including any resignations, withdrawals of audit reports, and quality control policies and procedures.

Yes, Form NFRA-2 is a prescribed format that auditors must use to file their annual return with the National Financial Reporting Authority. The form is available on the NFRA website.

Form NFRA-2 is an e-form that must be filed online on the National Financial Reporting Authority's website. A digital signature certificate (DSC) is required for the submission process.

The Network Registration Number with the Institute of Chartered Accountants of India (ICAI) is one of the pre-requisites for filing Form NFRA-2. This number is essential for auditors who are part of a network or group of audit firms.