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Form NFRA-2

Form NFRA-2 Extension

Form NFRA-2 is an annual return that is to be filed by the specified Auditor with the National Financial Reporting Authority (i.e., NFRA). Under the present article, we will try to understand the applicability of Form NFRA-2, pre-requisites for filing of Form NFRA-2, and essential details to be provided in Form NFRA-2 and recent due date extension.

Applicability of Form NFRA-2

The auditors covered under rule 3 of the National Financial Reporting Authority Rules, 2018, are required to file an annual return in Form NFRA-2 every year.

Pre-requisites for filing of Form NFRA-2

The list of pre-requisites for filing of Form NFRA-2 are-

  1. Limited Liability Partnership Identification Number (i.e., LLPIN) or any other registration number of the firm.
  2. Permanent Account Number (i.e., PAN) of the auditor (for Indian Firm).
  3. Registration Number of the auditor (with the regulator or agency).
  4. Network Registration Number of the auditor with the Institute of Chartered Accountant of India (ICAI).
  5. Details of the partners, if any, of the auditor.
  6. The total number of employees employed by the auditor.
  7. List of details of the company-
    1. Name of the company or body corporate.
    2. CIN or PAN of the company or body corporate. Or FCRN of the company or Identity number of the body corporate.
    3. Global Location Number of the company or body corporate (only if applicable).
    4. Details of fees received by the Auditor from the company or body corporate. Further, the currency conversion rate, in case the fees are received in Foreign currency.
  8. Digital signature certificate (i.e., DSC) of the user.
  9. Technical requirement-
    1. Browser – internet explorer version 9.0 and above, Chrome Version 55.0 and above, Mozilla Firefox version 54.0 and above.
    2. The latest version of JAVA.

Essential details to be provided by the auditors in Form NFRA-2

  1. Details relating to resignations-
    1. Whether or not the auditor has resigned from the post in any company or body corporate during the past 3 years.
    2. If yes, the number of companies or body corporates in which the auditor has resigned with details like CIN or PAN, Name of company/ body corporates, and reporting period for which the resignation was submitted.
  2. Details relating to withdrawals of an audit report-
    1. Whether or not the auditor has withdrawn an audit report on financial statements or withdrawn his consent to use the name in a report, document or written communication in the past 3 years.
    2. If yes, the number of companies or body corporates in which the withdrawal took place along with details like CIN or PAN, Name of company/ body corporates, and reporting period for which the resignation was submitted.
  3. Detail regarding quality control policies of the auditor-

A statement containing quality control policies and procedures of the auditor for its auditing practice during the reporting period is to be submitted.

Due date of filing of Form NFRA-2 and recent extension

Every auditor covered under NFRA is required to file an Annual Return in Form NFRA-2 on or before 30th November every year.

Interestingly, the e-form NFRA-2 was live since 9th December 2019 on the website of the National Financial Reporting Authority. Accordingly, the Ministry of Corporate Affairs has declared several extensions for filing of form NFRA-2 for the Financial Year 2018-2019. The following table summarizes, the extension so provided-

Relevant circular number Extension
General circular no. 14/2019 dated 27th December 2019 90 days from the date of deployment of form NFRA-2 on the website.
General circular no. 07/2020 dated 5th March 2020 150 days from the date of deployment of form NFRA-2 on the website.
General circular no. 19/2020 dated 30th April 2020 210 days from the date of deployment of form NFRA-2 on the website.

Concluding thereby that as per the final extension circular, the filing of Form NFRA-2 for the financial year 2018-2019 has been extended up to 210 days from the date of deployment of the form on the website. In other words, the due date for filing of Form NFRA-2 for the Financial Year 2018-2019 is 6th July 2020.

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