The Ministry of Corporate Affairs (MCA) has extended the last date of filing annual returns with the National Financial Reporting Authority (NFRA) by three months. Auditors need to file their returns with the authority by November 30 each year. Now, they have been given an extension of 90 days.

“MCA received several representations for extending the last date of filing the NFRA-2 form (annual return). The ministry after considering the representations decided to extend the date,” an official source said.

The Form NFRA-2 is an annual return which is to be filed by an auditor with the authority. It is a long form necessitating an auditor to provide detailed information on the assurance services performed by him during the period.

Through this form, auditors inform the NFRA on whether the auditor has resigned from his post in any company/body corporate during the past three years, or the number of companies/ bodies corporate where the auditor resigned during the past three years.

Auditors also inform the authority about whether they have withdrawn an audit report on financial statements or withdrawn its consent to the use of its name in a report, document or written communication in the past three reporting periods. They also have to provide a statement on quality control policies and procedures of the auditor for its auditing practice during the reporting period.

AMRG & Associates chief executive officer Gaurav Mohan said as per NFRA norms, every auditor has to file a return on or before November 30 every year in form NFRA-2. However, as of now, the e-Form has not been deployed on NFRA website.

“NFRA-2 is a comprehensive information form which needs to be filed by auditors, enabling the authority to initiate review of assurance engagements performed by audit fraternity. The purpose of setting up a regulator is defeated if government is unable to implement a simple dynamic electronic form for collection of information,” Mohan said.

Source : PTI