Now Reading: NFRA flags 988 audit firms for Form NFRA 2 filing lapses
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NFRA flags 988 audit firms for Form NFRA 2 filing lapses
The National Financial Reporting Authority has identified 988 audit firms of listed and unlisted companies that either failed to file or submitted incomplete Form NFRA 2 for the 2024-25 reporting period. According to NFRA's provisional list, 947 firms appear not to have filed the annual return, while 41 firms filed incomplete returns.
Under Rule 5 of the NFRA Rules 2018, auditors of companies covered under Rule 3 must file the annual return in Form NFRA 2 by November 30 each year. For the 2024-25 period, the due date was November 30, 2025. NFRA has kept the filing window open to give audit firms additional time to complete their filings.
The regulator has divided the list into Part A (firms that have not filed) and Part B (firms with incomplete filings). NFRA said the list is provisional and inclusion does not establish professional misconduct. Firms that have already filed or completed their returns have been asked to inform NFRA. The regulator also asked firms facing technical issues to contact its helpdesk.
Indian Opinion Analysis
NFRA's latest compliance list signals a push for stricter adherence to annual reporting rules among auditors. The 988 flagged firms include those auditing both listed and unlisted entities, expanding the regulator's oversight beyond top-tier companies. Non-filing or incomplete returns can lead to penalties under the Companies Act, 2013. For auditors, the immediate risk is reputational and regulatory scrutiny rather than outright suspension. The next milestone is NFRA's final list after the extended window closes, which will show how many firms actually comply. Watch for NFRA's subsequent enforcement actions, which may include show-cause notices or monetary penalties for persistent defaulters.
Source: cfo.economictimes.indiatimes.com
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