NFRA-2 Annual Filing – Mandatory for Statutory Auditors!

NFRA-2 filing is mandatory for statutory auditors under NFRA Rules, 2018. Learn who must file, due date, penalties, and step-by-step process to stay compliant.

NFRA-2 is a mandatory annual return that specific auditors must file with the National Financial Reporting Authority (NFRA) by November 30th each year.

This filing is an annual report on the auditor’s practice and includes details about their clients, audits, fees, and quality control policies. Failure to file can result in penalties for violating the Companies Act and NFRA Rules.

What is NFRA-2?

NFRA-2 is an annual return that every statutory auditor covered under the National Financial Reporting Authority (NFRA) Rules, 2018 must file.

It contains complete details about:
Audit clients,
Audit reports issued,
Disciplinary proceedings (if any), and
Audit-related network information.

Legal Basis:

As per Rule 5, read with Rule 3 of the NFRA Rules, 2018, the filing obligation applies to auditors of specified classes of entities under the Companies Act, 2013.

Who Needs to File NFRA-2?

✅ Auditors of Listed Companies
✅ Auditors of Unlisted Public Companies (meeting threshold limits)
✅ Auditors of Insurance, Banking, Electricity, or Other Statutory Corporations
✅ Auditors of Bodies Corporate referred to NFRA by the Central Government

Due Date:

Must be filed within 270 days from the end of the financial year.

For FY 2023-24, the due date would typically fall around December 2025 (unless extended by MCA).

Why It’s Important:

Ensures transparency and regulatory oversight in auditing.

Strengthens public confidence in financial reporting.

Helps NFRA monitor auditor independence and professional standards.

Non-filing or delayed filing may attract penalties under the Companies Act, 2013.

How to File:

Visit www.nfra.gov.in
Register / log in using auditor credentials
Fill & validate data in NFRA-2 form
Attach relevant disclosures and submit digitally