|
The Tax PublishersRequirement of Giving Notice in Form NFRA-1
S. Swaminathan
Section 132 of the Companies Act, 2013 empowers National Financial Reporting Authority(NFRA) to recommend accounting and auditing standards and to ensure monitoring and compliance thereof alongwith overseeing the quality of services provided by professionals. As per NFRA Rules, 2018, certain bodies corporate are required to serve notice to the Authority regarding its auditor. Learned Author in this Article provides for functions of the Authority and requirement of filing Form NFRA-1.
1. Introduction
Section 133 of the Companies Act, 2013 stipulates that the Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accountants Act, 1949, in consultation with and after examination of the recommendations made by the National Financial Reporting Authority. NFRA has been constituted by the Central Government w.e.f. 1-10-2018. Section 132 of the Companies Act, 2013 envisages the constitution, functions, powers etc. of NFRA. Rule 3 of the National Financial Reporting Authority Rules, 2018(NFRA Rules) requires certain classes of companies or bodies corporate to inform particulars of auditors to the Authority in Form NFRA-1. Requirement of filing such Form has been portrayed in this Article.
SUBSCRIBE FOR FULL CONTENT |