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NFRA sets up Advisory Committee | Functions and Duties

NRFA

  • Audit regulator National Financial Reporting Authority (NFRA) has constituted a technical advisory committee (TAC) under the chairmanship of R. Narayanaswamy, Professor, Indian Institute of Management, Bangalore.
  • This TAC, which comprises seven members including the chairman, would among other things aid and advise the executive body of the NFRA on issues relating to drafts of accounting standards and auditing standards

National Financial Reporting Authority (NFRA)

The National Financial Reporting Authority (NFRA) was constituted on 01st October 2018 by the Government of India under Sub Section (1) of section 132 of the Companies Act, 2013.

Functions and Duties

  • Recommend accounting and auditing policies and standards to be adopted by companies for approval by the Central Government.
  • Monitor and enforce compliance with accounting standards and auditing standards;
  • Oversee the quality of service of the professions associated with ensuring compliance with such standards and suggest measures for improvement in the quality of service;
  • Perform such other functions and duties as may be necessary or incidental to the aforesaid functions and duties.

Authority shall protect the public interest and the interests of investors, creditors and others associated with the companies or bodies.

  • Companies and Bodies Corporate Governed by the Authority
  • Companies whose securities are listed on any stock exchange in India or outside India;
  • Unlisted public companies having paid-up capital of not less than rupees five hundred crores or having annual turnover of not less than rupees one thousand crores or having, in aggregate, outstanding loans, debentures and deposits of not less than rupees five hundred crores as on the 31st March of immediately preceding financial year
  • Insurance companies, banking companies, companies engaged in the generation or supply of electricity, companies governed by any special Act for the time being in force or bodies corporate incorporated by an Act in accordance with clauses (b), (c), (d), (e) and (f) of sub-section (4) of section 1 of the Act.
  • Any body corporate or company or person, or any class of bodies corporate or companies or persons, on a reference made to the Authority by the Central Government in public interest