The Institute of Cost Accountants of India Erode

The Institute of Cost Accountants of India Erode Chapter NFRA RULES 2018 5 TH JANUARY 2019 ----SATURDAY--6. 00 p. m to 9. 00 p. m . Faculty: - CMA R GOPAL MFM M. Phil. , FCMA Practicing Cost Accountant

Applicable to • Chartered Accountants

Not applicable to • CMA & • ACS

Companies act • 132 • Constitution of NFRA

NFRA consists 132 (3) • Chairman + 15 members (expertise in accountancy, auditing, finance or law) • • Not be associated with any audit firm (including related consultancy firms)

Sec 132 (4) (a) • matters of professional or other misconduct committed by any member or firm of chartered accountants • initiated an investigation

Sec 132 (4) (b) • (i) discovery and production of books of account and other documents, at such place and at such time as may be specified by the National Financial Reporting Authority; • (ii) summoning and enforcing the attendance of persons and examining them on oath; • (iii) inspection of any books, registers and other documents of any person referred to in clause (b) at any place; • (iv) issuing commissions for examination of witnesses or documents

penalty • (I) not less than one lakh rupees, but which may extend to five times of the fees received, in case of individuals; and • (II) not less than ten lakh rupees, but which may extend to ten times of the fees received, in case of firms;

debarring the member or the firm • six months or for such higher period not exceeding ten years

Need for NFRA • banking frauds, the NPA crisis, Tax evasion

Which Companies Will Be Covered By NFRA • All Listed Companies/ Listed Body Corporate • All Banks/ Insurance/ Electricity Companies • Foreign Subsidiary/Associate company • Unlisted Companies which • Paid up Capital is Rs. 500 Cr. or More; OR • Turnover is Rs. 1000 Cr. or More; OR • AGGREGATE of Outstanding Loan, Debentures and Deposit is 500 Cr. or More.

Some Important Points: • Every existing body corporate other than a company governed by these rules, shall inform the Authority within thirty days of the commencement of these rules, in Form NFRA-1, the particulars of the auditor as on the date of commencement of these rules. •

Additional points • Once a Company falls under the above limits under NFRA, will be covered by NFRA for 3 More years EVEN IF LIMITS ARE REDUCED/ LISTED STATUS CHANGES LATER ON. • • Every Body Corporate other then Company as defined u/s 2(20) formed in India and governed under this rule shall, within fifteen days of appointment of an auditor under sub-section (1) of section 139, inform the Authority in Form NFRA-1, the particulars of the auditor appointed by such body corporate .

Filing Of Annual Return By Auditor • Every auditor referred above shall file a return with the Authority on or before 30 th April every year in such form as may be specified by the Central Government

Definitions • accounting standards, auditing standards auditor • full-time member part-time member

Thanks • Query plz • ? ? ?