National Financial Reporting Authority

• National Financial Reporting Authority (NFRA) has prepared a provisional database of companies and auditors.

About:

• The National Financial Reporting Authority is a regulatory body set up under Section 132 of the Companies Act to oversee compliance with Accounting and Auditing Standards by companies that can be described as Public Interest Entities (PIEs).

• This group includes all listed companies, and large unlisted companies.

• To discharge this mandate, NFRA is in the process of creating a verified and accurate database of companies and auditors that come under the regulatory ambit of NFRA.

• Establishment of this data base involves critical steps like identification and verification of the primary data source, and reconciliation of data (such as Company Identification Number (CIN) which is dynamic) from different sources.

• In this regard the NFRA has been engaging with the Corporate Data Management (CDM) division of Ministry of Corporate Affairs (MCA) and three recognised stock exchanges in India.

• A provisional data base of companies and their auditors as of 31st March 2019 has been compiled by the NFRA which has been published on the website of the NFRA.

• This provisional data will be updated/revised going forward based on the collection of further data and information. Similar exercise for compilation of the data base as of 31st March 2020 will be undertaken shortly.

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Mains Paper 3: Economy
Prelims level: National Financial Reporting Authority
Mains level: Read the newsfeed

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