NFRA Releases FAQs on NFRA-2 Form: Read Here

The National Financial Reporting Authority (NFRA) has issued a compiled Frequently Asked Questions document to clarify the contents and filing procedure for Form NFRA-2. The return covers audit reports signed between April 1, 2024 and March 31, 2025 and in most cases, pertains to financial statements for the year ended March 31, 2024.

Query 1: Form NFRA 2 is only available in PDF version as part of the Gazette notification. Since the e-form is not available, we are not able to collate the required information. Considering the timeline for submission of NFRA 2 is November 30, 2019, please advise when the e-form of NFRA-2 will be available.

Clarification: NFRA 2 form has to be filed online. Please refer to the following link https://eformnfra2.nic.in/ for e-filing Form NFRA2.

Query 2: While we are seeking clarifications and guidance on the information required in NFRA-2, we will appreciate if step by step instruction kit is available together with necessary guidance in form of Q&A.

Clarification: NFRA 2 form has to be filed online. Please refer to the following link https://eformnfra2.nic.in/ for e-filing Form NFRA2.

Query 3: Is there facility to upload client wise information using excel or word file to help in bulk filing of client data.

Clarification: NFRA 2 form has to be filed online. Please refer to the following link https://eformnfra2.nic.in/ for e-filing Form NFRA2.

Query 4: Please clarify whether the information in clause 3 and 4 of NFRA 2 form will be applicable only if the audit firm is the statutory auditor of an entity as per covered in Clause 3(1)(a) to 3(1)(e) of NFRA Rules 2018 or this clause will be applicable even in those cases where the audit firm audits the special purpose (non-statutory) financial statements.

Clarification: The information is required for statutory audit of financial statements by the auditor in respect of entities covered in Clause 3(1)(a) to 3(1)(e) of NFRA Rules 2018. It will not cover tax audits, Limited review & Quarterly audits.

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Query 5: Clause 4 requires specified information for audit clients and audit reports of the auditor. ... Our understanding is that it will not cover clients where engagements other than statutory audit under Section 143 are performed. You are requested to confirm our understanding.

Clarification: It will not cover tax audits, Limited review & Quarterly audits.

Query 6: Clause 4(a)(l)(3) requires Global Location Number - you are requested to provide guidance on what is Global location number and whether it is required to be given for all Indian companies?

Clarification: The GLN (Global Location Number) is a global code that identifies a location, in other words, an electronic address. It is provided by GS1 global, a not-for-profit information standards organization. Companies registered in India can also have GLN. However, the same is not mandatory.

Query 7: Clause 4(a)(l)(7)(B) and 4(a)(l)(8)(B) require Registration Number of the Engagement Partner and Engagement Quality-Control Partner, respectively. ... You are requested to confirm our understanding.

Clarification: 3(1)(e) would need to disclose registration details of concerned jurisdiction.

Query 8: Clause 4(a)(l)(9) requires confirming whether audit report has been modified, whereas Clause(4)(a)(l)(12) requires reporting on any findings in the Auditor's report which are unfavorable or qualified. Our understanding is that both these clauses require information about modifications/qualifications as defined in SA 705.

Clarification: Clause 4(a)(l)(9) pertains to modified report by Auditor as per SA 705. The words 'Unfavorable' or 'qualified' would be as mentioned in the paragraph 4 of CARO 2016.

Query 9: As per point 4.a.I.12/4.b.I.9 Any findings in the Auditor’s report which are unfavourable or qualified. Whether this includes Disclaimer of opinion or qualified opinion or both?

Clarification: Unfavourable or qualified report includes both Disclaimer of opinion as well as qualified opinion.

Query 10: Clause 4(a)(l)(10) requires disclosure of information on total fees and expenses received by the auditor from each specified company or body corporate. ... We appreciate if either the classification of services be aligned to that required by Schedule III or appropriate guidance is issued.

Clarification: The clause applies to all kinds of services provided by the auditor to the auditee. Services provided by the Auditor have to be classified as provided in the said clause.

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Query 11: Fee information to be provided in clause 4(a)(l)(10), our understanding is that the fee information is required without GST. You are requested to confirm our understanding.

Clarification: The fees does not include GST.

Query 12: Clause 4(b)(1)(11) requires confirming whether Generally Accepted Auditing Standards (GAAS) have been followed. ... You are requested to confirm our understanding.

Clarification: Auditing standards as applicable during the relevant period in the jurisdiction of the Auditee entity is to be stated.

With the filing deadline of November 30, 2025 fast approaching, the NFRA has reiterated that auditors of listed companies, large unlisted public companies and specified entities in regulated sectors must ensure timely submission of the NFRA-2 return.

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