Rule 3 Classes of companies and bodies corporate governed by the Authority
- Chapter
- I · Scope and Functions
(1) The AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act shall have power to monitor and enforce compliance with accounting standardsDefined in rule 2(a): accounting standards means the 'accounting standards' as defined in clause (2) of section 2 of the Act: and auditing standardsDefined in rule 2(c): auditing standards means the 'auditing standards' as defined in clause (7) of section 2 of the Act, oversee the quality of service under sub-section (2) of section 132 or undertake investigation under sub-section (4) of such section of the auditors of the following class of companies and bodies corporate, namely:-
(a) companies whose securities are listed on any stock exchange in India or outside India:
(b) 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;
(c) insurance companies, banking companies, companies engaged in the generation or supply of electricity, companies governed by any special ActDefined in rule 2(b): Act means the Companies Act, 2013 (18 of 2013) for the time being in force or bodies corporate incorporated by an ActDefined in rule 2(b): Act means the Companies Act, 2013 (18 of 2013) in accordance with clauses (b), (c), (d), (e) and (f) of sub-section (4) of section 1 of the ActDefined in rule 2(b): Act means the Companies Act, 2013 (18 of 2013);
Explanation.- For the purpose of this clause, "banking company" includes 'corresponding new bank' as defined in clause (d) of section 2 of the Banking Companies(Acquisition and Transfer of Undertakings) ActDefined in rule 2(b): Act means the Companies Act, 2013 (18 of 2013), 1970 (5 of 1970) and clause (b) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) ActDefined in rule 2(b): Act means the Companies Act, 2013 (18 of 2013), 1980 (40 of 1980) and 'subsidiary bank' as defined in clause (k) of section 2 of the State Bank of India(Subsidiary Bank) ActDefined in rule 2(b): Act means the Companies Act, 2013 (18 of 2013), 1959 (38 of 1959)
(d) any body corporate or company or person, or any class of bodies corporate or companies or persons, on a reference made to the AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act by the Central Government in public interest; and
(e) a body corporate incorporated or registered outside India, which is a subsidiary or associate company of any company or body corporate incorporated or registered in India as referred to in clauses (a) to (d), if the income or networth of such subsidiary or associate company exceeds twenty per cent. of the consolidated income or consolidated networth of such company or the body corporate. as the case may be, referred to in clauses (a) to (d).
(2) Every existing body corporate other than a company governed by these rules, shall inform the AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act within thirty days of the commencement of these rules, in FormDefined in rule 2(h): Form means the Form annexed to these Rules: NFRA-1, the particulars of the auditorDefined in rule 2(d): auditor means an individual or a firm including a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009) or any other Act for the time being m force, who has been appointed as an auditor of a company or a body corporate under section 139 of the Act or under any other... as on the date of commencement of these rules.
(3) Every body corporate, other than a company as defined in clause (20) of section 2, formed in India and governed under this rule shall, within fifteen days of appointment of an auditorDefined in rule 2(d): auditor means an individual or a firm including a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009) or any other Act for the time being m force, who has been appointed as an auditor of a company or a body corporate under section 139 of the Act or under any other... under sub-section (1) of section 139, inform the AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act in FormDefined in rule 2(h): Form means the Form annexed to these Rules: NFRA-1, the particulars of the auditorDefined in rule 2(d): auditor means an individual or a firm including a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009) or any other Act for the time being m force, who has been appointed as an auditor of a company or a body corporate under section 139 of the Act or under any other... appointed by such body corporate:
Provided that a body corporate governed under clause (e) of sub-rule (1) shall provide details of appointment of its auditorDefined in rule 2(d): auditor means an individual or a firm including a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009) or any other Act for the time being m force, who has been appointed as an auditor of a company or a body corporate under section 139 of the Act or under any other... in FormDefined in rule 2(h): Form means the Form annexed to these Rules: NFRA-1.
(4) A company or a body corporate other than a company governed under this rule shall continue to be governed by the AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act for a period of three years after it ceases to be listed or its paid-up capital or turnover or aggregate of loans, debentures and deposits falls below the limit stated therein