PremiumNew Delhi:Around 6,500 entities including listed and unlisted companies as well as insurance and banking companies are under the purview of National Financial Reporting Authority (NFRA) which enforces audit quality standards, the corporate affairs ministry said on Friday.
NFRA has come out with a provisional database of entities under its purview as of 31 march 2019 as part of enforcing audit standards. The ministry said NFRA is mandated to oversee compliance by ‘public interest entities’ which includes all listed companies and large unlisted entities. The database of entities gives clarity to businesses as well as their auditors of their statutory obligations.
Premium Premium The database comprises list of firms that are verified from different sources such as the corporate affairs ministry and stock exchanges. Of the list, around 5,300 are listed companies, around 1000 are unlisted companies while insurance and banking companies make up the rest. The provisional database will be revised based on further data collection.
NFRA has in the past taken stringent measures against the statutory auditors of Infrastructure Leasing & Financial Services Ltd. entities after the group faced financial collapse leading to the government replacing its board of directors with a state appointed one. Accounting and audit related lapses are viewed seriously by the regulator.
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