New Delhi, Feb. 27 -- India's National Financial Reporting Authority (NFRA) will review financial statements of more companies as part of its annual inspection of audit practices this fiscal, according to two persons aware of the matter.

The authority will cover financials of about 35-40 companies signed off by the country's top auditors in the fiscal ending 31 March, the people quoted earlier said, speaking on the condition of anonymity. That compares with 25 companies covered in the inspections held in the previous financial year (FY25).

The inspection reports, to be released before March-end, will flag deficiencies and areas of improvement in the audit of financial statements of these companies. The reports, which set the benchmark o...